4Wk·

Dividend announcement Fidelity Global Quality Income

Just curiously checked the dividend announcement from $FGEQ (+1.49%) and saw that the main dividend from May has been reduced to the 2021 level. This is questionable for me as I have no explanation for this. Does anyone have any ideas?

23 Comments

Sina@lawinvest

4Wk

Yes, the ETF is a lot of things, but it is not originally a dividend growth-oriented thing as many think (i.e. that it regularly increases dividends itself)
The allocation has shifted towards stocks that pay less dividends. Suddenly you also get less... e.g. largest position NVIDIA... pays almost nothing

Addendum: the weakness of the USD exchange rate is probably also playing a role here. It has easily lost 10% in the last few months. Somewhere there is a conversion, be it USD company -> ETF or at the latest dividend ETF USD -> EUR. This alone means that you have lost a portion if you look at the euro dividend. The euro-hedged variant looks correspondingly better

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BockaufDividenden@BockaufDividenden

4Wk

@lawinvest Yes, when I look at the dividend trend over the last few years, it hasn't increased consistently at all, but has risen and fallen in waves....I'll probably have to check again....

https://divvydiary.com/de/fidelity-global-quality-income-etf-IE00BYXVGZ48

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Dividende > Zinsen@GoDividend

4Wk

@lawinvest nothing to add. That's exactly how I see it.

Addition for @BockaufDividenden: you don't plan with dividends, you just enjoy what comes.

So just let it run its course and next year it might be completely different again

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BockaufDividenden@BockaufDividenden

4Wk

@GoDividend Well, let me put it this way, I chose the ETF specifically so that I would receive my quarterly distributions in February, May, August and November, which are planned accordingly. But I somehow overlooked the fact that the distribution amounts vary so much over the years...

Of course I'm always happy about dividends, but I plan them.

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Saschko@WarrenamBuffet

4Wk

@GoDividend exactly and you don't plan 2-3 years with an Etf but usually a little longer ^^

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BockaufDividenden@BockaufDividenden

4Wk

@lawinvest It feels like I can really leave my $IUIT, which I also have in another portfolio. There are so many overlaps, what's the point of $FGEQ if it doesn't have a steadily rising dividend focus.

Does anyone have any recommendations for me as an alternative to $FGEQ, as I would like to have steadily rising ETF dividend growth every quarter in February, May, August and November?

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Sina@lawinvest

4Wk

@BockaufDividenden I can't offer you a steady increase. I think $TDIV is great because it does something "different" and gets something out of it, especially in difficult market times

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BockaufDividenden@BockaufDividenden

4Wk

@lawinvest I also have this ETF and am very satisfied with it so far. But it pays out in March, June, September and December :)

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Iwas M.@SSIT

4Wk

My guess: Due to changes in the index composition, more and more dividend growth stocks are being weighted and fewer stocks with higher payouts. As a result, dividends have not been rising recently. In the long term, dividends should then rise again.

However, with stocks such as Alphabet, Salesforce or Meta, the next dividend growth stocks threaten to follow in a few years, which could push the ETF's initial distribution down again. 😅

I think the only thing that helps here is to stay on the ball in the long term. ☺️

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Saschko@WarrenamBuffet

4Wk

@SSIT Perhaps currency fluctuations are also an issue?

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Iwas M.@SSIT

4Wk

@WarrenamBuffet definitely also 👍

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Alpalaka@Alpalaka

4Wk

Wasn't the ETF once a must-have for anyone who likes growth and dividends?

Where is it better than a classic dividend-paying World, for example $HMWO?
https://www.justetf.com/de/etf-comparison.html

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Golden Boy@randomdude

3Wk

@Alpalaka Well, fashions change quickly. All the long-term investors primarily buy what did well last year 😅

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❤️DIST-LOVE@DISTLOVE

4Wk

I'm sticking with it - things have gone really well so far, especially with dividends (growth). I'm not worried, I don't think it's going to go down any time soon.

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Fortunus@Quiny

4Wk

The performance is also lousy. In the meantime, I've stopped this and switched into a normal MSCI World + Dividend ETF.

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Variuzoo@Variuzoo

4Wk

@Quiny Which dividend ETFs did you use instead of the FGEQ?

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Fortunus@Quiny

4Wk

@Variuzoo $TDIV $LDEG + if necessary $LDME

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Yieldrology@Yield-Ahead

4Wk

@Quiny Finally another investor here in the community who has $LDEG on his radar and in his portfolio. ✌️Ich and the underlying index are excellent, if you can stomach the big chunk of finance.

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BockaufDividenden@BockaufDividenden

4Wk

@Quiny It's a real shame that the $IE00BMYDM919 doesn't pay out in February, May, August and November

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Fortunus@Quiny

4Wk

@BockaufDividenden In my opinion, there are more important factors. The main thing is not to pay out only once a year or so.

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BockaufDividenden@BockaufDividenden

4Wk

@Quiny In any case, there are many factors that are indisputable. I have various ETFs that pay out distributions at different times and combine certain themes. That's why I pay attention to the period in which the distributions are made. It's just a factor for me :)

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Daniel@trade_commander_2498

4Wk

I will wait for a suitable time and then sell the U.S. and therefore also the global (they are in my wife's portfolio)

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Duront@PapiFortuna

3Wk

What is the situation with A2AG1D? Is it more suitable for dividend growth? Is it currently at the level of a normal world ETF in terms of distribution?

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