Unlocking Dividend Potential: Exploring DIVO, the Amplify CWP Enhanced Income ETF
DIVO - Market Position
| Ticker Symbol | Product Type | Asset Class | Strategy | Payment Frequency | Geographic Focus | Expense Ratio | Sponsor |
|---|---|---|---|---|---|---|---|
| DIVO | ETF | Equity Dividend ETF | Income | Monthly | Global | 0.79% | Amplify ETFs |
DIVO Overview - Amplify CWP Enhanced Dividend Income ETF
DIVO, an acronym for "Dividend and Income ETF," represents a strategic approach to investment focused on generating consistent income streams. Managed by Amplify ETFs, DIVO is designed to provide investors with exposure to dividend-paying equities from a global perspective. This exchange-traded fund (ETF) seeks to optimize income generation while maintaining a balance between risk and return.
At its core, DIVO aims to amplify dividend income through its unique methodology. By selecting high-quality dividend-paying stocks and employing an income-focused strategy, DIVO offers investors the potential for steady cash flow, making it an attractive option for income-oriented portfolios.
One of the distinguishing features of DIVO is its monthly payment frequency, providing investors with regular income distributions. Moreover, DIVO's global geographic focus allows for diversification across various markets, potentially reducing overall portfolio risk.
With an expense ratio of 0.79%, DIVO aims to deliver value to investors by keeping costs low while maximizing income potential. Whether seeking to supplement existing income or build a diversified portfolio centered around dividend income, DIVO presents itself as a compelling option for investors looking to enhance their income streams in today's dynamic market environment.
DIVO - Price / Yield
DIVO - Portfolio and Asset Allocation
The DIVO ETF boasts a diverse portfolio comprising prominent companies across various sectors, reflecting its commitment to delivering consistent dividend income while balancing risk. Holding stalwarts like Microsoft (MSFT) and Apple Inc (AAPL), DIVO maintains exposure to technology giants, constituting approximately 29.11% of its sector breakdown. These tech behemoths not only offer stability but also exhibit potential for growth, contributing to DIVO's income-generation strategy.
Moreover, healthcare stocks, including Abbvie (ABBV) and Johnson & Johnson (JNJ), collectively account for 16.69% of DIVO's portfolio. With a focus on healthcare innovation and essential products, these companies present opportunities for steady dividends amid market fluctuations.
Diversification is further enhanced through exposure to consumer goods (Procter & Gamble, Coca-Cola), industrials (Home Depot), and financials (Broadcom, Nvidia), among others. This diversified approach helps mitigate sector-specific risks while tapping into a broad spectrum of income-generating opportunities.
The selection of high-quality companies with robust dividend histories underscores DIVO's commitment to income-focused investing. Additionally, the portfolio's premium status, indicating positive analyst sentiment and potential upside, adds to its appeal for income-seeking investors.
In summary, DIVO's holdings reflect a well-balanced blend of income-generating assets across sectors, positioning it as a compelling choice for investors seeking consistent dividends and potential capital appreciation within a diversified ETF framework.
