Greetings!
Below please find the ETF Spotlight newsletter for
the week of September 20, 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 payouts. Feel free to share it with others who may be interested. |
In this week's issue
|
|
 Dividend payouts
- Chart of the week: Our Paltry Payouts
- Fund Focus: iShares Russell 2000 (IWM)
- Revisions, asset flows & short interest
- Dividend per share estimates, payout ratios and yields for major ETFs
- Market monitor - movers & categories
To download the full newsletter click here. |
| Chart of the week
|
|
Our Paltry Payouts
Next year dividend growth will once again trail earnings growth for U.S. stocks, pushing their payout ratios (DPS/EPS) well below that of foreign stocks.
This week's chart shows the payout ratio for stocks in the S&P500 (SPY), S&P MidCap 400 SPDR (MDY) and iShares Russell 2000 (IWM) funds versus payouts for other major foreign benchmarks. Not surprisingly, yields are also significantly lower on U.S. stocks as shown on page 4 of the full report.
Chart: 2011E Dividend Payout Ratio of Major U.S. and Foreign ETFs
For the S&P500 the trend towards lower payouts has been in place since at least 1950, and if estimates for 2011 are correct it will be a new low.
Chart: S&P500 Payout Ratio, 1950-2011E
Source: AltaVista Research
To download the full newsletter, click here. |
|
Fund Focus |
|
iShares Russell 2000 (IWM)
Earnings could more than double this year as both sales and margins recover but will likely remain well below the prior peak. In any case, IWM has one of the lowest ALTAR Scores of any broad market ETF we cover due to pricey multiples and the slim & inconsistent profitability of the many micro-cap stocks in the index. For small-cap exposure we much prefer the S&P SmallCap 600 (IJR).
To download the full newsletter, click here.
|
