Sound Equity Dividend Income Fund (DIVY)

DIVY: High Dividends Don't Overcome Quality And Growth Deficiencies

DIVY is an actively managed fund with a 4.67% 30-day SEC yield and a 10.68x forward P/E. It's currently comprised of 36 stocks and the ETF has a 0.45% ER. In my peer group comparison with FDVV, SCHD, HDV, and FDL, DIVY's yield and valuation metrics were the strongest. However, DIVY has delivered below-average results since its launch. My fundamental analysis reveals poor quality and growth as the likely reasons. Low earnings growth and profit margins will limit dividend growth and protection in market downturns.