QDF: Solid Quality Dividend ETF But Still Vulnerable In Drawdowns

2025-05-29 13:17:38 ET

Summary

• QDF uses a proprietary screening process to select high-quality dividend paying stocks that, as a whole, match a specific set of portfolio constraints. I estimate its dividend yield at 1.95%.
• Compared to similar dividend-themed ETFs like DGRW, VIG, DGRO, and CGDV, QDF's sector diversification is poor, and nearly 30% of the portfolio is allocated to tech stocks.
• However, the benefit is a fund that ranks well on quality, growth, and value. Even with the high tech sector exposure, QDF trades at an attractive 18.39x forward earnings.
• Performance has been solid over the last five years after a disappointing start. Still, CGDV has topped all of the above ETFs, and I think it's the superior fund.
• Overall, QDF earns a "hold" rating.

Investment Thesis

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