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How Has DVY’s Portfolio Performed?

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DVY is heavily dependent on its top stocks

The top five holdings of the iShares Select Dividend ETF (DVY) represent 13% of its total portfolio. Lockheed Martin (LMT), Philip Morris (PM), CME Group (CME), Kimberly Clark (KMB), and McDonald’s (MCD) are its top five stocks. All these top stocks have performed negatively in the market for the previous month. The average return of DVY’s top stocks for the month of August 2015 was -6.13%, which dragged down the performance of DVY.

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Worst performer

KMB has dropped by 9.42%, the worst drop of these top five stocks. 14 Wall Street analysts have given a hold rating for KMB, whereas five have given a buy rating. Analysts have given a price target of $117.90 for KMB. Similarly, the other major drop of 8.13% was by PM. Many analysts have also given a hold recommendation for PM.

Best performer

Though many stocks have performed negatively for DVY, AGL Resources (GAS) and Sysco (SYY) have been the best performers for DVY, giving a monthly return of 25.11% and 9.65%, respectively. GAS will be acquired by Southern Company (SO), which many believe will be beneficial for the shareholders of GAS. Trian, a hedge fund co-founded by activist investor Nelson Peltz, recently became the largest shareholder of SYY by obtaining a 7% stake in the company, which boosted the stock’s share price.

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