CGDV: A Value-Focused Dividend Growth Fund for Investors Seeking Reliable Income

The article discusses CGDV, a dividend fund that offers value and dividend growth. The author highlights the importance of looking beyond US tech stocks and exploring cheaper sectors, such as dividend stocks, during periods of market volatility. The fund's focus on dividend growth and value makes it an attractive option for investors seeking stable returns.

Investors have been increasingly focusing on dividend funds as a means to generate stable returns, especially during periods of market volatility. With U.S. tech stocks reaching unprecedented highs, it has become prudent to explore cheaper sectors, such as dividend stocks, for investment opportunities. One such fund that has caught the attention of investors is the Capital Group Dividend Value ETF (NYSEARCA: CGDV).

CGDV is an actively managed ETF that offers a blend of value and dividend growth. Unlike many dividend funds that track a specific index, CGDV is based on the Capital Group Dividend Value Composite and includes a wide variety of stocks from the S&P 500, excluding non-dividend payers [1].

The fund's portfolio composition is notable for its slight value tilt and high dividend growth potential. As of recent data, CGDV's top holdings include Microsoft (MSFT), Broadcom (AVGO), and NVIDIA (NVDA), among others. These holdings reflect a focus on dividend growth, with many of the stocks boasting high five-year CAGR dividend growth rates [1].

One of the key advantages of CGDV is its lower price-to-earnings multiple compared to the S&P 500. While the S&P 500 trades at approximately 20.6 times earnings, CGDV has a multiple of 19.2 times earnings. This makes CGDV an attractive option for investors seeking exposure to high-quality companies at a more affordable price [1].

Moreover, CGDV's 0.87 beta coefficient indicates that it is less volatile than the underlying index. This is particularly relevant in an era marked by tariff-driven uncertainty, as investors can expect less price volatility from CGDV compared to the broader market [1].

In conclusion, the Capital Group Dividend Value ETF offers investors a diversified portfolio with a focus on dividend growth and a slight value tilt. Its lower price-to-earnings multiple and lower volatility make it an attractive option for investors seeking stable returns during periods of market uncertainty. However, as with any investment, it is essential to conduct thorough research and consider individual financial goals before making a decision.

References:
[1] Richard Drury, "CGDV: Buy for Value, Stay for Dividend Growth," Seeking Alpha, [URL](https://seekingalpha.com/article/4800699-cgdv-buy-for-value-stay-for-dividend-growth).