We provide a platform for our authors to report on investments fairly, accurately, and from the investors point of view. The remaining earnings primarily come from narrow-moat regulated gas and electric utilities in states with long histories of constructive regulatory frameworks, solid sales growth, and high-return investment opportunities. For instance, Vanguard Dividend Appreciation ETFs top three holdings (UnitedHealth Group UNH, Johnson & Johnson JNJ, and Microsoft MSFT) are also among the top 10 holdings of the broad-based large-cap Vanguard Total Stock Market ETF VTI. As such, dividend-growth stocks generally exhibit some resilience during market downturns and economic slowdowns. New Dividend-Payers in the Index In the table below, we show the newest entrants to the Dividend Yield Focus Index, which pass our strict requirements for high yields, sustainable competitive advantages, and financial health. Morningstar has not given its consent to be deemed an expert under the federal Securities Act of 1933. The table below includes fund flow data for all U.S. listed Highland Capital Management ETFs. Analyst ratings are based on Morningstars analysts current expectations about future events and therefore involve unknown risks and uncertainties that may cause such expectations not to occur or to differ significantly from what was expected. manager with Windgate Wealth Management. This is compared to the Banks - Southwest industry's yield of 1% and the S&P 500's current yield. Historical return data for other ETFs in the Large Cap Value Equities ETF Database Category is presented in the following table. Close 138.58 High 138.61 Low 138.61. We selected the following dividend ETFs based on positive share price gains year-to-date as of December 9. Fundamental company data provided by Morningstar, updated daily. Currently paying a dividend of $0.55 per share, Prosperity Bancshares (PB) has a dividend yield of 3%. Dividend-Stock Deep Dive: Banks and Capital Allocation, Dividend Stock Deep Dive: Midyear 2022 Picks, Dividend-Stock Deep Dive: Dividend-Growth Stocks. How we use your information depends on the product and service that you use and your relationship with us. This implies 8% annual rate base growth, one of the highest growth rates in the sector. How we use your information depends on the product and service that you use and your relationship with us. This Morningstar 5-star rated fund has managed to outperform its category peers and benchmark index across time frames and also restrict losses during market downturn. We then apply the quality screens: We search the high-yielders for companies that have Morningstar Economic Moat Ratings of wide or narrow, meaning that we think they have competitive advantages that will allow them to continue to earn above-average profits and sustain their dividends for 20 or 10 years, respectively. He holds a Bachelor's degree in finance form DePaul University, and he We first screen the Morningstar US Market Index for dividend-payers. High-quality tech stocks, including Microsoft, Salesforce, and Workday, are trading below their fair value estimates. Enjoy a 7-Day Free Trial Thru Mar 05, 2023! We provide a platform for our authors to report on investments fairly, accurately, and from the investors point of view. We also respect individual opinionsthey represent the unvarnished thinking of our people and exacting analysis of our research processes. In 2010, Morningstar designed a forward-looking approach to rules-based passive equity income investing: the Morningstar Dividend Yield Focus Index. This publication is intended to provide information to assist investors in making their own investment decisions, not to provide investment advice to any specific investor. Trailing Returns Day End There is no data available. The information, data, analyses and opinions contained herein (1) include the proprietary information of Morningstar, (2) may not be copied or redistributed, (3) do not constitute investment advice offered by Morningstar, (4) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (5) are not warranted to be correct, complete or accurate. Results generally were higher than our forecasts. We first screen the Morningstar US Market Index for dividend-payers. Largest in Assets Management reaffirmed its 5%-7% annual earnings growth outlook through 2025, but we think Edison will hit the high end of that as it resolves several key regulatory uncertainties. The index is dividend dollar-weighted (constituents are weighted according to the total dividends paid by the company to investors). Avoiding ESG risk is becoming ever more critical, as companies face pressure to deliver for all stakeholders. Analyst Bridget Weishaar is optimistic about VF Corp's prospects because she thinks the company is poised to take advantage of three market trends. The turnover rate is 0%. We sell different types of products and services to both investment professionals and individual investors. Privacy Policy and In challenging conditions, The Law Debenture Corporation (LWDB) has reported robust 2022 results. Click here to see the current holdings. The Data is provided for information, non-commercial purposes only, and may not be used as a basis, or benchmark, for any financial instruments or products (including, without limitation, passively managed funds and index-linked derivative securities), or used to verify or correct data in any other compilation of data or index, or used to create any other data or index, without the prior written consent of Morningstar. For sustainable investors with equity income objectives, the Morningstar Sustainability Dividend Yield Focus Indexes highlight attractive dividend yields while mitigating ESG risk. This site is protected by reCAPTCHA and the Google Includes the top 75 stocks by dividend yield in the Morningstar US Market Index SM, which represents 97% of U.S. equity market capitalization. But with the stock trading at an 18% premium to our $88 fair value estimate, we think prospective investors should wait for a wider margin of safety. Earnings growth will be slower than rate base growth primarily due to financing costs while Edison works through several regulatory proceedings and finances its growth investments. Semiconductor stocks took a beating in 2022, leaving many names trading at a discount. Copyright 2023 Morningstar, Inc. All rights reserved. