Microsoft

Apple

Broadcom

JPMorgan Chase & Co

Walmart

UnitedHealth Group

Exxon Mobil

Visa

Oracle

Mastercard

Invesco Dividend Achievers ETF

PFM tracks a market-cap-weighted index of dividend-paying US companies that have increased their annual dividends.

The Invesco Dividend Achievers ETF (PFM) was launched on 09/15/2005, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market.

Should Invesco Dividend Achievers ETF (PFM) Be on Your Investing Radar?

Imagine building a portfolio where your investments work for you to generate a steady stream of income without demanding constant attention. Passive income is a powerful financial tool that can help you achieve your financial goals and build long-term wealth.

Harness the Power of Dividend ETFs for Steady Income Growth

Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the Invesco Dividend Achievers ETF (PFM) is a passively managed exchange traded fund launched on 09/15/2005.

The Invesco Dividend Achievers ETF invests in companies with ten consecutive years of dividend increases, favoring stable businesses and offering above-average yield and dividend growth. PFM's portfolio is less volatile than the S&P 500, with significant holdings in consumer staples, financial services, and technology sectors. PFM's valuation is mixed, with a P/E ratio of 19.7x, lower than the Russell 1000 but higher than peer dividend ETFs.

PFM: A Low Volatility Dividend ETF

PFM holds over 400 U.S. Dividend Achievers, defined as those with at least ten consecutive years of increasing dividend payments. The ETF has $651 million in AUM. A major negative is PFM's 0.53% expense ratio, which negatively impacts its already low dividend yield. High fees don't always deter me, but in this case, better alternatives exist. In particular, VIG has a similar composition, a competitive combination of growth, value, and quality, and a more reasonable 0.06% expense ratio that should result in higher dividend payments.

PFM: Solid Base But High Expense Ratio

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Per the legendary investor John Hussman -- famous for predicting the 2000 and 2008 crashes, the latest stock rally is ingrained in the extreme fear of missing out. This FOMO rally may fizzle if the consensus view starts changing and valuation gets too ripe.

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PFM's portfolio has seen a few changes in the wake of the underlying index's reconstitution in March. With valuation being less of a concern assuming the new narrative dominates the markets, I am still mostly tepid on PFM, so the Hold rating is maintained. The factor story under the hood has not changed much, with the portfolio now being a bit more expensive while the weighted-average growth rates have weakened slightly.

PFM: Discussing The Impact Of Reconstitution

Invesco Dividend Achievers™ ETF offers exposure to dividend-paying companies with a history of increasing dividends. The PFM ETF's top holdings include Microsoft, Apple, UnitedHealth Group, Exxon Mobil, and JPMorgan Chase. PFM's sector composition is well-diversified, but it has a significant exposure to the Information Technology sector.

PFM: Good For Dividend Exposure Overall

PFM focuses on publicly traded companies that depict a dividend growth quality. Some drawbacks are that the ETF has a high exposure to the Information Technology/Financials sectors and its expense ratio is high. Regardless, its performance has been relatively attractive and it has a solid distribution record.

PFM: A Decent Addition To Income Portfolios

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Value stocks perform better in a higher rate environment. Any show of economic resilience is likely to bring share prices down as the Fed will turn hawkish.

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PFM is a nicely diversified dividend ETF, with a strategy based on an index requiring a 10-year dividend growth story as the bare minimum to qualify. Though not delivering much on the dividend yield front, the fund remains heavy in high-quality dividend stories. PFM has a portfolio with remarkable dividend consistency and safety credentials, but it notably lags on value.

PFM: Appreciate On Dividend Safety Front But Suboptimal Value Exposure, Worth Avoiding

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Invesco Dividend Achievers™ ETF holds over 400 U.S. dividend-growth stocks. It is well diversified across sectors and holdings. It looks better than the benchmark regarding both valuation and quality metrics.

PFM: There Are Better Dividend Growth ETFs

Invesco Dividend Achievers ETF owns stocks that increased their dividends annually for 10 or more years. A long history of increasing dividends is a very attractive attribute for a stock if you are a dividend investor.

This Dividend-Focused ETF Is Not a Good Dividend Investment

PFM has struggled to perform well in a challenging economic environment, registering negative returns in 2022. The ETF's selection criteria of only investing in companies with at least 10 years of dividend growth may have allowed lower-quality stocks to slip into the portfolio.

PFM: Setting The Bar Too Low

PFM is a large-cap dividend growth ETF. Valuation ratios are average, but portfolio quality is good.

PFM: ETF With 5% Annualized Dividend Growth, But Sub-Par Return

Invesco S&P 500 High Dividend Low Volatility ETF

Economic outlooks have continued to darken as the year unfolds, leaving investors unsure and uneasy about if and where to move their money.

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Not much is working in equity markets in 2022, but among the clear sources of “less bad” are dividend stocks and the related exchange traded funds. High dividend stocks and ETFs are beating the broader market, but so are dividend growth funds.

PFM Pertinent for Dependable Dividend Growth

PFM's current fundamentals look attractive. It trades at 18.25x forward earnings, is well-diversified at the industry level, and is outperforming the S&P 500 Index by 6% YTD. The problem is that dozens of other dividend-focused ETFs are outperforming, too. PFM's 0.52% expense ratio, the ninth highest out of 64 in the category, doesn't help.

PFM: Fundamentals Looking Strong

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While the markets have been weighed down by uncertainty, investors could find some stability in dividend-themed exchange traded funds. Dividend payments have set another record in the second quarter, with S&P 500 companies paying out a record $140.6 billion in dividends over the last three months, the Wall Street Journal reported.

In an Unreliable Market, Dividend ETFs Remain a Steady Ballast

PFM's investment mandate is to track the NASDAQ U.S. Broad Dividend Achievers Index. To qualify for the cohort, a company must have no less than a 10-year regular dividend growth history. The article provides a detailed look at the valuation, quality, and dividend characteristics of the current version of the PFM portfolio.

PFM: Reassessing Valuation, Quality, And Dividend Credentials

Broader equity benchmarks are sliding through the first four months of 2022, and that could be a sign that investors may want to brace for more subdued returns going forward. In environments like that, investors can survive and thrive with dividend growth stocks.

Dividend Growth ETFs Are Ideal for This Environment

PFM tracks the U.S. Broad Dividend Achievers Index, selecting constituents that have increased dividend payments for at least ten years. Fees are high at 0.53%, and PFM yield's 1.87%. Historically, PFM has performed about the same as an S&P 500 Value Index ETF. However, quality is inferior, as I'll demonstrate by highlighting each fund's current growth rates and valuation.

News for Invesco Dividend Achievers ETF ETF (PFM)