CGDV Dividend: Uncover the Dividend Yield Potential of the Capital Group Dividend Value ETF
CGDV - Market Position
| Ticker Symbol | Product Type | Asset Class | Strategy | Payment Frequency | Geographic Focus | Expense Ratio | Sponsor |
|---|---|---|---|---|---|---|---|
| CGDV | ETF | Equity Dividend ETF | High Dividend Yield | Quarterly | US Domestic |
0.33% | Capital Group |
CGDV Overview - The Capital Group Dividend Value ETF
The Capital Group Dividend Value ETF (CGDV) is an actively managed fund that seeks to produce income exceeding the average yield on U.S. stocks generally and to provide an opportunity for growth of principal consistent with sound common stock investing. The fund invests at least 90% of its assets in equity securities of companies with market capitalizations greater than $4.0 billion, primarily in dividend-paying stocks of larger, established companies domiciled in the United States.
CGDV's investment adviser uses a fundamental approach to identify attractively valued companies that have the potential to deliver consistent dividend growth. The fund's portfolio is divided into segments managed by individual managers who make their own investment decisions, allowing for diversification.
As of Apr 02, 2024, CGDV had an average yield of 1.54%, according to Morningstar. People also follow CGDV's latest stock price and dividend history on platforms like TipRanks.
While past performance does not guarantee future results, CGDV's focus on high-quality, dividend-paying stocks of larger companies may appeal to investors seeking income that exceeds the average yield of the broader market, along with the potential for long-term growth of principal.
CGDV - Price / Yield
CGDV - Portfolio and Asset Allocation
The Capital Group Dividend Value ETF (CGDV) is a fund focusing on large-cap, dividend-paying stocks across various sectors. The top 10 holdings reveal a mix of companies from different industries, such as technology (Broadcom Inc., Microsoft Corp.), industrials (General Electric Co., RTX Corp., Carrier Global Corp.), healthcare (Abbott Laboratories), and consumer staples (Philip Morris International Inc., British American Tobacco PLC).
The asset allocation further reinforces the fund's diversification strategy, with investments spread across multiple sectors. Industrials (22.9%) and Information Technology (19.3%) make up the largest allocations, followed by Health Care (14.3%) and Financials (8.8%). This sector distribution suggests that the fund managers seek to balance income generation and growth potential while managing risk through exposure to a variety of industries.
The presence of companies like Broadcom Inc., Microsoft Corp., and Philip Morris International Inc. among the top holdings indicates a focus on established, dividend-paying companies with strong market positions. These companies often have a history of consistent dividend payouts and are generally considered to be more stable investments.
However, it's important to note that the fund also has exposure to sectors like Communication Services (4.8%) and Energy (3.7%), which can be more volatile and sensitive to market conditions. Nonetheless, the relatively lower allocations to these sectors suggest that the fund managers are cautious about overexposure to potentially risky areas.
Top 10 Holdings
As of April 2, 2024, the top 10 holdings of the Capital Group Dividend Value ETF (CGDV) are:
| Name | Weight |
|---|---|
| Broadcom Inc. | 7.1% |
| General Electric Co. | 5.7% |
| Microsoft Corp. | 5.2% |
| RTX Corp. | 5.0% |
| American International Group, Inc. | 3.6% |
| Meta Platforms, Inc. | 3.6% |
| Carrier Global Corp. | 3.6% |
| Philip Morris International Inc. | 3.3% |
| British American Tobacco PLC | 2.7% |
| Abbott Laboratories | 2.7% |
Asset Allocation
The Capital Group Dividend Value ETF (CGDV) has the following asset allocation as of April 2, 2024:
| Sector | Weight |
|---|---|
| Industrials | 22.9% |
| Information Technology | 19.3% |
| Health Care | 14.3% |
| Financials | 8.8% |
| Consumer Discretionary | 7.2% |
| Consumer Staples | 6.8% |
| Materials | 5.7% |
| Communication Services | 4.8% |
| Energy | 3.7% |
| Utilities | 2.8% |
Dividend Yield and Distribution History
| Section | Details |
|---|---|
CGDV Dividend Data |
The Capital Group Dividend Value ETF (CGDV) pays quarterly dividends. The most recent ex-dividend date was on March 28, 2024, with a dividend payment of $0.0995 per share on April 02, 2024. |
CGDV Dividend Yield |
As of April 2, 2024, the 30-day SEC yield for CGDV is 1.81%. This means that for every $100 invested in the fund, investors would receive $1.81 in dividends per year, assuming the yield remains constant. |
