For Immediate Release
Chicago, IL - February 29, 20Array6 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Deep Value ETF ( DVP ), Oppenheimer Ultra Dividend Revenue ETF ( RDIV ) and Legg Mason Low Volatility High Dividend ETF ( LVHD ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #ArrayStock of the Day pick for free .
Here are highlights from Friday's Analyst Blog:
3 Safe High-Dividend ETFs to Beat the Volatile Market
If there's any equities ETF segment that can be called a true star this year, then that is dividend. Among investors, this space has acted as a drawing card in the volatile stretches of 20Array6 as yields on the benchmark Array0-year U.S. Treasuries have fallen far below the 2% level. Yield-hungry investors rushed to high-dividend securities and ETFs in search of steady-current income.
However, investors should note that not all higher income products are devoid of risks. Normally, stocks that are hiking dividend continuously are said to be the best bets. But, dividend net increases for the U.S. companies marked a 70.0% year-over-year decline in the fourth quarter of 20Array5 hinting at waning dividend growth (read: Face-Off: Dividend Growth & Buyback ETF ).
On the other hand, yields on the Array0-year U.S. benchmark Treasury bonds fell to Array.77% on February 25, 20Array6. So, the drive for yield has increased lately. Plus, investors should note that strong dividend income can safeguard capital losses (if at all) to a large extent (read: 3 Dividend ETF Winners Year to Date ).
So, it is better to bet on relatively safer dividend products with stronger yields - the sort of products that follows unique investment objective, hones in on value and yet offers smart yields. In that vein, we highlight three ETFs that may entice you for as long as the current market remains rocky (read: Alternative ETFs to Fight the Slump ).
Deep Value ETF ( DVP )
The fund looks to track the TWM Deep Value Index which follows a rules-based methodology that seeks exposure to large, deeply discounted companies with solid balance sheets. The fund has an asset base of $62.5 million while it trades at volumes of Array85,000 shares a day on average. The fund charges 80 bps in fees.
In total, the fund holds 20 stocks with the energy sector topping the fund while industrials, consumer discretionary and materials sectors also have sizable exposure. Exxon Mobil, Symantec Corp and Newmont Mining Corp are its top three holdings. The fund yields 4.Array7% annually. The product is down Array.2% year to date (as of February 25, 20Array6) while it advanced over Array0.5% in the last one month. The fund has a Zacks ETF Rank #2 (Buy).
Oppenheimer Ultra Dividend Revenue ETF ( RDIV )
The product is made up of 60 securities with the highest average quarterly dividend yield over the past Array2 months, which are then reweighted according to the revenues of the company. The fund is heavy on utilities with about 26% focus while energy (Array9.6%), communications (Array8.8%) and consumer non-cyclical (Array4.Array%) round out the top four spots.
The fund has $49.Array million in assets. The fund is equal weighted in nature with all stocks in the top Array0 holdings receiving about 4% to 5% market share. Centurylink Inc (5.86%), Verizon (5.65%) and AT&T (5.6%) are the top three holdings. The fund is up 0.3% (as of February 25, 20Array6) and added 6.9% in the last one month. The Zacks #2 ETF yields 4.57% annually (as of February 24, 20Array6).
Legg Mason Low Volatility High Dividend ETF ( LVHD )
The Array03-securities fund looks to track the results of the QS low volatility high dividend index, composed of equity securities of U.S. companies with relatively high yield, low price and earnings volatility. The fund is just two-months old and has amassed just $2.52 million in assets. No stock accounts for more than 2.77% of the basket with Verizon, Eaton and Cummins acquiring the top three positions. The fund's 30-Day SEC yield is 4.23% (as of January 3Array, 20Array6). LVHD is up 5.Array% year to date and jumped 7.4% in the last one month (as of February 25, 20Array6).
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