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive. We also respect individual opinionsthey represent the unvarnished thinking of our people and exacting analysis of our research processes. The Morningstar Global Dividend Yield Focus Index lands in the large-value segment of the Morningstar Style Box, where most equity income strategies sit. And Edison International EIX and Spirit Realty Capital SRC both declared dividends this week that were unchanged from their previous payouts.Please see new analyst notes and updates below from Morningstar Research Services for Edison International, Genuine Parts, Lloyds Banking Group LYG, Medtronic MDT, and Williams Companies WMB. In December, we made some changes to the Morningstar Dividend Yield Focus Index. Our Dividend Yield Focus strategy looks at both backward-looking and qualitative forward-looking measures to find high-yielding stocks that are financially healthy enough to sustain their dividend. Please click here for a list of investable products that track or have tracked a Morningstar index. investment trusts. Wide-moat Medtronic's fiscal third-quarter results offered marked sequential improvement over anemic second-quarter performance. We may use it to: To learn more about how we handle and protect your data, visit our privacy center. Morningstar indexes are created and maintained by Morningstar, Inc. Morningstar is a registered trademark of Morningstar, Inc. Five Public Companies for the Impact-Minded Investor. Ellis explains, however, that if NYCB cannot find a bank to acquire in 2017, it may cross over the $50 billion mark organically in 2018, likely becoming a systemically important financial institution, or SIFI, in 2019. Links to a proprietary ETF Database rating for other ETFs in the Large Cap Value Equities ETF Database Category is presented in the following table. Gear advertisements and other marketing efforts towards your interests. The first group invests in high-dividend stocks. We also respect individual opinionsthey represent the unvarnished thinking of our people and exacting analysis of our research processes. Benchmarks representing 98% of the investable market cap of developed and emerging markets globally. Management said they expect to request $2 billion later this year and likely more in 2024. are in a stronger competitive position than their peers and that are trading at a reasonable price. Be among the first to receive the latest Morningstar Indexes analysis and perspectives. Following this raise, the company's 67th consecutive annual increase, the annual dividend rate is $3.80 per share, a 6.1% increase from 2022. document.write(day.getFullYear()); Disclosure: Morningstar, Inc. licenses indexes to financial institutions as the tracking indexes for investable products, such as exchange-traded funds, sponsored by the financial institution. Develop and improve features of our offerings. Edison now trades at just a 9% discount to our fair value estimate after its 20% rally since October, double the return of the Morningstar U.S. Utilities index. Most dividend mutual funds and ETFs take one of two approaches to investing. We are reaffirming our $73 fair value estimate for Edison International after management reported $4.63 per share of core earnings in 2022, in line with our estimate and management's guidance range. The outcome of owning dividend-yielding Before making any investment decision, consider if the investment is suitable for you by referencing your own financial position, investment objectives, and risk profile. Dividend-growth stocks dont usually boast burly yields like high-dividend stocks do, but they come from companies that are usually financially healthy and that have raised their dividends over time. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. There is no assurance that the data will remain the same.Disclosure: The commentary, analysis, references to, and performance information contained within Morningstar DividendInvestor, except where explicitly noted, reflects that of portfolios owned by Morningstar, Inc. that are invested in accordance with the Dividend Select strategy managed by Morningstar Investment Management LLC, a registered investment adviser and subsidiary of Morningstar, Inc. References to "Morningstar" refer to Morningstar, Inc. and/or, where applicable, its affiliates.Opinions expressed are as of the current date and are subject to change without notice. What is the Morningstar Economic Moat Rating? The information contained in this document is the proprietary material of Morningstar, Inc. Reproduction, transcription, or other use, by any means, in whole or in part, without the prior written consent of Morningstar, Inc., is prohibited. Before making any investment decision, investors should read and consider all the relevant investment product information. Learn about stock investing and get our take on timely company news and the stock market. Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investors point of view. Inquiries regarding your subscription such as address changes, missing/damaged issues, etc. Find out about Morningstars Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. Significant dispersion exists between companies carrying significant environmental, social, and governance-related risk, and those for whom ESG issues will likely have little financial impact. Index solutions for incorporating ESG Risk, Climate, and Impact into the investment process. Edison's underlying growth driver is its $6 billion annual capital investment plan, in line with our forecast. Fund Ticker MOTE Exchange Cboe Inception Date 10/05/2021 ETF Structure Physical Administrator Van Eck Associates Index Ticker MSUSSMGU Develop and improve features of our offerings. Investors should note that this may result in a dividend cut in line with the SIFI transition to around a 30% payout ratio. endobj This extends its positive daily streak to 56 days, the longest stretch since January 2020, and follows a challenging 2022 in which the index lost 0.6%. Past performance is no guarantee of future results. Operationally, Lloyds had a good fourth quarter. Fund flow information for other ETFs in the Large Cap Value Equities ETF Database Category is presented in the following table. Edison trades at a P/E of 14 compared with a P/E of 19 for the utilities sector. Here's the recipe that one of the greatest investors uses to pick stocks. 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