The NASDAQ International Dividend Achievers™ Index is comprised of non-US incorporated securities with at least five consecutive years of increasing regular dividend payments. Perhaps If I were looking for yield ganna basics I’d probably prefer a little higher weighting on the utilities. Well perhaps if they were individual stocks I wouldn’t buy them. Let’s look at some examples in each sector and I will choose my favorites.
Fund performance reflects applicable fee waivers, absent which, performance data quoted would have been lower. Distributions in excess of the Fund’s current and accumulated earnings and profits are treated as a tax-free return of capital to the extent of your basis in the Shares, and as capital gain thereafter. A distribution will reduce the Fund’s net asset value per Share and may be taxable to you as ordinary income or capital gain even though, from an investment standpoint, the distribution may constitute a return of capital. Distributions in cash may be reinvested automatically in additional whole shares of the fund only if the broker through whom you purchased shares makes such option available. Fund distributions
Dividends from net investment income, if any, are declared and paid quarterly.
With about 266 holdings, it effectively diversifies company-specific risk. A long-running debate in asset allocation circles is how much of a portfolio an investor should… Here is a look at ETFs that currently offer attractive income opportunities. View charts that break down the influence that fund flows and price had on overall assets. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies. It has amassed assets over $290.67 M, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.
NASDAQ US BROAD DIVIDEND ACHIEVERS INDEX
For funds on an annual dividend payment cycle, the dividend ex-date is the next business day following the third Friday of December, payable the last business day of the year. For funds on a quarterly dividend payment cycle, the dividend ex-date is the next business day following the third Friday of each March, June, September and December, payable the last business day of the month. For funds on a monthly beaxy exchange review dividend payment cycle, the dividend ex-date is the next business day following the third Friday of each month, payable the last business day of the month. The excel graph I constructed above illustrates a very strong image of how well PID’s management has diversified this fund. PID’s largest holdings lie within the communications sector, which amount to approximately 22.55% of the entire fund’s assets.
- Despite holding only dividend payers, the fund has been about as volatile as the benchmark MSCI EAFE index over the past five years.
- The $1.5 billion ETF has a trailing 12-month yield of 2.66%, or 75 basis points above the S&P 500.
- Regardless, there are better dividend ETFs for fund investors to choose from.
- Developed market stocks, and as such has potential appeal as an alternative to funds like EFA or VEA in a buy-and-hold portfolio.
- It has a great yield, cheaper P/E than its peers and it’s starting to focus more on its international operations including India.
In terms of growth, the U.S. led the way with $52 billion in increases. The Blue Chip Stocks list has 350+ stocks that belong to either the Dividend Achievers, Dividend Aristocrats, or Dividend Kings list. There is a similar group known as the Dividend Champions, which also have raised their dividends for 25+ consecutive years. Here is a look at ETFs that currently offer attractive income opportunities. This section compares the dividend yield of this ETF to its peers.
The figure above reveals PID’s top ten holdings in terms of a percentage of its total asset value. These holdings allow for an unique investment opportunity in a variety of countries. In addition, SNY has a portfolio of prescription drugs, vaccines, and generic healthcare products. The last holding I will discuss is Delhaize Group (DEG), which is a Belgium based food retailer, however individuals may recognize this as the company that owns Food Lion and/or Bloom.
Return Ranking – Calendar
PID is an exchange traded fund that provides a return that typically corresponds to the price and yield performance of the International Dividend Achievers TM Index. The fund invests a minimum of 90% of its total assets in an array of securities that construct the underlying index. This index consists of Global Depositary Receipts and American Depositary Receipts that are listed in the London Stock exchange.
Over five years, the ETF outpaced the EAFE index by an average of 2.7 percentage points per year. They are fairly diversified in the communications business and provide cable, Internet, and phone services in Canada and the US. I think Tim Hortons (THI) is an interesting choice – P/E 20.76 and yield 1.9%. But personally I think their coffee is horrible, and I don’t think they deserve to trade at a higher multiple than McDonalds (MCD).
