As the financial environment is going through a season of low investment returns, investors are seeking good monthly incomes from potential investments. The US dividend stock is one such latent fund that is igniting sparks out of the goody box! The start of the year has seen a slant towards the defensive stocks. They were trading at a higher P/E (Price Earnings Ratio) than the growth-oriented stocks, like the financial and industrials stocks.
This fund is recommended for those investors that want to play in the US dividend market with the ability to gain easy and feasible exposure of the diversity in the US region. However it is claimed that there needs to be a tolerance towards the choice in the Company preference. This portfolio claims to have low volatility that works as it best selling point. But it is important to understand that the dividend market has the best dishes on its platter, making it difficult to choose from. The strongest competitor is the one to survive the rat race and accumulate assets in its favor.
In order to be included in the respective index the constituents must have passed through the sieve which refers to meeting the liquidity criteria of $500 million as minimum market cap. This high yielding US stock offers very high yielding returns and along with this benefit of lower risks, it also offers a longer yielding assurance. This is quite a projected criterion for a fund that enables a vast exposure to fifty equally weighted equity securities that have the highest dividend yielding in the US. Another required characteristic to be entitled to be included in the Index is to have paid dividends consistently over the last two years. Only companies that have claimed to have beta of less than 0.85 relative to the S&P 500 are the ones that are held eligible for this criteria. Twenty five percent of the weights of the index are capped by the sectors and twenty percent capped by the MLPs.
The Fund provides a strong security charisma towards the investors, in case of any possible dividend cuts of the companies they would be pulled down from the index. But this is only applicable after the quarterly analysis of the Fund. So safety and security are the selling factors for the high yielding US stock with the surety that there would be a replacement of the holding that has been pulled down from the Index. The high demand in the dividend market has resulted in the initialization of the latest dividend fund to be laid in the dividend basket of eggs. This result itself helps to review the juicy fruits that are placed on the shelf at attractive prices!
Currently the Fund is heavily weighted towards the following top five constituents: LOCKHEED MARTIN, UNITED ONLINE, WORLD WRESTLING, NISKA GAS STORA and BRISTOL MYERS S which together hold an approximate 13.3%.
The recent political brinkmanship related to the US Federal government has led to a shutdown for the first time in 17 years. This development is likely to have its impact on their GDP but it is not expected to leave an impact on the less volatile US dividend mutual fund.
Global X Super Dividend US ETF [DIV] delivers as per the performance of the namesake INDXX Super dividend US Low Volatility index which holds 50 of highest yielding U.S. stocks, MLPs and REITs all in equal weights. This US dividend stock was launched on March 2013 with an expense ratio of 0.45%. The Maximum securities belonging to this benchmark for the US dividend mutual fund are listed with the Utilities, Mortgage REITs, MLPs, Telecommunication Services and Consumer Staples Sectors.