In the world of dividends, there’s a key distinction investors must understand, CFRA’s Todd Rosenbluth told CNBC’s “ETF Edge” on Monday.
“We at CFRA view things from a dividend growth perspective and a dividend yield perspective,” said Rosenbluth, his firm’s senior director of ETF and mutual fund research.
“ETFs tend to be focused on how the company pays a dividend and how that yield is part of the portfolio,” he said. “Dividend growth ETFs are more forward-looking. These are companies with either earnings power to have historically paid a dividend or the earnings power to continue to grow and raise that dividend as opposed to the more defensive-laden dividend-yield ETFs.”
The popular ProShares S&P 500 Dividend Aristocrats ETF (NOBL) and SPDR S&P Dividend ETF (SDY) are examples of dividend growth ETFs, Rosenbluth said. Read more…..
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CNBC’s Frank Holland breaks down the latest headlines impacting the exchange-traded fund space with Jay Jacobs, senior vice president and head of research and strategy at Global X ETFs, and Todd Rosenbluth, senior director of ETF and mutual fund research at CFRA.
