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10 High-Dividend ETFs Available at Cheaper Valuation
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The year 2022 as a whole could easily be attributed to the Russia-Ukraine war, red-hot inflation and rising-rate worries. No wonder, such worries caused an upheaval in the market this year. In Q1, Wall Street witnessed its worst performance in two years.
Year to date, the Dow, the S&P 500 and Nasdaq are all deep in correction territory (down at least 10% from the previous record high), with the Nasdaq getting a massive battering as the tech-heavy index is in the red (down at least 20% from the previous high).
The downfall is showing no signs of abating. Heightened rising rate worries amid super-hawkish cues from the Fed have bummed out Wall Street this year. Overall, the S&P 500 is down 16.3% in 2022. The Nasdaq Composite is off 27%, the Dow Jones has lost about 14% while the Russell 2000 has skidded 21% year to date.
The benchmark treasury yield hovered in the range of as high as 2.78% to 3.12% this month on faster Fed rate hikes. Against this backdrop, dividend ETFs acted as a great safety. Be it a bull or a bear market, investors mostly love dividend-paying stocks. After all, who doesn’t like a steady stream of current income along with capital appreciation?
Even if the stock or the fund falls, higher current income would go a long way in protecting investors’ total returns. After all, high-dividend ETFs provide investors with avenues to make up for capital losses, if that happens at all.
Why Pick Low P/E High-Dividend ETFs?
Dividend ETFs, specially the high-yield ones, have gained in valuation this year as investors preferred these over other sorts of investments. iShares Core High Dividend ETF (HDV - Free Report) has amassed about $2.24 billion in assets so far from Feb 1, 2022 while dividend aristocrat (with a record of raising dividends for a prolonged period of time) SPDR S&P Dividend ETF (SDY - Free Report) has lost about $702.3 million in assets in the same timeframe. The S&P 500 SPDR ETF (SPY - Free Report) has lost about $8.39 billion in assets.
Hence, looking for low P/E dividend ETFs that yield handsomely could be some investors’ choice. The SPDR S&P 500 ETF (SPY - Free Report) currently is trading at a P/E of 21.70X. Below, we highlight a few high-dividend ETFs that are trading at a pretty lower valuation as compared with SPY. These dividend ETFs mostly have global exposure, but yield massively.
ETFs in Focus
First Trust Dow Jones Global Select Dividend Index Fund (FGD - Free Report) – Yields 4.68%; P/E: 7.80X
First Trust STOXX European Select Dividend Index Fund (FDD - Free Report) – Yields 3.60%; P/E: 8.07X
Vanguard International High Dividend Yield ETF (VYMI - Free Report) – Yields 3.67%; P/E: 8.70X
Global X SuperDividend ETF (SDIV - Free Report) – Yields 7.76%; P/E: 9.03X
Image: Bigstock
10 High-Dividend ETFs Available at Cheaper Valuation
The year 2022 as a whole could easily be attributed to the Russia-Ukraine war, red-hot inflation and rising-rate worries. No wonder, such worries caused an upheaval in the market this year. In Q1, Wall Street witnessed its worst performance in two years.
Year to date, the Dow, the S&P 500 and Nasdaq are all deep in correction territory (down at least 10% from the previous record high), with the Nasdaq getting a massive battering as the tech-heavy index is in the red (down at least 20% from the previous high).
The downfall is showing no signs of abating. Heightened rising rate worries amid super-hawkish cues from the Fed have bummed out Wall Street this year. Overall, the S&P 500 is down 16.3% in 2022. The Nasdaq Composite is off 27%, the Dow Jones has lost about 14% while the Russell 2000 has skidded 21% year to date.
The benchmark treasury yield hovered in the range of as high as 2.78% to 3.12% this month on faster Fed rate hikes. Against this backdrop, dividend ETFs acted as a great safety. Be it a bull or a bear market, investors mostly love dividend-paying stocks. After all, who doesn’t like a steady stream of current income along with capital appreciation?
Even if the stock or the fund falls, higher current income would go a long way in protecting investors’ total returns. After all, high-dividend ETFs provide investors with avenues to make up for capital losses, if that happens at all.
Why Pick Low P/E High-Dividend ETFs?
Dividend ETFs, specially the high-yield ones, have gained in valuation this year as investors preferred these over other sorts of investments. iShares Core High Dividend ETF (HDV - Free Report) has amassed about $2.24 billion in assets so far from Feb 1, 2022 while dividend aristocrat (with a record of raising dividends for a prolonged period of time) SPDR S&P Dividend ETF (SDY - Free Report) has lost about $702.3 million in assets in the same timeframe. The S&P 500 SPDR ETF (SPY - Free Report) has lost about $8.39 billion in assets.
Hence, looking for low P/E dividend ETFs that yield handsomely could be some investors’ choice. The SPDR S&P 500 ETF (SPY - Free Report) currently is trading at a P/E of 21.70X. Below, we highlight a few high-dividend ETFs that are trading at a pretty lower valuation as compared with SPY. These dividend ETFs mostly have global exposure, but yield massively.
ETFs in Focus
First Trust Dow Jones Global Select Dividend Index Fund (FGD - Free Report) – Yields 4.68%; P/E: 7.80X
First Trust STOXX European Select Dividend Index Fund (FDD - Free Report) – Yields 3.60%; P/E: 8.07X
Vanguard International High Dividend Yield ETF (VYMI - Free Report) – Yields 3.67%; P/E: 8.70X
Global X SuperDividend ETF (SDIV - Free Report) – Yields 7.76%; P/E: 9.03X
Invesco KBW Premium Yield Equity REIT ETF (KBWY - Free Report) – Yields 5.52%; P/E: 9.23X
iShares Asia/Pacific Dividend ETF DVYA – Yields 4.51%; P/E: 9.87X
Global X MSCI SuperDividend EAFE ETF (EFAS - Free Report) – Yields 4.66%; P/E: 11.17X
Invesco KBW High Dividend Yield Financial ETF (KBWD - Free Report) – Yields 6.69%; P/E: 13.03X
Invesco S&P 500 High Dividend Low Volatility ETF (SPHD - Free Report) – Yields 3.65%; P/E: 13.85X
SPDR Portfolio S&P 500 High Dividend ETF (SPYD - Free Report) – Yields 4.88%; P/E: 14.38X