OARDX
Invesco Rising Dividends-A
Introduction to Invesco Rising Dividends-A
The Invesco Rising Dividends-A fund, ticker symbol OARDX, is designed to achieve total return by investing primarily in common stocks of companies that either currently pay dividends or are expected to initiate dividend payments in the future. This fund places a strong emphasis on companies anticipated to grow their dividends over time, allocating 80% of its assets to such securities. As a large-cap growth fund, it aims to provide investors with capital appreciation through a diversified portfolio of established companies. Managed by Invesco, a reputable name in the investment industry, OARDX offers a strategic approach for investors seeking growth through dividend-paying stocks.
At A Glance
Executive Summary
OARDX focuses on dividend growth in large-cap stocks, with a 0.99% expense ratio and 31.08% 1-year return, ideal for growth-focused investors.
Focus on dividend growth in large-cap stocks. Strong 1-year return of 31.08%. Diversified sector allocation with tech emphasis.
Higher expense ratio compared to peers. Negative alpha indicating underperformance. Lower yield of 0.79% for income-focused investors.
Performance Amidst Market Dynamics
Invesco Rising Dividends-A has demonstrated a robust performance over the past year, with a notable 1-year return of 31.08%. This performance, however, is slightly below its benchmark, the S&P 500 Total Return Index, which posted a 37.62% return over the same period. Despite this, the fund’s focus on dividend growth stocks has allowed it to maintain a competitive edge in the large-cap category. The fund’s annualized returns over five years stand at 13.66%, showcasing its potential for long-term growth. Investors should note the fund’s negative alpha of -6.58%, indicating underperformance relative to its benchmark, which may be a consideration for those closely monitoring risk-adjusted returns.
Sector Allocation and Investment Strategy
OARDX’s investment strategy is heavily weighted towards the technology sector, which comprises 28.22% of its portfolio. This significant allocation reflects the fund’s focus on growth-oriented companies with strong dividend potential. Other notable sectors include healthcare (13.85%), financials (13.50%), and industrials (9.99%), providing a diversified exposure across various industries. The fund’s sector allocation is designed to capitalize on sectors with high growth potential while maintaining a balance to mitigate sector-specific risks. This strategic allocation aligns with the fund’s objective of achieving growth through dividend-paying stocks, making it an attractive option for investors seeking exposure to leading sectors in the economy.
Top Holdings and Market Cap Distribution
The fund’s top holdings include some of the most prominent names in the market, such as Microsoft Corp (7.44%), NVIDIA Corp (4.94%), and Apple Inc (4.86%). These companies are known for their strong market positions and consistent dividend growth, aligning with the fund’s strategy. The market cap distribution of OARDX is predominantly in extra-large (39.78%) and large-cap (35.98%) stocks, ensuring stability and reduced volatility. Medium-cap stocks make up 21.86% of the portfolio, providing a blend of growth potential and risk management. This distribution supports the fund’s goal of capital appreciation through investments in established companies with a track record of dividend payments.
Risk Metrics and Volatility Considerations
Invesco Rising Dividends-A exhibits a beta of 0.85, indicating lower volatility compared to the broader market. This lower beta suggests that the fund may offer a degree of protection during market downturns, appealing to risk-averse investors. However, the fund’s Sharpe ratio of -0.61 and Treynor ratio of -7.70 highlight challenges in achieving risk-adjusted returns. The fund’s standard deviation of 3.10% reflects moderate volatility, while its downside risk (UI) of 1.71 suggests limited exposure to significant losses. Investors should weigh these risk metrics against the fund’s growth potential, particularly in the context of its negative alpha and recent performance relative to its benchmark.
Comparative Analysis with Similar Funds
When compared to similar funds, OARDX’s expense ratio of 0.99% is higher than its peers, such as Touchstone LargeCap Focused-A (SENCX) and ClearBridge Appreciation-A (SHAPX), which have lower expense ratios of 0.01% and 0.0093%, respectively. Despite this, OARDX’s 1-year return of 31.08% is competitive, though slightly lower than ClearBridge Appreciation-A’s 31.50%. The fund’s yield of 0.79% is also lower compared to Alger Growth & Income-A’s 1.03%, which may be a consideration for income-focused investors. These comparisons highlight the importance of evaluating expense ratios and yields alongside performance metrics when selecting a fund.
Dividend Growth Focus and Investor Suitability
OARDX’s focus on dividend growth makes it particularly suitable for investors seeking capital appreciation through established companies with a history of increasing dividends. The fund’s emphasis on large-cap stocks provides a level of stability and reduced volatility, appealing to investors with a moderate risk tolerance. Its diversified sector allocation, with a significant focus on technology, positions the fund to benefit from growth trends in key industries. However, the fund’s higher expense ratio and lower yield may deter income-focused investors. Overall, OARDX is well-suited for growth-oriented investors looking to capitalize on dividend growth in large-cap stocks.
Conclusion: A Strategic Choice for Growth Investors
Invesco Rising Dividends-A stands out as a strategic choice for investors seeking growth through dividend-paying large-cap stocks. Its focus on companies with the potential for dividend growth, coupled with a diversified sector allocation, offers a compelling investment opportunity. While the fund’s expense ratio is higher than some peers, its strong 1-year return and emphasis on technology and healthcare sectors provide a solid foundation for long-term growth. Investors should consider OARDX if they are looking for a fund that balances growth potential with dividend income, making it an ideal addition to a growth-focused investment portfolio.
Similar Securities
JIDVX: Janus Henderson US Dividend Income-I | Dividend-Focused Equity Fund
JIDVX offers a 1.91% yield with a focus on U.S. dividend-paying equities, maintaining a competitive 0.79% expense ratio.
BIRAX: BlackRock Sustain Advntg LgCp Core-InvA | ESG-Focused Large Cap Fund
BIRAX offers a unique blend of growth and societal impact with a competitive 0.73% expense ratio and strong 1-year return of 37.91%.
AWSHX: American Funds Washington Mutual-A | Growth and Income with Large-Cap Focus
AWSHX offers a balanced approach with a 0.56% expense ratio, focusing on established NYSE stocks for growth and income.
IVNQX: Invesco Nasdaq 100 Index Fund-R6 | Growth Potential in Large Cap Stocks
IVNQX offers exposure to top Nasdaq companies with a competitive 0.29% expense ratio, focusing on large-cap growth.
SBSPX: Franklin S&P 500 Index Fund-A | Large Cap Growth Strategy
SBSPX offers S&P 500 exposure with a 0.54% expense ratio, closely tracking the index for large-cap growth.
Futher Reading
https://finance.yahoo.com/quote/OARDX/”>Yahoo: Invesco Rising Dividends-A
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