HDV: Exploring BlackRock iShares Core High Dividend ETF in 2024

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HDV - Market Position

Ticker Symbol Product Type Asset Class Strategy Payment Frequency Geographic Focus Expense Ratio Sponsor
HDV ETF Equity Dividend ETF High Dividend Yield Quarterly US
0.12% iShares by BlackRock

HDV - iShares Core High Dividend ETF

The iShares Core High Dividend ETF (HDV) is a popular exchange-traded fund (ETF) designed to provide investors with exposure to high-quality U.S. equities that offer attractive dividend yields. Managed by BlackRock, one of the world's largest asset management companies, HDV focuses on companies that have a history of consistent dividend payments and strong financial fundamentals.

HDV tracks the Morningstar Dividend Yield Focus Index, which selects stocks based on dividend yield, financial health, and dividend sustainability criteria. This index methodology aims to identify companies with the potential for sustainable dividend growth over time.

The ETF's portfolio typically includes large-cap and mid-cap stocks across various sectors, with a tilt towards sectors known for stable dividend payments, such as consumer goods, healthcare, and utilities. By diversifying across sectors, HDV aims to reduce risk while offering investors exposure to a broad range of dividend-paying companies.

Investors choose HDV for its potential to generate income through dividend payments while also seeking long-term capital appreciation. With a relatively low expense ratio and a quarterly dividend distribution schedule, HDV appeals to income-oriented investors looking for a passive investment vehicle that aligns with their income and growth objectives.

HDV - Price / Yield

HDV - Portfolio and Asset Allocation

The iShares Core High Dividend ETF (HDV) boasts a diverse portfolio comprising top holdings in various sectors. Energy stocks like Exxon Mobil Corp. (XOM) and Chevron (CVX) dominate the portfolio, contributing to 27.55% of the asset allocation. This allocation reflects HDV's focus on stable dividend-paying companies in sectors such as Consumer Defensive (17.97%), Healthcare (16.50%), and Technology (8.84%). These sectors are known for consistent earnings and cash flows, supporting their ability to sustain dividend payments.

Notable holdings like Johnson & Johnson (JNJ) in healthcare and Verizon Communications (VZ) in communication services add further diversification. The portfolio's tilt towards strong buy rated stocks like Merck & Company (MRK) and AbbVie (ABBV) indicates a focus on companies with solid financials and growth potential.

HDV's emphasis on dividend yield and payment consistency aligns with investor preferences for income generation. While the portfolio includes growth-oriented sectors like Technology, the majority of holdings are in defensive sectors, reflecting a balanced approach to risk and return.

Top 10 Holdings

As of April 2, 2024, the top 10 holdings of the Capital Group Dividend Value ETF (CGDV) are:

Name Weight
Exxon Mobil Corp. (XOM) 8.69%
Chevron (CVX) 6.65%
Verizon Communications (VZ) 5.83%
Johnson & Johnson (JNJ) 5.44%
Abbvie (ABBV) 5.17%
Philip Morris International (PM) 4.19%
Merck & Company (MRK) 4.10%
Pepsico (PEP) 3.82%
Coca-Cola Company (KO) 3.70%
Altria (MO) 3.59%

Asset Allocation

The Capital Group Dividend Value ETF (CGDV) has the following asset allocation as of April 2, 2024:

Sector Weight
Energy 27.5%
Information Technology 8.8%
Health Care 16.5%
Financials 7.0%
Consumer Discretionary 0.96%
Consumer Staples 17.97%
Materials 2.46%
Industrials 2.16%
Communication Services 8.07%
Utilities 8.44%

Dividend Yield and Distribution History

Section Details

HDV Dividend Information

The iShares Core High Dividend ETF (HDV) 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.

HDV Dividend Yield

As of April 2, 2024, the 30-day SEC yield for HDV is 3.5%. This means that for every $100 invested in the fund, investors would receive $3.50 in dividends per year, assuming the yield remains constant.

HDV Dividend History

HDV 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.

HDV Dividend Growth

HDV'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.

HDV Dividend Stability

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

HDV - Chart

HDV - Comparative Analysis

Let's compare HDV with prominent competitors, focusing on key aspects like performance, fees, and strategy: (as of Mar 22, 2024)

Investment Focus High-dividend-yielding, large-cap U.S. stocks High-quality, dividend-paying stocks of larger U.S. companies High-yielding, large-cap U.S. stocks
Current Yield 3.35% 1.54% 3.02%
Expense Ratio 0.08% 0.33% 0.06%
Investment Strategy Passively tracks the Morningstar Dividend Yield Focus Index Actively managed, focuses on attractively valued companies with consistent dividend growth potential Passively tracks the FTSE High Dividend Yield Index
Strengths Higher yield than CGDV and VYM, low expense ratio Potential for higher returns through active management, emphasis on dividend consistency and growth Low expense ratio, broad exposure to high-yield U.S. stocks
Weaknesses Less diversification than broader dividend ETFs, potentially higher volatility Higher expense ratio than passively managed funds, potentially higher volatility 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
Mar 20, 2024 $0.84 Mar 21, 2024 Mar 26, 2024
Dec 19, 2023 $0.98 Dec 20, 2023 Dec 26, 2023
Sep 26, 2023 $1.08 Sep 27, 2023 Oct 02, 2023
Jun 07, 2023 $0.80 Jun 08, 2023 Jun 13, 2023
Mar 22, 2023 $1.04 Mar 23, 2023 Mar 29, 2023


Technical Analysis

Additional Information and Risks

Conclusion and Risks:

Investing in HDV and similar ETFs offers the potential for dividend income and exposure to established companies within the fund's portfolio. However, it's crucial to consider certain risks and factors. Implied temperature rise and the company’s future emissions can impact the fund’s investment return and contribute to ESG-related concerns.

It's essential to review the fund’s investment objective or constraints to understand the investable universe and how the fund’s ITR metric is calculated. BlackRock and iShares ETFs provide returns, but market price fluctuations and management fees can affect investment value.

Data accuracy from third-party sources and ESG research should be verified, as estimation methods can vary. Investment performance is not guaranteed, and past performance does not ensure future returns. Risks include volatility, climate-related impacts, and industry shifts affecting thermal coal and oil sands revenue.

Consulting the fund prospectus and regulatory filings is advisable to understand investment strategies, valuation methods, and portfolio composition. Forward-looking climate metrics and Paris Agreement goals provide insight into sustainability efforts, but investment decisions should be based on comprehensive research and financial advice.