With many dividend exchange-traded funds easily outpacing broader benchmarks, such as the S&P 500 this year, a logical deduction would be that some of these ETFs are home to richly valued stocks. That is true of some dividend ETFs, particularly those with heavy weights to the consumer staples and utilities sectors.
Things Are Not Always As They Appear
Investors have overtly favored defensive, low beta sectors this year, leading to frothy multiples for high-yielding staples and utilities names. Dividend investors looking for compelling valuations might be surprised about where to turn: mid- and small-cap dividend payers. Perhaps it was surprising to some investors when the WisdomTree MidCap Dividend Fund (ETF) (NYSE: DON) and the WisdomTree SmallCap Dividend Fund (NYSE: DES) were highlighted as post-Brexit safety ideas.
/www.benzinga.com/trading-ideas/long-ideas/16/06/8170085/on-valuation-these-dividend-etfs-are-bargains alt=On Valuation, These Dividend ETFs Are Bargains>Full story available on Benzinga.com
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