Dividends have historically contributed a significant portion of total returns in equity markets and therefore offer a potential stream of reliable income to investors. ETF Central spoke with Opal Dividend Income ETF (DIVZ) portfolio manager, Austin Graff, to learn more about the power of dividends for an investment portfolio and what sets DIVZ apart.
DIVZ is driven by a belief that dividend-paying companies tend to be more established businesses with high cash flow, stable revenue streams, and more disciplined capital reinvestment which may, in turn, help them experience lower volatility relative to the overall equity market. DIVZ is concentrated in 25-35 well-managed companies across a range of sectors and seeks to offer above-average dividends and the ability to grow those dividends over time.
Fund Disclosures
Dividends are not guaranteed.
Some of the Fund’s key risks, include but are not limited to the following risks:
- Dividend Paying Security Risk. Securities that pay high dividends as a group can fall out of favor with the market, causing these companies to underperform companies that do not pay high dividends. Dividends may also be reduced or discontinued.
- Depositary Receipts (“ADRs”) have risks similar to those of foreign securities (political and economic conditions, changes in the exchange rates, etc.) and entitle the holder to all dividends and capital gains that are paid out on the underlying foreign shares.
