PEY: A Comprehensive Guide To This Well-Established High-Yield Dividend ETF
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The Sunday Investor7.03K FollowersFollow5ShareSavePlay(23min)CommentsSummaryPEY tracks the Nasdaq US Dividend Achievers 50 Index, a collection of high-yielding companies that have increased dividends for at least ten consecutive years.Launched in December 2004, PEY's Index underwent an enhancement in September 2013 that substantially improved its diversification features. This change should improve its performance in large market drawdowns.Today, PEY's estimated dividend yield is 4.72%, the fourth-highest among all the U.S. Size & Style ETFs I track. Other high-yield alternatives include SCHD, RDIV, and FDL.In addition to its attractive income features, PEY has excellent exposure to the value factor, as it currently trades at an 11.76x forward P/E and 6.82x trailing P/CF ratio.This educational article reviews these strengths in closer detail, while also highlighting potential weaknesses in growth and quality that might limit returns moving forward. Guido Mieth/DigitalVision via Getty Images Introduction With a 4.85% trailing dividend yield, the Invesco High Yield Equity Dividend Achievers ETF (PEY) is one of the highest-paying U.S. dividend ETFs on the market, making it an attractive choice for investors seekingThis article was written byThe Sunday Investor7.03K FollowersFollowThe Sunday Investor is focused exclusively on U.S. Equity ETFs. He has a strong analytical background, has received a Certificate of Advanced Investment Advice from the Canadian Securities Institute, and has completed all the educational requirements for the Chartered Investment Manager designation.Having covered hundreds of ETFs on Seeking Alpha, The Sunday Investor has developed a complex, proprietary ETF Rankings system which he shares on his website, etf-rankings.com. Nearly 1,000 ETFs receive individual factor scores covering costs, liquidity, risk, size, value, dividends, growth, quality, momentum, and sentiment, which feed into an easy-to-understand composite score from 1-10.
The Sunday Investor is always active in the comments section in his articles - please don't hesitate to reach out via comment in any article or by visiting etf-rankings.com. Happy Investing!Analyst’s Disclosure:I/we have a beneficial long position in the shares of SPY, SCHD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You