ETF Spotlight: Serious Dividend Growth | ETF Trends

ETF Spotlight on the PowerShares Dividend Achievers Portfolio (NYSEArca: PFM), part of an ongoing series.

Assets: $346.4 million

Objective: The PowerShares Dividend Achievers Portfolio tries to reflect the performance of the NASDAQ US Broad Dividend Achievers Index, which is comprised of dividend paying companies that have increased their annual dividend for 10 or more consecutive fiscal years.

The underlying index is reconstituted annually in March and rebalanced quarterly in March, June, September and December.

Holdings: Top holdings include Johnson & Johnson (NYSE: JNJ) 4.2%, Chevron Corp (NYSE: CVX) 4%, Wal-Mart Stores (NYSE: WMT) 4%, Procter & Gamble (NYSE: PG) 4% and Exxon Mobil (NYSE: XOM) 4%.

What You Should Know:

  • Invesco PowerShares sponsors the ETF.
  • PFM has a 0.58% expense ratio.
  • The ETF has 239 components, and the top holdings make up 35.1% of the portfolio.
  • Sector allocations include consumer staples 22.6%, energy 16.1%, industrials 14.7%, information tech 11.4%, health care 8.1%, consumer discretionary 7.1%, financials 6.3%, materials 5.2%, utilities 5.0% and telecom services 3.4%.
  • Market capitalization include mega-cap 51.0%, large-cap 34.4%, mid-cap 12.3%, small-cap 2.1% and micro-cap 0.2%.
  • PFM is up 2.7% over the past month, up 2.7% over the past three months and up 14.1% over the past year.
  • The fund is trading 5.6% above its 200-day exponential moving average.
  • Focusing on companies with a track record of steadily increasing dividend payouts, PFM tracks a group of high-quality, stable stocks.

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