- SDIV is extremely cheap from an absolute perspective if we look at fundamental ratios only. The fund trades at only 4x earnings and has an 11% dividend yield.
- However, we are now at a tipping point for global economic growth and I believe the dividend trap risk is more significant today than it was a few months ago.
- As the global recession risk is now higher than a few months ago, I would avoid buying SDIV today.
- Better opportunities might be ahead to buy this ETF for the patient investor.
For further details see:
SDIV: The Yield Is Back At 11%, But Beware Of Dividend Traps