We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Analyst Blog Highlights iShares International Select Dividend ETF, Franklin International Low Volatility High Dividend Index ETF, Global X SuperDividend U.S. ETF, First Trust Morningstar Dividend Leaders ETF and First Trust STOXX European S
Read MoreHide Full Article
For Immediate Release
Chicago, IL – September 15, 2023 – Zacks.com announces the list of stocks and ETFs featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETFs recently featured in the blog include: iShares International Select Dividend ETF (IDV - Free Report) , Franklin International Low Volatility High Dividend Index ETF (LVHI - Free Report) , Global X SuperDividend U.S. ETF (DIV - Free Report) , First Trust Morningstar Dividend Leaders ETF (FDL - Free Report) and First Trust STOXX European Select Dividend ETF (FDD - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
4 Dividend ETFs On Sale Now
While the stock market has recorded an incredible rally in 2023, exceeding all expectations, its journey in the second half has been rough. The excitement for AI, the concentration of stocks in a few firms and still-present inflationary pressure indicate potential bubbles.
Although inflation has cooled from its highs last year, there is still a significant risk that it could rebound due to lingering economic pressures, such as rising oil prices on geopolitical concerns. If inflation rises again and interest rates increase, the sectors that have been driving the current stock market rally might experience pullbacks. If this was not enough, U.S. banking industry is far from stable.
The labor market is also showing signs of easing. Recent reports indicate consumers’ credit card balances surpassed $1 trillion and marked a record high. Moreover, a significant portion of credit card borrowers (51%) have been unable to pay off their entire balance each month, resulting in accruing interest (read: ETF Areas in Focus as US Credit Card Balance Crosses $1T).
Recent economic data releases have indicated a cooling labor market, raising hopes that the Federal Reserve may decide to maintain interest rates at their current levels during its September meeting. However, the CME FedWatch Tool revealed that there is 43.6% of participants (up from 33.5% one-week ago) confident that the Fed will hike rates by 25-bp in the November meeting.
Why High-Dividend ETFs Are Good Bets
High dividend ETFs can be a good investment during times of economic uncertainty, as they provide a steady source of income regardless of market conditions. These types of stocks and ETFs typically pay out a higher percentage of their profits as dividends than other stocks, which means that they can make up for the capital losses, if there is any.
Against this backdrop, below we highlight a few high-dividend ETFs that are on sale currently. The S&P 500 is off 0.2% past month.
ETFs in Focus
iShares International Select Dividend ETF
P/E: 5.41X
Yield: 7.36%
One-Month Return: negative 2.3%
Franklin International Low Volatility High Dividend Index ETF
P/E: 10.26X
Yield: 5.01%
One-Month Return: negative 0.51%
Global X SuperDividend U.S. ETF
P/E: 10.91X
Yield: 7.48%
One-Month Return: negative 2.2%
First Trust Morningstar Dividend Leaders ETF
P/E: 10.11X
Yield: 4.50%
One-Month Return: negative 1.7%
First Trust STOXX European Select Dividend ETF
P/E: 5.26X
Yield: 6.77%
One-Month Return: negative 3.6%
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
The Zacks Analyst Blog Highlights iShares International Select Dividend ETF, Franklin International Low Volatility High Dividend Index ETF, Global X SuperDividend U.S. ETF, First Trust Morningstar Dividend Leaders ETF and First Trust STOXX European S
For Immediate Release
Chicago, IL – September 15, 2023 – Zacks.com announces the list of stocks and ETFs featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETFs recently featured in the blog include: iShares International Select Dividend ETF (IDV - Free Report) , Franklin International Low Volatility High Dividend Index ETF (LVHI - Free Report) , Global X SuperDividend U.S. ETF (DIV - Free Report) , First Trust Morningstar Dividend Leaders ETF (FDL - Free Report) and First Trust STOXX European Select Dividend ETF (FDD - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
4 Dividend ETFs On Sale Now
While the stock market has recorded an incredible rally in 2023, exceeding all expectations, its journey in the second half has been rough. The excitement for AI, the concentration of stocks in a few firms and still-present inflationary pressure indicate potential bubbles.
Although inflation has cooled from its highs last year, there is still a significant risk that it could rebound due to lingering economic pressures, such as rising oil prices on geopolitical concerns. If inflation rises again and interest rates increase, the sectors that have been driving the current stock market rally might experience pullbacks. If this was not enough, U.S. banking industry is far from stable.
The labor market is also showing signs of easing. Recent reports indicate consumers’ credit card balances surpassed $1 trillion and marked a record high. Moreover, a significant portion of credit card borrowers (51%) have been unable to pay off their entire balance each month, resulting in accruing interest (read: ETF Areas in Focus as US Credit Card Balance Crosses $1T).
Recent economic data releases have indicated a cooling labor market, raising hopes that the Federal Reserve may decide to maintain interest rates at their current levels during its September meeting. However, the CME FedWatch Tool revealed that there is 43.6% of participants (up from 33.5% one-week ago) confident that the Fed will hike rates by 25-bp in the November meeting.
Why High-Dividend ETFs Are Good Bets
High dividend ETFs can be a good investment during times of economic uncertainty, as they provide a steady source of income regardless of market conditions. These types of stocks and ETFs typically pay out a higher percentage of their profits as dividends than other stocks, which means that they can make up for the capital losses, if there is any.
Against this backdrop, below we highlight a few high-dividend ETFs that are on sale currently. The S&P 500 is off 0.2% past month.
ETFs in Focus
iShares International Select Dividend ETF
P/E: 5.41X
Yield: 7.36%
One-Month Return: negative 2.3%
Franklin International Low Volatility High Dividend Index ETF
P/E: 10.26X
Yield: 5.01%
One-Month Return: negative 0.51%
Global X SuperDividend U.S. ETF
P/E: 10.91X
Yield: 7.48%
One-Month Return: negative 2.2%
First Trust Morningstar Dividend Leaders ETF
P/E: 10.11X
Yield: 4.50%
One-Month Return: negative 1.7%
First Trust STOXX European Select Dividend ETF
P/E: 5.26X
Yield: 6.77%
One-Month Return: negative 3.6%
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.