The Portfolio seeks to track the Morningstar U.S. Sustainability Dividend Yield Focus Index which targets high-yielding, qualified dividend-paying companies that score highly on environmental, social, and governance (ESG) investment criteria. Neither Morningstar, Inc. nor its investment management division markets, sells, or makes any representations regarding the advisability of investing in any investable product that tracks a Morningstar index. We take a look at the newest high-quality dividend payers in the index, and we take a closer look at an undervalued name. Inquiries regarding technical issues such as logging in or downloading 2023 Morningstar, Inc. All rights reserved. He holds a Bachelor's degree in finance form DePaul University, and he Narrow-moat Lloyds reported fourth-quarter underlying profits of GBP 1,973 million ahead of consensus expectations of GBP 1,847 million. Be among the first to receive the latest Morningstar Indexes analysis and perspectives. The "Net of Fees" performance shown reflects the deduction of a model fee equal to the maximum advisory fee that could be charged to the strategy through Morningstar Investment Services advisory program, brokerage or other commissions, and other expenses that a client paid in connection with the advisory services they received, and are calculated by deducting these fees from the gross returns. Our Dividend Yield Focus strategy looks at both backward-looking and qualitative forward-looking measures to find high-yielding stocks that are financially healthy enough to sustain their dividend. In Strategy Shares US Market Rotation Strategy ETF (HUSE)'s current portfolio as of -, the top 1 holdings are (), not including call and put options. 2023 Morningstar, Inc. All rights reserved. We provide a platform for our authors to report on investments fairly, accurately, and from the investors point of view. Despite these good results, focus revolved around lower net interest margin guidance for 2023. Distance to default uses option-pricing theory to measure whether a firm is falling into financial distress. 30 Day SEC Yield as of Feb 23, 2023 7.70% 12m Trailing Yield as of Feb 23, 2023 5.39% Standard Deviation (3y) as of Jan 31, 2023 9.73% Average Yield to Maturity as of Feb 23, 2023 8.19% Weighted Avg Coupon as of Feb 23, 2023 5.43 Weighted Avg Maturity as of Feb 23, 2023 5.57 yrs Effective Duration as of Feb 23, 2023 4.14 yrs also holds the Chartered Financial Analyst designation. Sector Exposure and Top Holdings Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into . Copyright 2023 Morningstar, Inc. All rights reserved. Get the latest Global Gaming Technologies Corp Dividend & Yield information from GuruFocus.com. There can be no assurance that any financial strategy will be successful.Common stocks are typically subject to greater fluctuations in market value than other asset classes as a result of factors such as a company's business performance, investor perceptions, stock market trends and general economic conditions.All Morningstar Stock Analyst Notes were published by Morningstar, Inc. Here are two additional ways to find dividend ETFs and mutual funds to investigate further. Edison's underlying growth driver is its $6 billion annual capital investment plan, in line with our forecast. Analyst ratings are not guarantees nor should they be viewed as an assessment of a stock's creditworthiness. He was the co-inventor of Morningstar's first investment advice At the time, we showed that proprietary metrics can screen out companies at risk of cutting their payout. So, like moat, distance to default is another important screen for this index. We also consider a company's Morningstar distance to default ratio, a metric that uses market information and accounting data to determine how likely a firm is to default on its liabilities. If a company is in distress, the dividend is at risk and there's trouble ahead. software. Similar to its U.K. peers, Lloyds lowered expectations on further sizable net interest income gains in 2023. The newly launched Morningstar Global Sustainable Activities Involvement Indexes are tools for impact-minded investors deploying capital in the public markets. Gear advertisements and other marketing efforts towards your interests. Semiconductor stocks took a beating in 2022, leaving many names trading at a discount. Provide specific products and services to you, such as portfolio management or data aggregation. Meanwhile, the indexes use company-level ESG risk assessments from Sustainalytics, a global leader in sustainable investing research. This is compared to the Banks - Southwest industry's yield of 1% and the S&P 500's current yield. New York Community Bancorp (NYCB) Narrow-moat NYCB's core strength is its expertise in the New York multifamily lending market, which was compiled through a series of acquisitions of New York-based thrifts from 2000 to 2007. We provide a platform for our authors to report on investments fairly, accurately, and from the investors point of view. At the time, we showed that. that created and launched Morningstar.com. Dividends are for everyone regardless of age. These products and services are usually sold through license agreements or subscriptions. While the structural hedge is expected to remain a significant benefactor for Lloyds over the medium term, the nature of maturities rolling onto higher yields only slowly and gradually means that short-term dynamics will weigh on NIM in 2023. Total fund flow is the capital inflow into an ETF minus the capital outflow from the ETF for a particular time period. Develop and improve features of our offerings. Are Dividend Stocks a Good Investment Today? Daily. document.write(day.getFullYear()); Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive. FRT Federal Realty Investment Trust Dividend yield : 4.02%. ESS Essex Property Trust Inc Dividend