Capital Group Dividend Value ETF Outperforms Peers
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 hours ago
0mins
Should l Buy NEE?
Source: Fool
- Leading Risk-Adjusted Returns: The Capital Group Dividend Value ETF (CGDV) achieved a 24.4% annualized return over the past three years, significantly outperforming the Schwab U.S. Dividend Equity ETF (SCHD) at 14.4% and the Vanguard S&P 500 ETF (VOO) at 22.2%, showcasing its exceptional performance on a risk-adjusted basis.
- Unique Portfolio Structure: With 30% of its portfolio in tech stocks, CGDV's top holdings include Microsoft, Nvidia, and Broadcom, and despite a modest dividend yield of 1.5%, its strategy resembles a growth-oriented market portfolio rather than a traditional dividend ETF.
- Active Management Advantage: The ETF's active management strategy allows fund managers to overweight high-conviction stocks, investing in companies with the potential to pay dividends, including non-dividend payers like Amazon and Uber, which enhances its competitiveness amid market fluctuations.
- Reasonable Expense Ratio: CGDV's expense ratio stands at 0.33%, considered reasonable for an actively managed strategy, and while it has outperformed other U.S. dividend ETFs, investors should carefully examine its investment strategy to ensure alignment with their investment expectations.
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Analyst Views on NEE
Wall Street analysts forecast NEE stock price to fall
16 Analyst Rating
12 Buy
4 Hold
0 Sell
Strong Buy
Current: 94.840
Low
84.00
Averages
92.50
High
100.00
Current: 94.840
Low
84.00
Averages
92.50
High
100.00
About NEE
NextEra Energy, Inc. is an electric power and energy infrastructure company. It operates through its wholly owned subsidiaries, NextEra Energy Resources, LLC and NextEra Energy Transmission, LLC (collectively, NEER) and Florida Power & Light Company (FPL). Its segments include NEER and FPL. FPL segment is a rate-regulated electric utility engaged in the generation, transmission, distribution and sale of electric energy in Florida. FPL has approximately 35,052 megawatts of net generating capacity, over 91,000 circuit miles of transmission and distribution lines and 921 substations. The NEER segment owns, develops, constructs, manages and operates electric generation facilities in wholesale energy markets in the United States and Canada and includes assets and investments in other businesses with a clean energy focus, such as battery storage, natural gas pipelines, and renewable fuels. It owns, develops, constructs and operates rate-regulated transmission facilities in North America.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Capital Group Dividend Value ETF Outperforms Peers
- Leading Risk-Adjusted Returns: The Capital Group Dividend Value ETF (CGDV) achieved a 24.4% annualized return over the past three years, significantly outperforming the Schwab U.S. Dividend Equity ETF (SCHD) at 14.4% and the Vanguard S&P 500 ETF (VOO) at 22.2%, showcasing its exceptional performance on a risk-adjusted basis.
- Unique Portfolio Structure: With 30% of its portfolio in tech stocks, CGDV's top holdings include Microsoft, Nvidia, and Broadcom, and despite a modest dividend yield of 1.5%, its strategy resembles a growth-oriented market portfolio rather than a traditional dividend ETF.
- Active Management Advantage: The ETF's active management strategy allows fund managers to overweight high-conviction stocks, investing in companies with the potential to pay dividends, including non-dividend payers like Amazon and Uber, which enhances its competitiveness amid market fluctuations.
- Reasonable Expense Ratio: CGDV's expense ratio stands at 0.33%, considered reasonable for an actively managed strategy, and while it has outperformed other U.S. dividend ETFs, investors should carefully examine its investment strategy to ensure alignment with their investment expectations.
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- Technical Analysis Tool: Comparing the latest share price to the 200-day moving average provides valuable insights for investors, aiding in market trend assessment and potential buying opportunities.
- ETF Trading Mechanism: ETFs trade similarly to stocks, where investors buy and sell 'units' that can be created or destroyed based on investor demand, impacting the fund's liquidity and market performance.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding helps identify ETFs experiencing significant inflows or outflows, allowing investors to capture market dynamics and investment opportunities.
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- Brookfield Renewable Overview: Brookfield Renewable's portfolio spans North America, South America, Europe, and Asia, generating power through hydroelectric, solar, and wind systems, with a projected 10% growth in funds from operations by 2031 and a $10 billion investment plan, providing a stable high-yield income for investors.
- Dividend Growth Potential: Brookfield has increased its distribution at an annualized rate of 5% for a decade, with current yields of 4.7% for partnership units and 4.4% for corporate shares, indicating strong appeal for smaller investors, especially as institutional buyers are restricted from partnerships.
