PFM: A Dividend-Focused Fund That Is Light On Dividends And Growth

Crimson And Gold Research227 FollowersFollow5ShareSavePlay(11min)CommentsSummaryInvesco Dividend Achievers ETF targets US stocks with at least 10 consecutive years of dividend increases.PFM's yield is just 1.34%, only modestly above the S&P 500, and its distributions have declined for two years.The fund is diversified across major sectors but has low utility exposure and a high management fee.I rate PFM a Hold, citing underwhelming yield, declining distributions, and limited growth upside despite defensive qualities. PM Images/DigitalVision via Getty Images Dividends from many large-cap companies appear to be going the route of the Dodo bird. More companies are choosing to invest their profits back into their operations through capital expenditures or using them for stockThis article was written byCrimson And Gold Research227 FollowersFollowI have been involved in the financial world for over 20 years with experience as an advisor, teacher, and writer. I am a full believer in the free-market system and that financial markets are efficient with most stocks reflecting their real current value. The best opportunities for profits on individual stocks come from stocks that are less-widely followed by the average investor or from stocks that may not accurately reflect the opportunities that currently exist in their markets.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.