DJD: Who Should Buy This 3.40% Yielding DJIA Dividend ETF

Summary

• DJD is the yield-weighted version of the Dow Jones Industrial Average. It's expected to yield 3.40%, has a low 0.07% expense ratio, and over $300 million in assets under management.
• While DJD's yield isn't a standout feature, its high profitability score is. Readers can weigh these attributes against some of DJD's weaknesses, including relatively low sales, earnings, and dividend growth.
• This article compares DJD's fundamentals against DIA, SCHD, and HDV. Markets may be close to, or already have, bottomed, and these higher-growth alternatives are better options in that scenario.
• DJD's low-volatility features indicate it will outperform in flat and declining markets. However, it's not as weatherproof as I'd like, so I've remained neutral.

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Investment Thesis

There's nothing fancy about the Invesco Dow Jones Industrial Average Dividend ETF (NYSEARCA:DJD), an appealing ETF for no-nonsense investors wanting a simple solution to satisfy their high yield, low volatility, and low valuation needs. DJD was among the top performers

Analyst’s Disclosure:I/we have a beneficial long position in the shares of SCHD either through stock ownership, options, or other derivatives. 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.