DJD: Unveiling Invesco's Dow Jones Industrial Average Dividend ETF
DJD - Market Position
| Ticker Symbol | Product Type | Asset Class | Strategy | Payment Frequency | Geographic Focus | Expense Ratio | Sponsor |
|---|---|---|---|---|---|---|---|
| DJD | ETF | Equity Dividend ETF | Dividend Yield | Quarterly | US | 0.50% | Invesco |
DJD Overview - The Invesco Dow Jones Industrial Average Dividend ETF
The Invesco Dow Jones Industrial Average Dividend ETF (DJD) is an equity dividend ETF offered by Invesco. It aims to track the performance of the Dow Jones Industrial Average Dividend Index, which consists of high-quality dividend-paying companies from various sectors in the US market.
DJD focuses on companies with a consistent history of paying dividends, making it an attractive option for income-seeking investors. Its investment strategy revolves around capturing the dividend income potential of these companies while providing diversification across industries.
With a payment frequency of quarterly dividends, investors can expect regular income distributions from DJD. Its geographic focus is primarily on the US market, offering exposure to domestic dividend-paying stocks.
The ETF has an expense ratio of 0.50%, making it a cost-effective choice for investors looking to access a diversified portfolio of dividend stocks within the Dow Jones Industrial Average.
In summary, DJD provides investors with an opportunity to invest in high-quality dividend-paying companies within the Dow Jones Industrial Average, offering potential income and diversification benefits.
DJD - Price / Yield
DJD - Portfolio and Asset Allocation
The DJD (Invesco Dow Jones Industrial Average Dividend ETF) portfolio is strategically diversified across various sectors, reflecting a balanced approach to capturing dividend income while managing risk.
Key holdings such as 3M Company (MMM) and Verizon Communications (VZ) contribute significantly to the ETF's performance, with their strong dividend yields providing stability and income for investors.
Other notable holdings like Chevron (CVX) and Johnson & Johnson (JNJ) add sectoral diversity, enhancing the resilience of the portfolio against market fluctuations.
The asset allocations reveal a well-rounded mix, with substantial weightage in Industrials and Healthcare, showcasing the ETF's focus on established sectors with reliable dividend-paying companies.
Overall, DJD's holdings and portfolio composition reflect a prudent investment strategy aimed at delivering consistent dividend income while mitigating risks through sectoral diversification.
Top 10 Holdings
As of May 13, 2024, the top 10 holdings of the Invesco Dow Jones Industrial Average Dividend ETF (DJD) are:
| Name | Weight |
|---|---|
| 3M Company (MMM) | 9.84% |
| Verizon Communications (VZ) | 9.68% |
| Dow Inc. (DOW) | 7.49% |
| Chevron (CVX) | 6.76% |
| Amgen Inc (AMGN) | 5.31% |
| Coca-Cola Company (KO) | 4.89% |
| Goldman Sachs Group (GS) | 4.73% |
| Cisco (CSCO) | 4.57% |
| International Business Machines Corporation (IBM) | 4.36% |
| Johnson & Johnson (JNJ) | 3.95% |
Asset Allocation
The Invesco Dow Jones Industrial Average Dividend ETF (DJD) has the following asset allocation as of May 13, 2024:
| Sector | Weight |
|---|---|
| Industrials | 15.28% |
| Health Care | 15.22% |
| Financials | 13.44% |
| Information Technology | 12.58% |
| Communication Services | 10.77% |
| Consumer Staples | 10.43% |
| Consumer Discretionary | 8.05% |
| Materials | 7.49% |
| Energy | 6.76% |
Dividend Yield and Distribution History
| Section | Details |
|---|---|
DJD Dividend Data |
The DJD (Invesco Dow Jones Industrial Average Dividend ETF) pays quarterly dividends. The most recent ex-dividend date was on March 18, 2024, with a dividend payment of $1.65 per share on March 18, 2024. |
DJD Dividend Yield |
As of March 18, 2024, the 30-day SEC yield for DJD is 3.43%. This means that for every $100 invested in the fund, investors would receive $3.43 in dividends per year, assuming the yield remains constant. |
DJD Dividend History |
DJD 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. |
DJD Dividend Growth |
DJD'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. |
DJD Dividend Stability |
DJD 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. |
DJD - Chart
DJD - Comparative Analysis
Let's compare DJD with prominent competitors, focusing on key aspects like performance, fees, and strategy: (as of May 2024)
| DJD | XYLD | SPYD | |
|---|---|---|---|
| Investment Focus | Dividend-paying stocks of Dow Jones Industrial Average companies | Covered call strategy on high-dividend-yielding stocks | High-dividend-yield S&P 500 stocks |
| Current Yield | 3.43% | 8.27% | 4.14% |
| Expense Ratio | 0.25% | 0.60% | 0.07% |
| Investment Strategy | Covered call strategy on Dow Jones Industrial Average stocks | Covered call strategy on high-dividend stocks | Tracks the S&P 500 High Dividend Yield Index |
| Strengths | Focus on high-quality, dividend-paying Dow Jones Industrial Average companies | Higher yield with covered call strategy | Lower expense ratio, diversified exposure to high-dividend S&P 500 stocks |
| Weaknesses | Lower yield compared to competitors | Higher expense ratio | Potential for lower returns in a rising interest rate environment |
Dividend History (Last 5 distributions)
| Ex-Dividend Date | Cash Amount | Record Date | Pay Date |
|---|---|---|---|
| Mar 18, 2024 | $0.43 | Mar 19, 2024 | Mar 22, 2024 |
| Dec 18, 2023 | $0.41 | Dec 19, 2023 | Dec 22, 2023 |
| Sep 18, 2023 | $0.40 | Sep 19, 2023 | Sep 22, 2023 |
| Jun 20, 2023 | $0.41 | Jun 21, 2023 | Jun 23, 2023 |
| Mar 20, 2023 | $0.38 | Mar 21, 2023 | Mar 24, 2023 |
News
Technical Analysis
Additional Information and Risks
The DJD ETF offers investors exposure to a basket of dividend-paying equity securities of companies included in the Dow Jones Industrial Average™. As an annualized fund, it tracks the dividend payout performance of these blue-chip companies, providing a potential avenue for income-focused investors.
However, investors should consider several risks associated with the DJD. The fund's payout ratio and annual dividend yield can fluctuate, influenced by market conditions and the performance of its underlying securities. The payout and performance of the DJD are subject to regulatory oversight, including compliance with the Investment Company Act of 1940.
Technical analysis and fund metrics products can provide insights into the DJD's fund flows and portfolio management. However, past performance is not a guarantee of future results, and investors should exercise caution and conduct thorough research before making investment decisions.
ESG research from MSCI ESG provides environmental, social, and governance data, aiding investors in evaluating the fund's classification and governance practices. It's essential to note that ETFs like DJD are non-diversified, focusing on specific sectors and potentially exposing investors to greater market volatility.