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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.
Overview
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 |