| Name | Weight |
|---|---|
| Microsoft | 8.11% |
| Apple Inc | 4.40% |
| Broadcom Inc. | 3.70% |
| AbbVie | 3.69% |
| Johnson & Johnson | 3.44% |
| Procter & Gamble Company | 2.93% |
| Home Depot | 2.88% |
| Nvidia Corporation | 2.79% |
| Coca-cola Company | 2.55% |
| Pepsico | 2.23% |
DIVO Dividend Yield and Distribution History
| Section | Details |
|---|---|
DIVO Dividend Information |
The Amplify CWP Enhanced Dividend Income ETF (DIVO) pays monthly dividends. The most recent ex-dividend date was on March 26, 2024, with a dividend payment of $0.15488 per share on March 28, 2024. |
DIVO Dividend Yield |
As of April 12, 2024, the dividend yield for DIVO is 4.82%. This means that for every $100 invested in the fund, investors would receive $4.82 in dividends per year, assuming the yield remains constant. |
DIVO Dividend History |
DIVO has a history of paying monthly dividends. The dividend payments may fluctuate based on the performance of the underlying dividend-paying stocks held by the fund. |
DIVO Dividend Payout & Dividend Payout Ratio |
As an ETF, DIVO does not have a dividend payout ratio like individual stocks. The fund distributes a portion of its net investment income (NII) and realized capital gains to shareholders in the form of monthly dividends, after deducting expenses. |
DIVO Dividend Growth |
DIVO'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. |
DIVO Dividend Stability |
DIVO aims to provide a relatively stable income stream by investing in high-quality, dividend-paying stocks across various sectors. 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. |
DIVO - Chart
DIVO - Comparative Analysis
Let's compare DIVO with prominent competitors, focusing on key aspects like performance, fees, and strategy: (as of Apr 2024)
| DIVO | NOBL | VIG | |
|---|---|---|---|
| Investment Focus | Global dividend-paying equities with an emphasis on income | S&P 500 companies with at least 25 consecutive years of dividend growth | U.S. companies with at least 10 consecutive years of dividend growth |
| Current Yield | 4.62% | 1.98% | 1.92% |
| Expense Ratio | 0.79% | 0.35% | 0.06% |
| Investment Strategy | Focuses on global dividend income, actively managed | Passively tracks the S&P 500 Dividend Aristocrats Index | Passively tracks the NASDAQ US Dividend Achievers Select Index |
| Strengths | Global exposure, emphasis on dividend income, actively managed | Invests in companies with a long history of dividend growth, potential for lower volatility | Broad exposure to U.S. dividend growth stocks, low expense ratio |
| Weaknesses | Higher expense ratio compared to NOBL and VIG | Higher expense ratio than DIVO and VIG, potentially lower yield | Lower yield than DIVO, companies with shorter dividend growth history compared to NOBL |
DGRO Dividend History (Last 5 distributions)
| Ex-Dividend Date | Cash Amount | Record Date | Pay Date |
|---|---|---|---|
| Mar 25, 2024 | $0.15 | Mar 26, 2024 | Mar 27, 2024 |
| Feb 26, 2024 | $0.15 | Feb 27, 2024 | Feb 28, 2024 |
| Jan 28, 2024 | $0.15 | Jan 29, 2024 | Jan 30, 2024 |
| Dec 26, 2023 | $0.15 | Dec 27, 2023 | Dec 28, 2023 |
| Nov 27, 2023 | $0.14 | Nov 28, 2023 | Nov 29, 2023 |
News
Technical Analysis
Conclusion and Risks
In conclusion, the Amplify CWP Enhanced Dividend Income ETF (DIVO) offers investors a balanced approach to generating income through a combination of dividend-paying U.S. securities and exchange-traded covered call options. Managed by Amplify Investments LLC, DIVO strategically combines dividend and option income strategies to provide high levels of total return on a risk-adjusted basis. The fund seeks to lower overall market volatility while opportunistically utilizing sector allocation and market capitalization metrics to enhance returns. Under normal circumstances, DIVO consists of writing covered calls on a diversified portfolio of exchange-traded equity securities, aiming to capture additional income through option premiums. Managed by Penserra Capital Management LLC, DIVO is designed to offer high levels of total return while serving as an efficient income-generating security for investors seeking enhanced dividend income portfolios.
However, it's important to note the inherent risks associated with DIVO. The fund is non-diversified, meaning it may be more susceptible to fluctuations in the value of its investments due to changes in market conditions or the performance of specific sectors. Additionally, the use of call options exposes the fund to the risk of capital loss if the underlying securities' prices rise above the strike price. Investors should carefully consider DIVO's turnover, next ex-dividend dates, and the latest stock prices, as well as the potential impact of dividend data and payment dates on the fund's performance. Overall, while DIVO offers a compelling option strategy, investors should conduct thorough research and consult with a financial advisor to assess their risk tolerance and investment objectives before investing.