TBG Dividend Focus ETF

TBG

Market cap $175M

Dividend growth investing offers attractive opportunities amid speculative market fervor, with a focus on steady income over chasing AI-driven gains. US macroeconomic headwinds—demographics, tariffs, and low housing affordability—are likely to constrain GDP and earnings growth outside of AI-related sectors. My current buy list features five dividend compounders, each offering solid yields and projected dividend growth.

Given heightened economic uncertainty, I am leaning more defensive and sticking with my dividend growth investing strategy, emphasizing diversification and income stability. The frozen housing market, soft labor conditions, and stagnating consumer spending signal potential economic weakness, despite optimism in select sectors like tech. My ETF portfolio review shows shifting leadership, with midstream energy outperforming previously, but preferreds and tech-focused ETFs now leading as trends evolve.

In an uncertain market, I stick to five core investing principles: stay the course, specialize, diversify, trust proven experts, and keep some cash. Dividend growth investing (DGI) remains my strategy, with a focus on reliable cash flow compounding and growing dividends to eventually replace labor income. I diversify beyond my real estate core by blending passive DGI ETFs and selecting active ETFs with proven outperformance.

TBG is an actively managed ETF comprised of 30-40 U.S. companies selected for their dividend sustainability and ability to grow distributions over a 5-7 year market cycle. The fund's 0.59% expense ratio negatively impacts distributions, but its 2.40% trailing dividend yield is likely understated. This article explains why I expect it to gradually increase to the 3.50-3.60% range. TBG has solid quality and dividend growth features, though negative historical earnings growth rates have led to a high 66% payout ratio, 8% more than the four-year average.

NEW YORK--(BUSINESS WIRE)--The TBG Dividend Focus ETF (NYSE: TBG), an exchange-traded fund managed by The Bahnsen Group, a wealth management firm with over $7 billion in assets, today announced the hiring of Bowyer Research to advise the ETF on proxy voting. The ETF will rely on Bowyer Research's Bowyer Research Proxy Voting Guidelines, a framework that focuses on shareholder capitalism and aims to depoliticize corporate governance. Bowyer's guidelines exist to support value creation, free ente.

TBG is a 2.87% yielding actively managed dividend ETF with a concentrated portfolio of just 34 companies. TBG Dividend Focus ETF has a potent strategy, as it has beaten a few peers since its inception, though it has lagged the market. The Fund has a value tilt and excellent quality, but low-fee passively managed SCHD looks stronger, with higher weighted average ROA and dividend growth rates.

TBG has an active strategy with a focus on dividend growth stocks with resilient balance sheets and robust FCF. The results it has delivered since inception in 2023 are impressive beyond doubt, as it has beaten a few heavyweight dividend growth ETFs easily. Its financials-heavy portfolio of 35 companies has impressive quality and value exposures. However, its growth characteristics, namely the 3-year FCF CAGR, look too weak to me.

NEW YORK--(BUSINESS WIRE)--The Bahnsen Group, a wealth management firm with $6.5 billion in assets under management, today announced that its TBG Dividend Focus ETF (NYSE: TBG), a diversified actively managed exchange-traded fund that invests in publicly traded companies that have a long history of growing their dividend, has surpassed $100 million in assets. TBG invests in 25 to 35 small-, mid- and large-cap companies that are primarily U.S.-based. The companies will generally maintain a divid.

TBG Dividend Focus ETF is an actively managed dividend growth ETF with a concentrated portfolio of 34 stocks. TBG has value characteristics and is well-diversified across sectors, with a focus on financials. TBG track record is short, but promising: it has outperformed most dividend-growth ETFs since its inception.

Dividend investing remains a popular strategy for investors amid volatility and uncertainty.