DIVB: Steady Amid Macro Volatility, Reiterate Buy, 2.8% Yield

2025-05-09 22:51:47 ET

Summary

• I maintain a buy rating on iShares Core Dividend ETF due to its attractive valuation, strong dividend growth, and substantial increase in assets under management.
• DIVB's portfolio is heavily weighted towards large-cap value stocks, with significant exposure to Information Technology and Financials, offering a lower-beta, income-focused investment.
• The ETF's PEG ratio has improved, with a P/E of 14.8x and long-term EPS growth rate of 8.7%, making it reasonably valued.
• Technical analysis shows resistance around $49, but bullish seasonal trends and strong support levels suggest potential for a new bull market.

Stocks have done just fine so far this year. Yes, a handful of the Mag 7 names and domestic small caps have suffered, but global equities are up big. Moreover, more value-oriented US shares are about flat in 2025. ...

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