For investors seeking momentum, SPDR S&P Global Dividend ETF WDIV is probably on the radar. The fund just hit a 52-week high and is up 17.35% from its 52-week low price of $58.55/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:
WDIV in Focus
The underlying S&P Global Dividend Aristocrats Index measures the performance of high dividend-yield companies included in the S&P Global BMI that have followed a managed-dividends policy of increasing or stable dividends for at least 10 consecutive years. DIM has a dividend yield of 4.23%. The product charges 40 bps in annual fees (See: All Global Large-Cap Value Equity ETF).
Why the Move?
The dividend space of the market has been an area to watch lately, given the increasing uncertainty over tariffs and the escalating trade war. Dividend investing is an appealing strategy because it provides both security through regular payouts and stability by focusing on mature companies that are less prone to significant price fluctuations. Dividend-paying stocks are a reliable source of income, especially when returns from equity markets are uncertain.
More Gains Ahead?
Currently, WDIV has a Zacks ETF Rank #3 (Hold), with a Low risk outlook. However, it might continue its strong performance in the near term, with a positive weighted alpha of 13.56 (as per Barchart.com), which gives cues of a further rally.
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SPDR S&P Global Dividend ETF (WDIV): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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