The O'Shares FTSE Russell Small
Cap Quality Dividend ETF tracks an index of US small - cap stocks weighted for exposure to quality, low volatility, and high yield factors.
Not exact matches
That means weighting stocks in an index by
qualities such as earnings, cash flow,
dividends and book values rather than the sheer size of their market
caps.
We've created a model portfolio that helps investors find high
quality dividend stocks: 10 Large / Mid
Cap & 10 Small
Cap stocks that earn our Attractive or Very Attractive rating and offer high
quality dividend yields.
10 Large / Mid
Cap & 10 Small
Cap stocks that earn our Attractive or Very Attractive rating and offer high
quality dividend yields.
With a plethora of choices, from
cap - weighted to smart beta, currency hedged to low volatility, to
quality and
dividend payers, the options can be pretty overwhelming.
The fund had major equivalent positions in the PowerShares BuyBack Achievers Portfolio (PKW; an index - based ETF), WisdomTree MidCap
Dividend Fund (DON), Guggenheim S&P 500 ® Equal Weight Technology ETF (RYT), FlexShares
Quality Dividend Index Fund (QDF), PowerShares Dynamic Market Portfolio (PWC), and First Trust Large
Cap Value AlphaDEX ® Fund (FTA).
While our emphasis on higher -
quality, large -
cap stocks with above - average
dividends was slightly out of step with a momentum - driven environment, we believe it is a prudent strategy from a longer - term standpoint.
We will invest in stocks (large
cap, domestic, and
dividend - paying), preferred stocks (super high -
quality, large
cap, domestic companies that may or may not pay a
dividend), and Exchange Traded Funds (or ETFs).
Our current allocation of 45 % -50 % stock — only large -
cap U.S. stock — is spread across ETFs holdings such as iShares MSCI USA Minimum Volatility ETF (NYSEARCA: USMV), iShares MSCI USA
Quality Factor ETF (NYSEARCA: QUAL) and Vanguard High
Dividend Yield (NYSEARCA: VYM).
It is a natural complement to our
Dividend strategy, which prioritizes high - quality, dividend - paying large cap domestic co
Dividend strategy, which prioritizes high -
quality,
dividend - paying large cap domestic co
dividend - paying large
cap domestic companies.
Much of the potential return advantage small -
cap dividend growers have over other small
caps can be attributed to
quality.
Lydon said the index SMDV tracks «includes
quality,
dividend - growing companies that have delivered higher return on equity compared to other small -
caps... without sacrificing earnings per share growth.»
Calling the situation for small
caps «a breather,» Kieran highlighted the
quality of small -
cap companies that have continually grown their
dividends over time, «making them a potentially compelling way to invest in this market.»
They were a select group of large -
cap stocks which offered what brokers & investors perceived to be an irresistible mix of
quality, growth &
dividends — that made them «one decision» stocks, which investors would «buy & never sell».
It will be hard to accept, if I directly conclude that
quality small
caps and mid
caps can offer more safety, better
dividend yield and obviously better return than large
cap stocks across any market cycle (bull and bear market).
From the above discussion, now it is clear that if you can select
quality stocks from mid
cap and small
cap space then it can easily outperform large
cap stocks on every front — be it capital appreciation or
dividend yield or steady cash flow.
The larger universe of stocks and lower requirements provides a wider choice of still high
quality dividend payers, particularly in the Mid-
Cap and Small
Cap areas.
While that's not a terrible expected return, it's also far lower than this high -
quality small
cap dividend growth stock can return and has in the past, when purchased at more attractive valuations.