- NextEra Energy's Position: NextEra Energy, one of the largest utilities globally, has a backlog of 20 gigawatts of clean energy projects, aiming to expand this to 100 gigawatts by 2032, with projected earnings growth of 8% annually, supporting a 6% dividend growth target through 2028, ensuring long-term dividend reliability.
- Advantages of Industry Leaders: As leaders in the clean energy sector, Brookfield and NextEra Energy offer attractive dividends while allowing investors to participate in the global transition to green energy, showcasing significant market potential for long-term growth.
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Brookfield Renewable's Investment Outlook in Green Energy
- Renewable Energy Investment Opportunities: Brookfield Renewable's portfolio spans North America, South America, Europe, and Asia, generating electricity through hydro, solar, and wind systems, showcasing significant growth potential in the global clean energy transition that is likely to attract more investor interest.
- Stable Dividend Growth: Brookfield Renewable has increased its dividend at an annualized rate of 5% over the past decade, with management projecting continued increases of 5% to 9%, providing investors with a reliable income source while reflecting strong operational cash flow growth expectations.
- NextEra Energy's Growth Potential: As one of the world's largest utilities, NextEra operates a large regulated utility in Florida and is also a leading producer of solar and wind energy, with plans to expand its clean energy project backlog from 20 gigawatts to 100 gigawatts by 2032, indicating robust growth momentum in the renewable sector.
- Long-Term Earnings Outlook: NextEra anticipates an 8% annual earnings growth through 2035, supporting its goal of 6% dividend growth through 2028, suggesting that the company will maintain a stable dividend record for decades to come, appealing to long-term investors.
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- Brookfield Renewable Overview: Brookfield Renewable's portfolio spans North America, South America, Europe, and Asia, generating electricity through hydroelectric, solar, and wind systems while also providing energy storage and nuclear services, showcasing its comprehensive and reliable presence in green energy investments.
- Stable Income Growth: The company has increased its distribution at an annualized rate of 5% over the past decade and aims to continue this growth at a rate of 5% to 9%, with management projecting a 10% growth in funds from operations through 2031, offering investors a stable high-yield investment opportunity.
- NextEra Energy's Growth Potential: NextEra Energy is one of the world's largest utilities, operating a large regulated utility in Florida while also being a major producer of solar and wind power, working to expand its clean energy project backlog from 20 gigawatts to 100 gigawatts by 2032, indicating strong growth potential.
- Sustainable Dividend Returns: NextEra Energy projects an 8% annual earnings growth through 2035, supporting a near-term goal of 6% dividend growth through 2028, with a current dividend yield of 2.6%, providing investors with long-term income security.
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U.S. Economic Recession and Stock Market Outlook
- Recession Expectations: Analysts assert that the U.S. economy will face a recession, although the timing remains uncertain, and a bear market is also anticipated, posing potential risks for investors who must prepare for market volatility.
- Resilience of Consumer Staples and Utilities: During economic downturns, utility and consumer staples companies typically perform well as spending on essential goods remains stable, making these sectors attractive safe havens for investors, especially amid market turbulence.
- Growth Potential of NextEra Energy: As a utility giant, NextEra Energy projects an 8% earnings growth through 2030, driven by surging electricity demand and a rapidly growing clean energy sector, providing a solid foundation for future dividend increases.
- Coca-Cola's Brand Loyalty: Coca-Cola experienced a 3% increase in case volume in Q1 2026, contributing to a 10% organic growth, demonstrating consumer loyalty to its brands even during budget constraints, which bodes well for future dividend hikes.
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Capital Group Dividend Value ETF Outperforms Peers
- Leading Risk-Adjusted Returns: The Capital Group Dividend Value ETF (CGDV) achieved a 24.4% annualized return over the past three years, significantly outperforming the Schwab U.S. Dividend Equity ETF (SCHD) at 14.4% and the Vanguard S&P 500 ETF (VOO) at 22.2%, showcasing its exceptional performance on a risk-adjusted basis.
- Unique Portfolio Structure: With 30% of its portfolio in tech stocks, CGDV's top holdings include Microsoft, Nvidia, and Broadcom, and despite a modest dividend yield of 1.5%, its strategy resembles a growth-oriented market portfolio rather than a traditional dividend ETF.
- Active Management Advantage: The ETF's active management strategy allows fund managers to overweight high-conviction stocks, investing in companies with the potential to pay dividends, including non-dividend payers like Amazon and Uber, which enhances its competitiveness amid market fluctuations.
- Reasonable Expense Ratio: CGDV's expense ratio stands at 0.33%, considered reasonable for an actively managed strategy, and while it has outperformed other U.S. dividend ETFs, investors should carefully examine its investment strategy to ensure alignment with their investment expectations.
See More
Analysis of JEPI ETF's 52-Week Price Range
- Price Fluctuation Analysis: JEPI ETF's 52-week low is $55.15 and high is $59.90, with a recent trading price of $55.98, indicating the fund's stability and volatility in the current market environment.
