Greetings!
Below please find the ETF Spotlight newsletter for
the week of May 17th, containing highlights of the research and
data on www.etfresearchcenter.com
as well as a recap of the past week's action in the ETF market. The focus of this week's edition is dividend growth and payout ratios. Feel free to share it with others who may be interested. |
In this week's issue
|
|
 Dividend growth and payout ratios
- Chart of the week: ETFs with the fastest DPS growth
- Fund Focus: Utilities Select Sector SPDR (XLU)
- Revisions, asset flows & short interest
- DPS estimates, payout ratios and yields for major ETFs
- Market monitor - movers & categories
To download the full newsletter click here. |
| Chart of the week
|
|
ETFs with the fastest DPS growth
Accelerating sales  |
If the dividend cuts of the recent past are a sign of the severity of the credit crisis, rising dividends may be a sign of confidence in the future. Unfortunately for firms in the S&P500, DPS are expected to eek out only marginal gains this year and next, an indication of the recovery's tepid nature. In a search for more convincing signs of fundamental strength we screened our database for ETFs with the fastest expected dividend growth in 2010. Two ETFs showing triple-digit gains are the result of easy comparisons to near-zero levels. Beyond them, however, there are several Tech-related and Emerging Market ETFs will rapid dividend increases expected this year. To download the full newsletter, click here. |
|
Fund Focus |
|
Utilities Select Sector SPDR (XLU)
Both sales and earnings should return to growth this year in concert with the overall economy, and valuations remain modest resulting in an above-average ALTAR Score. However, the outlook is particularly clouded by potential policy changes, from cap-and-trade emissions limits, nuclear permitting, investments in alternative sources, and higher taxes on dividends, which at half of earnings are a very important part of the investment thesis for the sector.
To download the full newsletter, click here.
|
