Capital Group Dividend Value ETF offers a compelling blend of income and growth, outperforming peers and the S&P 500 since inception. CGDV's unique multi-manager approach, sector allocation, and concentrated portfolio drive its strong returns and defensive positioning. While CGDV's yield is lower than some dividend-focused ETFs, its dividend and NAV growth, plus qualified distributions, enhance its appeal.
Market volatility sparks income hunt -- dividend ETFs like SCHD, CGDV, SPYD, IDV, FDL & DIVO under $50 offer steady yields and value.
Capital Group Dividend Value ETF stands out among dividend and value ETFs, outperforming the S&P 500, dividend funds, and the value index. The value category has lagged growth for years, yet CGDV bucks this trend with attractive returns. This is in part because CGDV is not a traditional value fund, and its blend of growth into its value strategy has led it to significant outperformance.
Fiscal 2025 has been exceptional for CGDV, with total returns outpacing the S&P 500 by 70%. I reiterate my buy rating, expecting the fund's strong uptrend to continue through 2025 and beyond. Since its 2022 launch, CGDV has quickly become a top dividend-focused ETF.
CGDV offers exposure to top AI and tech leaders like MSFT, AVGO, and NVDA, supporting both growth and innovation potential. The fund aims to exceed the S&P 500 yield, invest in dividend payers, and deliver capital appreciation, achieving these goals modestly. While the dividend yield premium over the S&P 500 is minimal, CGDV's price appreciation has notably outperformed over the past three years.
The Capital Group Dividend Value ETF offers a compelling combination of value and dividend growth. The fund's current dividend yield is modest, but it has potential for considerable growth. The fund's portfolio trades at a 19.2 P/E ratio and a 3.5 price to book ratio--both of which are slight discounts to the S&P 500's multiples.
CGDV offers a unique blend of growth and value, focusing on dividend-paying, wide-moat stocks for balanced yield and capital appreciation. The fund benefits from Capital Group's multi-manager approach and deep analyst pool, ensuring strong stock selection and management continuity. CGDV's yield is about 30% higher than the S&P 500, with a focus on sustainable dividend growth rather than chasing the highest yields.
CGDV is an actively managed U.S. large-cap equity fund with a slight dividend and value tilt. The fund has outperformed the S&P 500 since inception, and reasonably consistently so. Overall, CGDV is a buy due to its cost-effectiveness, marginally higher yield, and consistent outperformance.
CGDV is a top-performing actively managed fund run by a team of five managers with extensive industry experience. Its expense ratio is 0.33% and CGDV has $16.68 billion in assets. Income is not the focus, despite a name that suggests otherwise. However, if readers can focus instead on total returns, they'll see that CGDV offers excellent and diversified factor mix. For example, CGDV's 52-stock portfolio has a 13.44% one-year estimated EPS growth rate on average, and net and free cash flow margins of 19.95% and 17.48%, respectively.
Initiating coverage of the Capital Group Dividend Value ETF with a buy rating due to its solid growth and outperformance over benchmarks. CGDV has returned 40.53% over the last 3 years, outperforming the S&P 500's 28.32%, thanks to its focus on cyclical sectors and high-quality companies. The ETF's significant exposure to big-cap tech and financials, along with its focus on companies with strong cash flow, drives its consistent outperformance.
Just about three years have passed since Capital Group entered the ETF ecosystem. Responding to advisor demand, per head of ETFs Scott Davis, the firm added six core strategies in the ETF wrapper.
I recommend the Capital Group Dividend Value ETF for its resilience during market volatility and potential for long-term outperformance through high-quality dividend stocks. CGDV's strategy includes a focused portfolio of 52 holdings, with significant exposure to industrial, healthcare, and technology sectors, enhancing its total return potential. Despite a low starting dividend yield of 1.5%, the Fund's holdings have strong free cash flows, indicating substantial future dividend growth.