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.
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 instaforex review 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.
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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.
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When I see a bank stock such as HDFC bank (HDB) with a 24.6 P/E and a 0.6 % yield I’m not really interested. I’ll choose a bank stock that isn’t even in this portfolio – Bank of Nova Scotia (BNS). Bank of Nova Scotia is the most international of Canada’s banks with branches forex broker listing and offices in more than 50 countries. PID is also attractively valued relative to the U.S. stocks with a P/E ratio of just 11.2 compared to about 17 for the S&P 500. The $1.5 billion ETF has a trailing 12-month yield of 2.66%, or 75 basis points above the S&P 500.
- DEG has operations in a wide variety of countries including Belgium, Bulgaria, Greece, United States, and Indonesia, which provide it with strong access to different markets.
- Only foreign companies that consistently increase payouts qualify for the PowerShares International Dividend Achievers ETF.
- Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund.
- Common or ordinary stocks that have qualified as International Dividend Achievers™.
- I’ll choose a bank stock that isn’t even in this portfolio – Bank of Nova Scotia (BNS).
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.
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.
Net Income Ratio Analysis
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, quantitative trading 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.
PID Valuation
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 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.
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This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.17% per year. These returns cover a period from January 1, 1988 through September 4, 2023. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return.
Stocks are weighted by yield and the index is rebalanced quarterly. The figure above reveals PID’s top ten holdings in terms of a percentage of its total asset value. PID provides the stability and diversification necessary for an investor who is risk adverse, yet still seeks exposure to foreign and emerging markets that have high prospects for growth. Through PID’s strong diversification across different markets, investors can be sure that by adding PID to their portfolio they are surely minimizing risk. Market returns are based on the midpoint of the bid/ask spread at 4 p.m. ET and do not represent the returns an investor would receive if shares were traded at other times.
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 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.
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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.