- Technical Analysis Tool: Comparing the latest share price to the 200-day moving average provides valuable insights for investors, aiding in market trend assessment and potential buying opportunities.
- ETF Trading Mechanism: ETFs trade similarly to stocks, where investors buy and sell 'units' that can be created or destroyed based on investor demand, impacting the fund's liquidity and market performance.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding helps identify ETFs experiencing significant inflows or outflows, allowing investors to capture market dynamics and investment opportunities.
See More
Analysis of Clean Energy Investment Opportunities
- Brookfield Renewable Overview: Brookfield Renewable's portfolio spans North America, South America, Europe, and Asia, generating power through hydroelectric, solar, and wind systems, with a projected 10% growth in funds from operations by 2031 and a $10 billion investment plan, providing a stable high-yield income for investors.
- Dividend Growth Potential: Brookfield has increased its distribution at an annualized rate of 5% for a decade, with current yields of 4.7% for partnership units and 4.4% for corporate shares, indicating strong appeal for smaller investors, especially as institutional buyers are restricted from partnerships.
- NextEra Energy's Position: NextEra Energy, one of the largest utilities globally, has a backlog of 20 gigawatts of clean energy projects, aiming to expand this to 100 gigawatts by 2032, with projected earnings growth of 8% annually, supporting a 6% dividend growth target through 2028, ensuring long-term dividend reliability.
- Advantages of Industry Leaders: As leaders in the clean energy sector, Brookfield and NextEra Energy offer attractive dividends while allowing investors to participate in the global transition to green energy, showcasing significant market potential for long-term growth.
See More
Brookfield Renewable's Investment Outlook in Green Energy
- Renewable Energy Investment Opportunities: Brookfield Renewable's portfolio spans North America, South America, Europe, and Asia, generating electricity through hydro, solar, and wind systems, showcasing significant growth potential in the global clean energy transition that is likely to attract more investor interest.
- Stable Dividend Growth: Brookfield Renewable has increased its dividend at an annualized rate of 5% over the past decade, with management projecting continued increases of 5% to 9%, providing investors with a reliable income source while reflecting strong operational cash flow growth expectations.
- NextEra Energy's Growth Potential: As one of the world's largest utilities, NextEra operates a large regulated utility in Florida and is also a leading producer of solar and wind energy, with plans to expand its clean energy project backlog from 20 gigawatts to 100 gigawatts by 2032, indicating robust growth momentum in the renewable sector.
- Long-Term Earnings Outlook: NextEra anticipates an 8% annual earnings growth through 2035, supporting its goal of 6% dividend growth through 2028, suggesting that the company will maintain a stable dividend record for decades to come, appealing to long-term investors.
See More
Two Unstoppable Green Energy Stocks to Celebrate Earth
- Brookfield Renewable Overview: Brookfield Renewable's portfolio spans North America, South America, Europe, and Asia, generating electricity through hydroelectric, solar, and wind systems while also providing energy storage and nuclear services, showcasing its comprehensive and reliable presence in green energy investments.
- Stable Income Growth: The company has increased its distribution at an annualized rate of 5% over the past decade and aims to continue this growth at a rate of 5% to 9%, with management projecting a 10% growth in funds from operations through 2031, offering investors a stable high-yield investment opportunity.
- NextEra Energy's Growth Potential: NextEra Energy is one of the world's largest utilities, operating a large regulated utility in Florida while also being a major producer of solar and wind power, working to expand its clean energy project backlog from 20 gigawatts to 100 gigawatts by 2032, indicating strong growth potential.
- Sustainable Dividend Returns: NextEra Energy projects an 8% annual earnings growth through 2035, supporting a near-term goal of 6% dividend growth through 2028, with a current dividend yield of 2.6%, providing investors with long-term income security.
See More
U.S. Economic Recession and Stock Market Outlook
- Recession Expectations: Analysts assert that the U.S. economy will face a recession, although the timing remains uncertain, and a bear market is also anticipated, posing potential risks for investors who must prepare for market volatility.
- Resilience of Consumer Staples and Utilities: During economic downturns, utility and consumer staples companies typically perform well as spending on essential goods remains stable, making these sectors attractive safe havens for investors, especially amid market turbulence.
- Growth Potential of NextEra Energy: As a utility giant, NextEra Energy projects an 8% earnings growth through 2030, driven by surging electricity demand and a rapidly growing clean energy sector, providing a solid foundation for future dividend increases.
- Coca-Cola's Brand Loyalty: Coca-Cola experienced a 3% increase in case volume in Q1 2026, contributing to a 10% organic growth, demonstrating consumer loyalty to its brands even during budget constraints, which bodes well for future dividend hikes.
See More
