FDD: An Ambivalent Perspective On The High Yielders Of Europe

The Alpha Sieve4.87K FollowersFollow5ShareSavePlay(11min)CommentsSummaryFDD targets 30 high-yielding European stocks, with supplementary screeners that call for a reasonable dividend payout ratio of 60%, and positive dividend growth over 5 years.Compared to other pockets in the world, FDD's dividend picture stands out, but relative to its own historical standards, it comes across as poor.FDD's financials-heavy portfolio could potentially prompt higher payouts going forward.FDD's price and risk-adjusted return performance over time is quite concerning, and it has been experiencing a loss of momentum over the past month,. stitched photography/iStock via Getty Images Introduction US-based investors who’d like exposure to dividend-themed ETFs that focus on stocks from across Europe have the option of pursuing around 5 different alternatives. Within this bucket, I’m going to focus on the First Trust STOXX European Select Dividend Index Fund (This article was written byThe Alpha Sieve4.87K FollowersFollowInvestment research, primarily oriented towards uncelebrated/under-covered stocks and ETFs, across North America, Latin America, Europe and Asia. Seeks to combine both fundamental and technical disciplines while making an investment/trading proposition.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.