The WisdomTree U.S. Quality Dividend Growth Fund (NASDAQ:DGRW) utilizes a fundamentals-based approach to select promising stocks with sustainable dividends and prospects of earnings growth. The fund offers exposure to a universe of mostly large-cap
DGRW: Yield Sacrificed For Quality And Growth
Summary
- DGRW utilizes a fundamentals-based approach to select promising stocks with sustainable dividends and prospects of earnings growth.
- DGRW's exposure to value stocks is limited since only 62 names have a B- Value Grade or better.
- Despite the fund's focus on long-term EPS dynamics, there are not that many pure-play growth names in the portfolio.
- Only 36 stocks with a 19% share of the net assets have a Growth Grade above B-. 10 companies, including NDAQ and LOW, have an A+ rating.
- Thanks to the sector mix and EPS growth- and quality-focused methodology, DGRW looks nicely positioned to benefit from the economic recovery and expansion.
Vasily Zyryanov is an individual investor and writer.He uses various techniques to find both relatively underpriced equities with strong upside potential and relatively overappreciated companies that have inflated valuation for a reason.In his research, he pays much attention to the energy sector (oil & gas supermajors, mid-cap, and small-cap exploration & production companies, the oilfield services firms), while he also covers a plethora of other industries from mining and chemicals to luxury bellwethers.He firmly believes that apart from simple profit and sales analysis, a meticulous investor must assess Free Cash Flow and Return on Capital to gain deeper insights and avoid sophomoric conclusions.While he favors underappreciated and misunderstood equities, he also acknowledges that some growth stocks do deserve their premium valuation, and its an investor's primary goal to delve deeper and uncover if the market's current opinion is correct or not.
Analyst’s Disclosure:I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.