yield : 3.84%. The following table presents expense information for ETFs tracking the Morningstar Dividend Yield Focus Index. So, the yield on our Morningstar Global Dividend Yield Focus Index, for example is well above 4%. This site is protected by reCAPTCHA and the Google If a company is in distress, the dividend is at risk and there's trouble ahead. These stocks earn Morningstars lowest rating today and carry significant price risk. The Morningstar LSTA US Leveraged Loan Index, which measures the performance of the broad US leveraged loan market, has risen 3.58% in 2023 as of February 14. Quality insights for current income and income growth from stocks. Dow Jones Industrial Average, S&P 500, Nasdaq, and Morningstar Index (Market Barometer) quotes are real-time. endobj We think there could be additional upside in the stock if its valuation discount to peers closes. Marathon Petroleum (MPC) While its existing refining asset base is well positioned to capitalize on the ever-changing domestic crude market, Marathon Petroleum is investing to expand its midstream and retail businesses in an effort to diversify its earnings stream away from the more volatile refining business, says energy sector strategist Allen Good. Our Dividend Yield Focus strategy looks at both backward-looking and qualitative forward-looking measures to find high-yielding stocks that are financially healthy enough to sustain their dividend. Gear advertisements and other marketing efforts towards your interests. Read our editorial policy to learn more about our process. 16 min read. activities pertaining to a Morningstar, Inc. account invested in accordance with a strategy that This information does not constitute advice or a recommendation. A robust range of indexes across all major asset classes, styles, and strategies for making asset allocation decisions, benchmarking investment performance, and creating index-linked investable. We then apply the quality screens: We search the high-yielders for companies that have Morningstar Economic Moat Ratings of wide or narrow, meaning that we think they have competitive advantages that will allow them to continue to earn above-average profits and sustain their dividends for 20 or 10 years, respectively. The strategy seeks firms with wide or narrow moats that we believe (To read more about distance to default, click here.). We also respect individual opinionsthey represent the unvarnished thinking of our people and exacting analysis of our research processes. Dominion Energy (D) Dominion Energy recently changed its name from Dominion Resources. The markets highest yields often belong to the shares of troubled companies whose shareholder payouts are ultimately unsustainable. The goals are income, return, and ESG risk mitigation. Avoiding ESG risk is becoming ever more critical, as companies face pressure to deliver for all stakeholders. Verify your identity, personalize the content you receive, or create and administer your account. This site is protected by reCAPTCHA and the Google Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. In challenging conditions, The Law Debenture Corporation (LWDB) has reported robust 2022 results. Provide specific products and services to you, such as portfolio management or data aggregation. Learn more and start a seven-day free trial today. High-dividend stocks are typically from more mature businesses that choose to pay out profits rather than reinvest them. Indexes noted within the report are unmanaged, their returns do not include payment of any sales charges or fees an investor would pay to purchase securities, and cannot be invested in directly. To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research. The second group of dividend funds and ETFs focuses on what are called dividend-growth stocks. We keep up with the evolving needs of investors in a way that only Morningstar can: by leveraging our heritage as a trusted provider of data and research. Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. Many more these companies were removed because the company's distance to default ratio crept into a range that we weren't comfortable with. Yet dividends remain a fundamental pillar of equity investing. We suspect consumer price inelasticity continues to benefit the strength of bigger operators that boast superior service levels. Tax Rate data for other ETFs in the Large Cap Value Equities ETF Database Category is presented in the following table. The Morningstar Dividend Yield Focus IndexSM is designed to track high-yielding, qualified dividend-paying, U.S.-based securities screened for companies with superior quality and financial health. Fund flow information for other ETFs in the Large Cap Value Equities ETF Database Category is presented in the following table. The Week in Dividends contains all Analyst Notes that relate to holdings in Morningstar, Inc.'s Dividend Select Portfolio. Retirees and others looking to extract income from their investment portfolios rely on regular payouts, especially when bond yields are low. The 75 highest-yielding stocks that pass the quality screen are included in the index, and constituents are. 4% - 6% annual income growth. 2 0 obj Enjoy a 7-Day Free Trial Thru Mar 05, 2023! Dow Jones Industrial Average, S&P 500, Nasdaq, and Morningstar Index (Market Barometer) quotes are real-time. Wide-moat Medtronic's fiscal third-quarter results offered marked sequential improvement over anemic second-quarter performance. Perhaps even more impressive was the 34% growth seen in continuous glucose monitors -- a product and technology that has historically taken a backseat to insulin pumps at Medtronic. Earnings growth will be slower than rate base growth primarily due to financing costs while Edison works through several regulatory proceedings and finances its growth investments. 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