iShares Core Dividend ETF

DIVB

Market cap $1B

These dividend exchange-traded funds have all you can ask for. You can use the first one as a core holding and selectively pick out the satellites.

iShares Core High Dividend ETF (HDV) is downgraded to Hold due to underperformance driven by heavy energy and healthcare sector exposure. HDV's high dividend yield is offset by sluggish price momentum and weak earnings growth in key sectors, limiting its upside in tech-driven markets. iShares Core Dividend ETF (DIVB) is maintained as a Buy, offering strong capital appreciation, higher dividend growth, and better sector diversification.

DIVB offers broad exposure to high-quality, dividend-paying U.S. stocks, making it a solid core holding for income-focused investors. The ETF's low expense ratio and diversified portfolio provide cost-effective access to reliable dividend growers across sectors. Strong historical performance and a disciplined index methodology support DIVB's appeal for long-term, risk-averse investors seeking steady income.

I maintain a buy rating on iShares Core Dividend ETF due to its attractive valuation, strong dividend growth, and substantial increase in assets under management. DIVB's portfolio is heavily weighted towards large-cap value stocks, with significant exposure to Information Technology and Financials, offering a lower-beta, income-focused investment. The ETF's PEG ratio has improved, with a P/E of 14.8x and long-term EPS growth rate of 8.7%, making it reasonably valued.

DIVB: Dividend Increase Expected For This Well-Diversified Shareholder Yield ETF

iShares Core Dividend ETF offers a low expense ratio of 0.05% and a 12-month trailing yield of 2.7%, higher than the S&P 500's 1.2%. DIVB focuses on U.S. stocks with strong dividend and buyback programs, emphasizing large-cap value stocks, which provide stability and downside protection. The fund's significant exposure to the technology sector enhances long-term growth potential, with tech stocks expected to lead in EPS growth.

Index fund investors face lower yields in the S&P 500, with the 2025 implied dividend yield at 1.3%, down from over 1.5% last year. The iShares Core Dividend ETF offers a compelling alternative with a 2.56% yield, low fees, and a bullish technical trend. DIVB's portfolio focuses on large-cap value stocks, excluding growth stocks, and has a low 14.6x price-to-earnings ratio, enhancing its attractiveness.

Focus on dividend-paying stocks in a volatile market. iShares Core Dividend ETF focuses on U.S. companies with steady income stream and stock buybacks. The DIVB ETF's top holdings in the Tech sector, diversified across sectors, outperform peers like Vanguard Dividend Appreciation ETF.

iShares Core Dividend ETF provides majority tech exposure while maintaining a high dividend growth and consistent returns. DIVB's strategy focuses on holding mostly US-based companies that return capital to shareholders through dividends and buybacks. DIVB's low starting yield of 2.8% is offset by high dividend growth, making it ideal for long-term investors looking to compound income.

80% of S&P 500 companies are entering pre-earnings buyback blackouts, according to Bloomberg. Analysts anticipate a potential rebound post-blackout.