Khanchit Khirisutchalual/iStock via Getty Images Investment Thesis Fidelity MSCI Communications Services Index ETF (NYSEARCA: FCOM ) deserves a buy rating due to the fund’s hybrid growth and income opportunities that are not yet fully appreciated by the market. While many of FCOM’s top holdings are tech companies that have generated significant capital appreciation, another overlooked quality is i...
Khanchit Khirisutchalual/iStock via Getty Images Investment Thesis Fidelity MSCI Communications Services Index ETF (NYSEARCA: FCOM ) deserves a buy rating due to the fund’s hybrid growth and income opportunities that are not yet fully appreciated by the market. While many of FCOM’s top holdings are tech companies that have generated significant capital appreciation, another overlooked quality is its dividend growth potential. History has shown that top dividend growers have delivered strong risk-adjusted returns particularly compared to companies that offer no dividends, making FCOM relatively undervalued. Fidelity MSCI Communications Services Index ETF – Overview and Compared ETFs FCOM is a passive ETF that tracks an index consisting of U.S. communications companies including media, interactive gaming, and advertising. With its inception in 2013, the fund has 92 holdings and $1.69B in AUM. The fund is cap-weighted and uses a representative sampling strategy. I wrote previously on the fund last year and still rate the ETF a buy for the reasons discussed in this article. For comparison purposes, other funds examined are State Street Communication Services Select Sector SPDR ETF ( XLC ), Vanguard Communication Services ETF ( VOX ), and iShares Global Comm Services ETF ( IXP ). XLC aims to capture comm sector holdings within the S&P 500 Index. VOX is a passive fund that also captures the comm sector and is the heaviest on interactive media, entertainment, and integrated telecommunications. IXP is included for comparison because it captures a global view of communication services and captures large, mid, and small cap companies. FCOM: Performance, Expense Ratio, and Dividend Yield FCOM has seen a 10-year average annual return of 10.64%. The Fidelity fund has outperformed both VOX and IXP, which had 10-year average returns of 8.54% and 8.82%, respectively. XLC has seen an average annual return of 11.84% since its 2018 inception. All funds underperformed the S&P 500 Index...
Paris-Roubaix's remains elite's sport's most volatile journey of daring and dust. And the Hell of the North is the one race legend Tadej Pogacar still can't win.
Paris-Roubaix's remains elite's sport's most volatile journey of daring and dust. And the Hell of the North is the one race legend Tadej Pogacar still can't win.
Don't look now, but the S&P 500 index is becoming something of a desert for income investors. As reported recently by Yahoo! Finance, the average dividend yield of all 500 titles has shriveled to barely over 1.2%, one of its lowest levels in more than 50 years. Now that, of course, hardly means that all dividend-paying companies in that grouping dispense at discouragingly skinny rates. Here are th...
Don't look now, but the S&P 500 index is becoming something of a desert for income investors. As reported recently by Yahoo! Finance, the average dividend yield of all 500 titles has shriveled to barely over 1.2%, one of its lowest levels in more than 50 years. Now that, of course, hardly means that all dividend-paying companies in that grouping dispense at discouragingly skinny rates. Here are three S&P 500 index mainstays that boast yields well higher than the average: Take a bow, AbbVie (NYSE: ABBV) , Procter & Gamble (NYSE: PG) , and Coca-Cola (NYSE: KO) . I should also mention that all three are Dividend Kings , the name given to the very exclusive club of stocks that have enacted dividend raises once annually for a minimum of 50 years running. AbbVie qualifies by virtue of its 2013 spinoff from Abbott Laboratories ; together, their hikes stretch back 54 years. Continue reading