ETF Spotlight on WisdomTree Dividend ex-Financials (NYSEArca: DTN), part of an ongoing series.
Assets: $1.15 billion.
Objective: The WisdomTree Dividend ex-Financials fund tries to reflect the performance of the company’s own Dividend ex-Financials Index, which holds the highest dividend-yielding companies in each sector among three hundred of the largest companies in the WisdomTree Dividend Index outside financials.
Holdings: Top holdings include: Frontier Communications (NadaqGS: FTR) 3.6%, Southern Copper Corp. (NYSE: SCCO) 3.0%, Windstream Corp. (NasdaqGS: WIN) 2.6%, CenturyLink (NYSE: CTL) 2.3% and AT&T (NYSE: T) 1.7%.
What You Should Know:
- WisdomTree sponsors the fund.
- DTN has an expense ratio of 0.38%.
- The fund has 87 holdings.
- The ETF has a dividend yield of 3.55%.
- Sector allocations include: Utilities 13.2%, Consumer Staples 12.5%, Materials 12.2%, Telecom services 11.7%, Industrials 11.0%, Info Tech 10.5%, Health Care 10.1%, Consumer Discretionary 9.4% and Energy 9.0%.
- DTN is up 2.7% over the last month, up 7.4% over the past three months and up 14.5% over the past year.
The Latest News:
- Richard Helm, senior V.P. and manager of the Cohen & Steers Dividend Value Fund, believes there is still value in industrials, technology and consumer discretionary stocks, reports Johanna Bennett for Baron’s. On the other hand, he has underweighted telecom and utilities for a while.
- “More and more companies are reaching the level of critical mass and profitability necessary before returning cash to shareholders becomes an easier and enticing option,” Helm said. “You will see more companies paying dividends this year and more companies hiking those payments.”
- “Cyclical names with more modest payout ratios are more attractive,” Helm added. [Can Dividend ETFs Outperform Again After Stellar 2011?]
- Helm projects dividends will rise between 8% to 12% over 2012, with large-cap companies growing dividends faster than earnings. [ETF Spotlight: SPDR S&P Dividend ETF]
WisdomTree Dividend ex-Financials
For past stories in this series, visit our ETF Spotlight category.
Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.