CGDV Dividend History |
CGDV has a history of paying quarterly dividends. The dividend payments may fluctuate based on the performance of the underlying dividend-paying stocks held by the fund. |
CGDV Dividend Growth |
CGDV's dividend payments are dependent on the dividend growth and performance of the underlying stocks in the fund's portfolio. The fund's investment strategy focuses on companies with a history of consistent dividend growth, which may contribute to increasing dividend payments over time. However, dividend growth is not guaranteed. |
CGDV Dividend Stability |
CGDV aims to provide a relatively stable income stream by investing in high-quality, dividend-paying stocks of larger U.S. companies. However, the dividend payments are not guaranteed and may be affected by changes in market conditions or the performance of the underlying stocks in the fund's portfolio. |
CGDV - Chart
CGDV - Comparative Analysis
Let's compare CGDV with prominent competitors, focusing on key aspects like performance, fees, and strategy: (as of Mar 2024)
| CGDV | VYM | HDV | |
|---|---|---|---|
| Investment Focus | High-quality, dividend-paying stocks of larger U.S. companies | High-yielding, large-cap U.S. stocks | High-dividend-yielding, large-cap U.S. stocks |
| Current Yield | 1.54% | 3.02% | 3.35% |
| Expense Ratio | 0.33% | 0.06% | 0.08% |
| Investment Strategy | Actively managed, focuses on attractively valued companies with consistent dividend growth potential | Passively tracks the FTSE High Dividend Yield Index | Passively tracks the Morningstar Dividend Yield Focus Index |
| Strengths | Potential for higher returns through active management, emphasis on dividend consistency and growth | Low expense ratio, broad exposure to high-yield U.S. stocks | Higher yield than CGDV and VYM, low expense ratio |
| Weaknesses | Higher expense ratio than passively managed funds, potentially higher volatility | Less emphasis on dividend growth, potentially lower returns than actively managed funds | Less diversification than broader dividend ETFs, potentially higher volatility |
Dividend History (Last 5 distributions)
| Ex-Dividend Date | Cash Amount | Record Date | Pay Date |
|---|---|---|---|
| Mar 28, 2024 | $0.0995 | Apr 1, 2024 | Apr 2, 2024 |
| Dec 27, 2023 | $0.1668 | Dec 28, 2023 | Dec 29, 2023 |
| Sep 28, 2023 | $0.1165 | Sep 29, 2023 | Oct 2, 2023 |
| Jun 29, 2023 | $0.1186 | Jun 30, 2023 | Jul 3, 2023 |
| Mar 30, 2023 | $0.0913 | Mar 31, 2023 | Apr 3, 2023 |
News
Technical Analysis
Additional Information and Risks
When considering investing in the CGDV fund, it's essential to review the CGDV dividend history and payout ratio to understand the fund's stock dividend performance. While the fund aims to provide income that exceeds the average yield on stocks in the S&P 500, it's important to note that the fund is less diversified and may be subject to greater volatility than more diversified mutual funds.
As an actively managed fund, CGDV's performance relies on the fund adviser's ability to select attractively valued companies with consistent dividend growth potential. The basic investment philosophy of the management company is to invest in equity assets of investment-grade companies with market capitalizations greater than $4.0 billion.
Investors should carefully review the fund's prospectus and consider the information contained herein before making any investment decisions. The fund may invest up to 10% of its assets in non-U.S. companies, which may expose investors to additional risks. Additionally, as a nondiversified fund, CGDV may invest a larger portion of its assets in a smaller number of issuers, potentially increasing risk for shareholders.
When conducting a CGDV analysis, investors should consider various metrics such as dividend data, payout ratio, and earnings per share. It's also important to compare the fund's performance to equivalent funds and benchmarks like the MSCI index. Keep in mind that while the fund invests in stocks of companies with a history of paying dividends, there is no guarantee that these companies will continue to pay or increase their dividends in the future.
As with any equity investment, the value of the fund's shares may fluctuate with market conditions and company performance. Past performance does not guarantee future results, and investors should consider their individual risk tolerance and financial goals before investing. Always consult with a financial advisor and review the fund's SEC filings for the most up-to-date information and risks associated with trading CGDV shares.