PID has been rising steadily since I began buying it, but the current yield is still 2.85% as compared to 1.69% for the S&P 500, and volatility is lower, so I remain enthusiastic about accumulating shares of PID by means of dollar-cost averaging.
PID seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Mergent International Dividend Achievers Index.
“To become eligible for inclusion in the International Dividend Achievers Index a stock must be incorporated outside the United States, trade on the NYSE, NASDAQ or AMEX, and have increased its annual regular dividend payments for the last five or more consecutive years. In addition, Mergent requires that a stock’s average daily cash volume exceed $500,000 dollars in the two month period prior to reconstitution.” The portfolio is rebalanced quarterly and reconstituted annually.
According to charts provided on Powershares’ website, PID’s strategy would have outperformed the S&P 500 and the MSCI-EAFE indexes over the past ten years.
Most of the fund’s assets are concentrated in large-cap value stocks, but small and mid-cap value and growth stocks are also included. The financial sector has the greatest portfolio weight at 34%.
The top ten holdings as of 10/18/2006 are:
Endesa S.A. 5.23%
A.F.P. Provida S.A. 4.59%
Telstra Corp. Ltd. 3.55%
Lloyds TSB Group PLC 3.41%
Unilever PLC 3.05%
Huaneng Power Intnl. Inc. 2.86%
Volvo AB 2.69%
National Grid PLC 2.56%
National Australia Bank Ltd. 2.55%
Barclays PLC 2.44%