The major market indexes held modest gains Monday ahead of a federal tax reform vote later this week, as General Electric (GE) weighed on blue chips.
PowerShares QQQ Trust (QQQ) was up 0.2%, while SPDR Dow Jones Industrial Average (DIA) and SPDR S&P 500 (SPY) were up 0.1% each. Foreign stocks lagged with iShares MSCI EAFE (EFA) fell 0.5%.
General Electric weighed on the Dow with an 8% drop after the diversified giant offered weak profit guidance and slashed its dividend by half. But Procter & Gamble (PG), McDonald's (MCD) and Home Depot (HD) added about 1% each.
Banks, utilities and metals miners led the upside among sector funds in the stock market today. SPDR S&P Regional Banking (KRE) and SPDR S&P Bank (KBE) rose more than 1% apiece as they traded near their 50-day moving average lines.
SPDR Utilities (XLU) added 1%, clearing a 56 flat-base buy point. Shares advanced 2% from a mid-August breakout from a flat base to the start of the most recent pattern.
SPDR Consumer Staples (XLP), which holds P&G and Wal-Mart, gained 0.5%. It retook its 50-day line on Friday and is 4% below its 52-week high as it works on the right side of a five-month flat base.
Energy, retail and biotech underperformed.
Like Big Dividends?
If you like dividends, here are several funds to check out, including one that owns big yielders like AT&T (T) and IBM (IBM).
The top two dividend exchange traded fund performers this year are focused outside the U.S. WisdomTree Europe SmallCap Dividend (DFE) led with a 28.9% year-to-date gain through Nov. 8, followed by WisdomTree Japan SmallCap Dividend's (DFJ) 28.1% return. Both funds have outperformed the S&P 500 by a wide margin.
The rest of the list is predominantly composed of U.S. ETFs. Two other foreign plays made the 13-fund cut: SPDR S&P Emerging Markets Dividend (EDIV) and SPDR S&P International Dividend (DWX), with respective YTD returns of 18.1% and 15.8%.
The No. 3 spot was claimed by WisdomTree U.S. Quality Dividend Growth (DGRW), which was up 21% through Nov. 8. IShares Core Dividend Growth (DGRO) was fifth with a 17.7% gain.
IBD'S TAKE: On the lookout for ETF ideas that may be worth a closer look? Check out IBD's weekly ETF Leaders column for a featured fund and a list of highly rated ETFs.
Most of these dividend funds are extended from a buy point. But SPDR S&P Dividend (SDY), the last name on the list, is pulling back toward its 50-day moving average. If it finds support there and stages a solid rebound off the line, that would set up a potential buy area.
Shares advanced 3% from a late September breakout to its Oct. 24 intraday high. Or, taken from its last touch of the 50-day line in early September, SDY rose more than 5%.
While the fund's 9.8% YTD gain lags the S&P 500 index, its three-year average annual return of 10.2% is in line with the broader index's 10.8%. SDY offers a higher annualized yield of 2.4% vs. the S&P 500's average 1.9% payout.
Consumer staples accounted for SDY's biggest sector weighting as of Nov. 8 at nearly 16% of assets. Industrials made up 15%, financials 14%, and utilities and consumer discretionary, 11% each. Top holdings included Tanger Factory Outlet Centers (SKT), AT&T and IBM. Those three stocks yield annualized dividends of 6%, 5.9% and 4%, respectively.
The 12-year-old fund, which tracks the S&P High Yield Dividend Aristocrats Index, has amassed $16 billion in assets. Its expense ratio is 0.35%. The index is designed to measure the performance of companies in the S&P 1500 that have consistently increased dividends every year for at least 20 years.
Thursday's pick, ProShares Ultra Russell 2000 (UWM), is still testing support at its 50-day line.
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