In this article, we discuss 5 dividend ETFs that Redditors are buying in August. If you want to read our detailed analysis of dividend ETFs and their performance this year, go directly to Redditors are Buying These 10 Dividend ETFs in August.
5. VictoryShares Dividend Accelerator ETF (NASDAQ:VSDA)
The VictoryShares Dividend Accelerator ETF (NASDAQ:VSDA) tracks the performance of large-cap dividend stocks that not only have a history of increasing dividends but also possess the probability of future dividend growth. As of August, the fund has net assets amounting to over $300.7 million and its net expense ratio stands at 0.35%. In the past year, the fund delivered a 0.09% return to shareholders, while its five-year returns came in at 77.3%, as of the close of August 10.
Apple Inc. (NASDAQ:AAPL) is the third-largest holding of the VictoryShares Dividend Accelerator ETF (NASDAQ:VSDA), representing 3.19% of its portfolio. On July 28, the company declared a quarterly dividend of $0.23 per share, consistent with its previous dividend. The company has raised its payouts for the past nine years. As of August 11, the stock’s dividend yield came in at 0.54%.
Berkshire Hathaway owned the largest stake in Apple Inc. (NASDAQ:AAPL) in Q1 2022, worth over $155.5 billion. In addition to this, 131 hedge funds monitored by Insider Monkey’s database owned stakes in the tech company in the first quarter of 2022, down from 134 in the previous quarter. The total value of those stakes was over $182 billion.
Wedgewood Partners mentioned Apple Inc. (NASDAQ:AAPL) in its recently-published Q2 2022 investor letter. Here is what the firm had to say:
“Apple grew revenues +9%, driven by +17% growth in the Services segment. While iPhone revenues grew a modest +5%, it was on an exceptional year ago comparison of +66%. iPhone continues to capture most industry smartphone profits by focusing on high-end price tiers. Apple is taking nearly two-thirds of the revenue share in the premium ($400 and above) smartphone segment. Further, most of the growth was driven by expansion in the “ultra-premium” price tier of $1000 or more per unit.[1] As we have highlighted in the past, Apple’s relentless focus on the development and integration between hardware (especially integrated circuits) and software continues to add significant value for customers of its products and services. We expect this favorable competitive dynamic to continue for the foreseeable future.
4. iShares Core Dividend Growth ETF (NYSE:DGRO)
The iShares Core Dividend Growth ETF (NYSE:DGRO) provides exposure to dividend stocks that have sustained dividend growth and are broadly diversified across industries. As of August 10, the fund’s total assets are valued at over $24 billion and it has an expense ratio of 0.08%. There are 414 dividend stocks in the fund’s portfolio and its 12-month trailing yield stood at 2.07%.
The iShares Core Dividend Growth ETF (NYSE:DGRO) was founded in 2014 and has delivered a 109.1% return to shareholders since then, while its 5-year returns came in at 64.3%, as recorded on August 10. Johnson & Johnson (NYSE:JNJ) is one of the fund’s most notable holdings, making up 2.59% of its portfolio. The company has been a strong dividend payer, raising its dividends consistently for the past 60 years. Its current quarterly payout stands at $1.13 per share, with a yield of 2.68%, as of August 11.
As of the close of Q1 2022, 83 hedge funds owned stakes in Johnson & Johnson (NYSE:JNJ), the same as in the previous quarter. The collective value of those stakes was over $7.4 billion.
3. JPMorgan Equity Premium Income ETF (NYSE:JEPI)
The JPMorgan Equity Premium Income ETF (NYSE:JEPI) invests in dividend stocks that show low volatility and the fund seeks to deliver monthly distributable income. It was founded in 2020 and has delivered a 14.5% return to shareholders since then. The JPMorgan Equity Premium Income ETF (NYSE:JEPI) has 118 stocks in its portfolio and its total assets amount to over $12 billion. Moreover, its 12-month rolling dividend yield came in at 8.7%.
Bristol-Myers Squibb Company (NYSE:BMY) is one of the most prominent holdings of the JPMorgan Equity Premium Income ETF (NYSE:JEPI), making up 1.48% of its portfolio. The company pays a quarterly dividend of $0.54 per share, with a dividend yield of 2.89% as of August 11. It has been raising its dividends for the past 16 years and has a safe payout ratio of 70%.
Over $2.4 billion worth of collective stakes in Bristol-Myers Squibb Company (NYSE:BMY) were held by 70 of the hedge funds tracked by Insider Monkey’s database as of Q1 2022. Two Sigma Advisors was the company’s leading shareholder in Q1, with stakes worth over $318.4 million.
Carillon Tower Advisers mentioned Bristol-Myers Squibb Company (NYSE:BMY) in its Q1 2022 investor letter. Here is what the firm had to say:
“Stock selection contributed the most while sector allocation was also positive. An underweight to communication services and an overweight to energy helped performance, while an underweight to consumer staples and an overweight to materials detracted. Stock selection was strong within healthcare and materials but was weak within information technology and industrials. Bristol-Myers Squibb (NYSE:BMY), the biopharmaceutical company, entered into accelerated share repurchase agreements.”
2. Invesco High Yield Equity Dividend Achievers ETF (NASDAQ:PEY)
The Invesco High Yield Equity Dividend Achievers ETF (NASDAQ:PEY) tracks the performance of dividend stocks that have strong dividend yields and hold strong records of consistent dividend growth. The fund regularly invests 90% of its total assets into dividend-paying stocks that comprise the index. Since the start of 2022, the fund has delivered a 1.35% return to shareholders, while it’s returned 4.5% in the last 12 months, as of the close of August 10.
The Invesco High Yield Equity Dividend Achievers ETF (NASDAQ:PEY) has 52 holdings in its portfolio with an average market cap of $48.3 million. A Virginia-based tobacco company, Altria Group, Inc. (NYSE:MO) is one of the fund’s most prominent holdings, constituting 2.90% of its portfolio. The company pays a quarterly dividend of $0.90 per share, with a dividend yield of 7.96%, as of August 11. It has been raising its dividends consistently for the past 52 years.
Altria Group, Inc. (NYSE:MO) was popular among elite funds in Q1 2022, as 47 hedge funds tracked by Insider Monkey’s database owned stakes in the company, up from 39 in the previous quarter. The collective value of those stakes was nearly $2 billion.
1. WisdomTree U.S. Quality Dividend Growth Fund (NASDAQ:DGRW)
The WisdomTree U.S. Quality Dividend Growth Fund (NASDAQ:DGRW) tracks the investment results of dividend-paying large-cap companies with growth characteristics in the U.S equity market. The fund has delivered a 148.6% return to shareholders since its inception in 2013, as of the close of August 10.
The Coca-Cola Company (NYSE:KO) is one of the major holdings of the WisdomTree U.S. Quality Dividend Growth Fund (NASDAQ:DGRW), making up 3.53% of its portfolio. The company pays a quarterly dividend of $0.44 per share and has a dividend yield of 2.78%, as of August 11. It has raised its dividend payments for 60 years in a row.
At the end of Q1 2022, 64 of the hedge funds that Insider Monkey closely monitors owned stakes in The Coca-Cola Company (NYSE:KO), down from 70 in the previous quarter. Those stakes were collectively valued at over $29 billion.
You can also take a look at 10 Best Dividend Stocks to Buy in 2022 and 10 Best REIT ETFs to Buy Now
