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High-Dividend ETF (HDV) Hits New 52-Week High
Investors seeking momentum may have High Dividend iShares Core ETF (HDV - Free Report) on radar now. The fund recently hit a new 52-week high. The fund is 20.5% from its 52-week low level.
But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.
High Dividend iShares Core ETF (HDV - Free Report)
The underlying Morningstar Dividend Yield Focus Index offers exposure to high quality U.S. domiciled companies that have had strong financial health and an ability to sustain above average dividend payouts. The expense ratio of HDV is 0.08%.
Why The Move?
Dividend stocks often beat their non-dividend paying counterparts amid market uncertainty. Stocks with high dividend point to quality investing — a pre-requisite to making money in a volatile environment. Even if there is capital loss, dividend payments make up for it to a large extent. This Zacks Rank #3 (Hold) HDV offers a juicy 3.37% yield annually. This benchmark-beating yield is quite lucrative at the current environment.
More Gains Ahead?
The ETF HDV has a positive weighted alpha of 17.73. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade further.