The Company’s asset classes include money market, balanced, equity, fixed income and alternatives. Invesco’s client base includes public and private entities, unions, non-profit organizations, endowments, foundations, pension funds, financial institutions and sovereign wealth funds. The Invesco Dividend Achievers™ ETF (Fund) seeks to replicate, before fees and expenses, the NASDAQ US Broad Dividend Achievers™ Index (Index), which is designed to identify a diversified group of dividend-paying companies. Dividends help investors generate greater total return or cushion declines during down-markets. Dividends also offer investors a more attractive alternative to fixed-income assets in a stubbornly low interest rate environment.
ETF Database analysts have a combined 50 years in the ETF and Financial markets, covering every asset class and investment style. The team monitors new filings, new launches and new issuers to make sure we place each new ETF in the appropriate context so Financial Advisors can construct high quality portfolios. ETF Trends and ETF Database , the preeminent digital platforms for ETF news, research, tools, video, webcasts, native content channels, and more.
ETF Database Themes
While the ETF surprisingly features no exposure to Australia, one of the highest-yielding developed markets, the fund’s other international weights indicate it has legitimate dividend growth potential. Imagine that a stocks’ price-to-earnings ratio rises from 10 to 20 while earnings do not change. In the real world, paying twice as much for the same thing is not a ‘good deal’. With market cap weighting, the Dividend Achievers index would hold double its investment in the business that saw its P/E ratio double. PID tracks the International Dividend Achievers index, published by financial information firm Mergent.
(Delayed Data from NASDAQ) As of Oct 13, 2023 03:35 PM ET
Stocks combine for over 46% of the ETF’s weight, with another 13.6% going to the Canadian stocks. The Dividend Achievers list is best used as a starting point for finding high-quality dividend growth stocks. PFM has a higher expense xm group ratio, but before running historical performance numbers I would have expected PFM to outperform SPY. With equal weighting, if a company’s price-to-earnings ratio falls by 50%, the fund will have to buy more to keep weights equal.
Products Linked to the NASDAQ International Dividend Achievers Index
One of the first popular index ETFs, the PowerShares QQQs, which tracks the Nasdaq 100 index, launched in 1999. PID is currently trading around $15 per share and has a current alpha level of 5.13, which is an indication that PID is highly undervalued. At right above the market beta of one , it is safe to conclude that PID’s holding period returns reveal very little risk. PID’s management invests the funds capital in a wide variety of sectors including telecommunication services, energy, financials, consumer staples, consumer discretionary, healthcare industrials and materials. Figure 2 below provides a more specific break down of this allocation. Fund distributions
Dividends from net investment income, if any, are declared and paid either annually, quarterly or monthly, depending on the Fund.
Schedule monthly income from dividend stocks with a monthly payment frequency. Most of the firms that fit the mandate for the index happen to fall in the communication-services sector — 27% of the ETF’s assets are in that group (the fund has no sector-weighting limits or requirements). The fund also holds big stakes in energy stocks (19%), makers of consumer necessities (12%) and health care stocks (11%). Seven of the ETF’s top 10 holdings are oil or energy-related stocks, including the fund’s largest holding KazMunaiGas Exploration, Kazakhstan’s state-controlled energy giant. That one holding should not imply PID is risky at the country level.
The Fund will normally invest at least 90% of its total assets in dividend-paying common stocks and other securities that comprise the Index. The Index is designed to identify an international group of American Depository Receipts, Global Depositary Receipts and non-U.S. Common or ordinary stocks that have qualified as International Dividend Achievers™. These companies have increased their aggregate annual regular cash dividend payments consistently for at least each of the last five consecutive years. The Index is computed using the net return, which withholds applicable taxes for non-resident investors. The Fund and the Index are reconstituted annually in March and rebalanced quarterly in March, June, September and December.