Capital Group Dividend Growers ETF $CGDG is Confluence Wealth Services Inc.’s 9th Largest Position
Confluence Wealth Services Inc. boosted its stake in Capital Group Dividend Growers ETF (NYSEARCA:CGDG) by 13.5% in the undefined quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 1,964,081 shares of the company's stock after buying an additional 233,741 shares during the period. Capital
CGDG: Dividend Growth ETF That Offers Global Protection
Capital Group Dividend Growers ETF offers global, high-quality dividend exposure with a defensive tilt, outperforming the S&P 500 during recent market pullbacks. CGDG's multi-manager, actively managed strategy avoids yield traps, rotates out of underperformers, and balances U.S. (50.8%) and non-U.S. (46.6%) equities. With a 2% starting yield and 9.39% trailing twelve-month dividend growth, CGDG targets long-term income growth and capital preservation for lower-risk investors.
Why CGDG May Be The New King Of Dividend Growth ETFs
The Capital Group Dividend Growers ETF offers a unique, actively managed global dividend growth strategy with a reasonable 0.47% expense ratio. CGDG's portfolio blends U.S. and international equities, including REITs, providing diversification and exposure to both income and growth. The ETF outperformed major peers over the past year, benefiting from international equity strength and attractive sub-17x P/E valuation.
CGDG: Not My Preferred Dividend Growth ETF
The Capital Group Dividend Growers ETF offers global dividend growth exposure but carries a relatively high expense ratio of 0.47%. CGDG is well-diversified with significant international holdings, including 30% in Europe and 16% in Asia, differentiating it from U.S.-focused peers. Despite solid short-term performance, CGDG's limited track record and heavy European exposure are key concerns given Europe's structural challenges and lower growth prospects.
CGDG: The Less Risky Dividend Grower Is Beating The Market
CGDG has rapidly gained traction since its 2023 launch, outperforming the S&P 500 and dividend indices with strong total returns and robust price appreciation. The ETF's active, fundamentals-driven approach and global diversification across sectors support both dividend growth and risk mitigation. Top holdings like Broadcom, RTX Corp and Philip Morris combine value and growth, fuelling earnings and dividend growth, while the fund maintains attractive valuations.
CGDG: Global Dividend ETF With Income Growth Potential
CGDG offers strong total returns and dividend growth potential, outperforming peer dividend ETFs since inception, though its history is short. The fund provides global diversification and unique technology sector exposure, setting it apart from more US-centric, or traditional dividend ETFs. CGDG may underperform index-tracking ETFs like SPY and QQQ over the long term, due to limited exposure to high-growth, non-dividend stocks.
CGDG: A Global Dividend Grower With Active Edge And Smart Diversification
Capital Group Dividend Growers ETF offers a rare, actively managed international dividend growth strategy with strong manager diversification, mitigating groupthink and concentration risks. The ETF balances US and developed markets exposure, with reasonable sector diversification and a focus on quality, low-risk, slow compounding stocks. The yield is modest at ~2%, but the fund prioritizes long-term compounding over high payouts, supporting inflation-adjusted income growth for investors.
CGDG: The Less-Known Dividend Grower Can Beat The Market In Long Term
Capital Group Dividend Growers ETF has outperformed the S&P 500 and many dividend ETFs since its launch in late 2023, making it a buy. CGDG's success is attributed to its diversified portfolio of growth and value stocks, with significant global exposure and strategic stock selection. The fund offers a higher dividend yield than the S&P 500, with attractive valuations, trading at 16x earnings and 2.5x book value.
Turning to Dividend ETFs for Stability
The stock market has been anything but stable in April. A sharp sell-off occurred due the imposition of high tariffs.
Advisors Favor Dividends at Start of '25
With the 10-year bond yield climbing higher at the start of the year, many advisors are looking to equities for income. In the initial days of 2025, bonds fell in value amid expectations that the Fed's rate cutting efforts could be on hold for longer than expected.
CGDG: Underperformance Is Continuing Into 2025, FX Headwinds Partly To Blame
Actively managed CGDG searches for promising dividend growth stocks with appealing yields in the global equity universe, with special attention paid to the U.S. and developed markets. Although since the October note, CGDG has made a few adjustments to its portfolio, it is still heavy in U.S. stocks and cyclical sectors like industrials. CGDG has been unable to beat ACWI since inception. Performance since October has been overwhelmingly disappointing, with one of the detractors being the decline of the EUR and the GBP.
ETF Prime: Murphy Predicts 5 ETF Trends for 2025
On this week's episode of “ETF Prime,” Cinthia Murphy, investment strategist at VettaFi, joined host Nate Geraci. The two discussed five ETF predictions for the year, including cautious investing, actively managed small-cap strategies, and other trends.
