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PEY: Dividend Growth Stocks With Double The Yield

Published Tue, 01 Dec 2020 12:56:43 -0500 on Seeking Alpha

Seeking AlphaETF AnalysisPEY: Dividend Growth Stocks With Double The YieldDec. 1, 2020 12:56 PM ET|| About: Invesco Exchange-Traded Fund Trust - Invesco High Yield Equity Dividend Achievers ETF (PEY), Includes: AZN, AZNCF, INPAP, IP, MRNA, NOBL, PFE, R, SPY, T, T.PA, T.PC, TBB, TBC, VZ, WYND, XOMby: Dave Dierking, CFADave Dierking, CFA ETF investing, portfolio strategy, Dividend Investing, retirementEtf Focus On The Street.Com.cls-1{fill:#024999;}SummaryUp until recently, dividend stock performance has been a mixed bag with high yielders being notable underachievers.
A COVID vaccine-inspired economic recovery in 2021 could put value stocks, dividend payers and cyclicals back into market leadership positions.
PEY is well-positioned in the themes that are poised to outperform over the next 12 months.
Requiring 10+ year dividend growth histories to qualify for the portfolio adds a degree of safety should the market turn sideways.
The current 4.5% dividend yield is well over double that of the S&P 500 and the Dividend Aristocrat universe.
Investment Thesis
Investing in the universe of Dividend Aristocrats remains one of the most popular income-producing strategies among investors. But they're usually not known for their high yields. The ProShares S&P 500 Dividend Aristocrats ETF (NOBL), perhaps one of the best benchmarks for this universe, yields just over 2%.
It doesn't have to be that way. The Invesco High Yield Equity Dividend Achievers ETF (PEY) provides exposure to long-term dividend growers and offers a yield of 4.6%, but it comes with some additional risks that investors should consider before jumping in.
In a market that has largely rewarded large-cap growth stocks up until recently, dividend ETF performance has been something of a mixed bag. As a whole, dividend stocks have underperformed the broader market, but there have been pockets of success.
Long-term dividend growers have generally achieved the best results. The... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
AT&T 38.38   16.1 2.38 2.04 5.43
INTERNATIONAL PAPER 42.33   10.8 3.93 2.00 4.85
EXXON MOBIL 71.98   17.3 4.15 3.48 4.83
RYDER SYSTEM 53.25   8.8 6.03 2.24 4.15
VERIZON COMM 60.43   15.8 3.83 2.46 4.04
PFIZER 37.28   17.0 2.19 1.44 3.85
ASTRAZENECA 42.90   49.3 0.87 0.88 2.03
SPDR S&P 500 ETF 301.29   0.0 0.00 5.42 1.82

AT&T - T
AT&T - T  

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