It’s been mentioned that previous efficiency is just not a assure of future outcomes. However many dividend methods display screen strictly for historic dividend progress with none forward-looking indication of an organization’s means to maintain – a lot much less develop – its dividends. A extra smart method consists of each historic and forward-looking elements to display screen for high-quality dividend-growers.
Within the upcoming webcast, ETF Methods for Rising Dividends from Excessive High quality Firms, Dan Waldron, Senior Vice President, ETF Strategist, First Belief, will clarify what dividend progress has to say about an organization’s monetary power and self-discipline and look to the sectors which might be positioned for above-average progress.
Particularly, buyers seeking to diversify their dividend portfolios can contemplate the First Belief Rising Dividend Achievers ETF (NasdaqGS: RDVY).
The First Belief Rising Dividend Achievers ETF tracks the NASDAQ US Rising Dividend Achievers Index, which holds 50 U.S. giant caps which have been screened for his or her high quality and dividend progress whereas eliminating REITs from consideration.
Reasonably than emphasizing pure yield or an organization’s historical past of elevating payouts, the ETF focuses on metrics like earnings, debt-to-equity, and payout ratios to evaluate not solely an organization’s means to maintain its present dividend, however develop it over time. That positions the First Belief fund to capitalize on what’s an more and more constructive payout surroundings.
To be eligible for inclusion within the index, corporations will need to have paid a dividend within the trailing twelve-month interval higher than the dividend paid within the trailing twelve-month interval three and 5 years prior, present a constructive earnings per share in the newest fiscal yr higher than the earnings per share three fiscal years prior, have a cash-to-debt ratio higher than 50%, and include a trailing twelve-month interval payout ratio no higher than 65%.
Monetary advisors who’re focused on studying extra about dividend investments can register for the Tuesday, August three webcast right here.
Learn extra on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the creator and don’t essentially replicate these of Nasdaq, Inc.