FTHI Dividend: Exploring First Trust BuyWrite Income ETF's Dividend History, Date, and Overview for Dividend Yield

Author Image By Michael D Ashley

FTHI - Market Position

Ticker Symbol Product Type Asset Class Strategy Payment Frequency Geographic Focus Expense Ratio Sponsor
FTHI ETF Equity Dividend ETF High Dividend Yield Quarterly Global 0.55% First Trust

FTHI Overview - The First Trust BuyWrite Income ETF

The First Trust BuyWrite Income ETF (FTHI) is a meticulously managed investment vehicle aimed at generating income surpassing the average yield on U.S. stocks while maintaining potential for principal growth. This ETF allocates at least 90% of its assets into equity securities of companies with market capitalizations exceeding $4.0 billion, primarily focusing on dividend-paying stocks of established U.S. domiciled corporations.

Employing a fundamental approach, FTHI's investment adviser meticulously selects attractively valued companies capable of consistent dividend growth. The portfolio is structured into segments, each managed by individual managers empowered to make independent investment decisions, thereby ensuring diversification.

As of April 2, 2024, FTHI boasted an average yield of 1.54%, as reported by Morningstar. Investors keenly track its latest stock price and dividend history via platforms like TipRanks.

While past performance doesn't guarantee future results, FTHI's strategy of investing in high-quality, dividend-paying stocks of larger companies holds appeal for investors seeking income surpassing the market average yield, coupled with potential long-term principal growth.

FTHI - Price / Yield

FTHI - Portfolio and Asset Allocation

The First Trust BuyWrite Income ETF (FTHI) is a fund focusing on large-cap, dividend-paying stocks across various sectors. Its portfolio comprises a diverse mix of companies, including those in technology (Microsoft, Nvidia Corporation, Amazon.Com, Inc.), industrials (Stellantis N.V.), healthcare (Meta Platforms, Inc.), and consumer staples (Meta Platforms, Inc.).

The asset allocation of FTHI underscores its diversification strategy, with significant allocations in Industrials (22.9%) and Information Technology (19.3%), followed by Health Care (14.3%) and Financials (8.8%). This sector distribution reflects FTHI's focus on balancing income generation and growth potential while managing risk through exposure to various industries.

Notably, FTHI includes companies like Microsoft among its top holdings, emphasizing its commitment to established, dividend-paying companies with strong market positions. These companies typically offer consistent dividend payouts and are perceived as stable investments.

Despite its exposure to sectors such as Communication Services (4.8%) and Energy (3.7%), which may experience higher volatility, FTHI's relatively lower allocations in these areas indicate a cautious approach to mitigating risks associated with market conditions.

Top 10 Holdings

As of May 3, 2024, the top 10 holdings of the First Trust BuyWrite Income ETF (FTHI) are:

Name Weight
Microsoft 7.08%
Apple Inc 4.67%
Nvidia Corporation 4.57%
U.S. Dollar 4.36%
Amazon.Com, Inc. 3.73%
Alphabet Inc. Class A 2.30%
Meta Platforms, Inc. 2.19%
Alphabet Inc. Class C 1.96%
Berkshire Hathaway B 1.71%
Stellantis N.V. 1.66%

Asset Allocation

The First Trust BuyWrite Income ETF (FTHI) has the following asset allocation as of May 3, 2024:

Sector Weight
Technology 26.17%
Consumer Cyclical 12.07%
Healthcare 11.92%
Financial 11.64%
Communication Services 9.62%
Consumer Defensive 9.21%
Energy 6.52%
Industrials 4.69%
Real Estate 3.65%
Basic Materials 2.58%
Utilities 1.84%
General 0.10%

Dividend Yield and Distribution History

Section Details

FTHI Dividend Data

The First Trust BuyWrite Income ETF (FTHI) pays monthly dividends. The most recent ex-dividend date was on April 15, 2024, with a dividend payment of $0.25 per share on April 30, 2024.

FTHI Dividend Yield

As of April 30, 2024, the annual dividend yield for FTHI is 4.2%. This means that for every $100 invested in the fund, investors would receive $4.20 in dividends per year, assuming the yield remains constant.

FTHI Dividend History

FTHI 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.

FTHI Dividend Growth

FTHI'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.

FTHI Dividend Stability

FTHI aims to provide a relatively stable income stream by investing in high-quality, dividend-paying stocks. 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

FTHI - Comparative Analysis

Let's compare FTHI with prominent competitors, focusing on key aspects like performance, fees, and strategy: (as of Apr 2024)

Investment Focus High-quality, dividend-paying stocks of larger U.S. companies High-yielding, large-cap U.S. stocks High-dividend-yielding, low volatility U.S. stocks
Current Yield 4.2% 3.02% 3.24%
Expense Ratio 0.70% 0.06% 0.30%
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 S&P 500 High Dividend Low Volatility 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 Low expense ratio, reduced volatility compared to other high-dividend ETFs
Weaknesses Higher expense ratio than passively managed funds, potentially higher volatility Less emphasis on dividend growth, potentially lower returns than actively managed funds Less emphasis on dividend growth, potentially lower returns than actively managed funds

Dividend History (Last 5 distributions)

Ex-Dividend Date Cash Amount Record Date Pay Date
Apr 30, 2024 $0.17 Apr 23, 2024 Apr 24, 2024
Mar 28, 2024 $0.16 Mar 21, 2024 Mar 22, 2024
Feb 29, 2024 $0.16 Feb 21, 2024 Feb 22, 2024
Jan 31, 2024 $0.16 Jan 23, 2024 Jan 24, 2024
Dec 29, 2023 $0.15 Dec 22, 2023 Dec 26, 2023


Technical Analysis

Additional Information and Risks

In the ever-evolving landscape of 2024, the First Trust BuyWrite Income ETF (FTHI) emerges as a beacon for investors navigating the complexities of dividend investing. As an exchange-traded fund (ETF) listed on U.S. exchanges, FTHI strategically deploys an innovative option strategy, consisting of writing call options on the standard index, to optimize returns and mitigate risk. This approach, coupled with its robust portfolio of equity securities, ensures a diversified investment vehicle that caters to both income-seeking and growth-oriented investors.

FTHI's commitment to shareholder value is evident through its meticulous dividend strategy. With a focus on consistent payouts and a quarterly dividend schedule, FTHI provides investors with a reliable income stream. The fund's dividend history, dividend yield range, and payout ratio serve as crucial metrics for evaluating its performance and assessing potential returns.

Moreover, FTHI's real-time trading data, dividend summary, and latest stock price offer investors valuable insights into market conditions and trends. By leveraging these tools, investors can make informed decisions and capitalize on emerging opportunities in the market.

Beyond its dividend-centric approach, FTHI also prioritizes transparency and investor education. Its comprehensive FAQ section, dividend data calculator, and dividend investing insights empower investors with the knowledge and resources needed to navigate the intricacies of dividend investing successfully.

As investors seek stability and growth in their portfolios, FTHI stands as a reliable choice, offering a compelling blend of income generation, capital appreciation potential, and risk management strategies. With its unwavering commitment to shareholder value and innovative investment approach, FTHI continues to pave the way for dividend investing excellence in 2024 and beyond.