DGRW also represents a compelling alternative to traditional S&P 500 funds, particularly at a time when valuations on U.S. stocks look a little stretched.
“If their portfolio mimics the S&P, they will have stocks that pay a 1.89% dividend, trade for 20 times forward earnings and have an ROE of 13.8%. Or they can take the other path, which displays ROEs that are significantly higher than those of the S&P, with a lower P/E (18.9) and a higher dividend yield (2.19%),” according to WisdomTree.
The $2 billion DGRW pays a monthly dividend.
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Tom Lydon’s clients own shares of DGRW.