Published Wed, 03 Jul 2019 11:49:04 -0400 on Seeking Alpha
As equities are hitting new highs, it is becoming harder for fund investors to ignore higher price-to-earning ratios of equity funds. The Invesco S&P 500® High Dividend Low Volatility ETF (SPHD) is simply being ignored due to recent under-performance compared to the S&P 500 (SPY). This is creating an interesting opportunity for long-term investors to rotate into an ETF that is yielding a much higher dividend then the S&P 500. Lets take a look at the recent under-performance of SPHD vs. SPY:
Data by YCharts
As you can see from the above chart, the SPHD started lagging the S&P 500 around April of this year. This is creating an opportunity for dividend focused investors to buy some shares.
SPHD is offering investors a P/E ratio of 14.31 vs. the S&P 500 of 21.96
What prompted me to take a look at the P/E ratio of SPHD was a recent conversation with a fellow low volatility investor, who expressed concern with the higher P/E ratios of the equity markets. Lets take a look at what Invesco has provided us here with the recent fund characteristics:
Price/Earnings Ratio: 14.31 Price/Book Ratio: 2.00 ROE: 17.33% Please note that these numbers are based on March 31st, as we do not have June 30th numbers yet.
SEC 30 day yield of 4.63%
The biggest draw of attention to this fund is clearly the high dividend yield. Coming in at 4.63%, the SPHD is yielding over double that of the S&P 500.
SEC 30 Day Yield: 4.63% Distribution Rate: 4.37%... Read more
|Stock name||Last trade||P/E||Earnings/Share||Dividend/Share||Dividend yield|
|SPDR S&P 500 ETF||301.29||0.0||0.00||5.42||1.82|
Older articles featuring Spdr S&p 500 Etf (SPY):Weekly High Frequency Indicators: Yield Curve Boosts Long-Term Forecast, Consumer Still Solid
Weekly Review: High-Yield CEFs - The Recession Worries Left The Sector In Negative Territory
My K.I.S.S. Dividend Growth Portfolio: 3rd Quarter 2019 Update
S&P 500 'Earnings Yield' Back To 6% With New Quarter
MLPX: Investing In Solid Midstream Fundamentals, But Without The High Yield
S&P 500's Top 30 Highest-Yielding Stocks
Weekly Review: High-Yield CEFs - PCF Announced Its Dividend For The Next 3 Months
How To Play The 20% Yielding 2X Leveraged mREIT ETNs
Why The U.S. Yield Curve Reliably Predicts U.S. Recessions
Global Yields For Stocks And Bonds