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High Yield Dividend ETF (PEY) Hits New 52-Week High

ByZacks Investment Research
Published 07/10/2016, 09:30 PM
Updated 10/23/2024, 11:45 AM
PEY
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For investors seeking momentum, PowerShares High Yield Equity Dividend Achievers Portfolio (TO:PEY) is probably on their radar now. The fund just hit a 52-week high and is up about 70.2% from its 52-week low price of $9.20/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:

PEY in Focus

This product offers exposure to the companies that have high dividend yield and consistent growth in dividends. Utilities, financials, consumer staples and energy are the top four sectors of the fund with a double-digit weight each. The fund charges 0.54% in expense ratio (see: Total Market U.S. ETFs here).

Why the Move?

The high dividend corner of the broad investing world has been an area to watch lately given the high levels of market volatility amid low interest rates. This is because dividend-paying securities are the major sources of consistent income for investors when returns from the equity market are at risk. This is especially true as a company that pays dividend generally acts as a hedge against economic uncertainty and provides downside protection by offering outsized payouts or sizable yields on a regular basis.

More Gains Ahead?

Currently, PEY has a Zacks ETF Rank of 2 or ‘Buy’ rating with a Medium risk outlook, suggesting continued outperformance in the months ahead. Further, many of the segments that make up this ETF have a strong Zacks Industry Rank, so there is definitely still some promise for those who want to ride on this surging ETF a little further.

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PWRSH-HY EQ DV (PEY): ETF Research Reports

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