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Buyback & Dividend ETF (DIVB) Hits New 52-Week High
Investors seeking momentum may have US Dividend and Buyback iShares ETF (DIVB - Free Report) on radar now. The fund recently hit a new 52-week high. Shares of DIVB are up approximately 18.1% from their 52-week low of $35.29/share.
But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.
DIVB In Focus
The underlying Morningstar US Dividend and Buyback Index is composed of U.S. stocks with a history of dividend payments and/or share buybacks. The fund charges 5 bps in fees.
Why The Move?
S&P 500’s buybacks were $185.6 billion in Q3 of 2023, up 6.1% from $174.9 billion recorded in Q2 of 2023. Total shareholders return of buybacks and dividends increased to $329.8 billion in Q3 of 2023, up 3.7% from Q2 of 2023's $318.1 billion. Moreover, we can expect interest rates to fall in the coming days as price inflation is apparently under control. Dividend ETFs normally outperform in a low-rate environment.
More Gains Ahead?
The fund has a positive weighted alpha of 10.89. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade further.