Global X SuperDividend ETF [SDIV] Stock Forecast

The Global X SuperDividend ETF (SDIV) has a lot of negativity on Seeking Alpha primarily due to its tantalizingly high dividend yield against relatively poor total return. SDIV's impressive track record in dividend consistency is noteworthy, as it has made monthly dividend payments for 12 consecutive years since its inception in 2011. SDIV's massive yield is undoubtedly appealing for income-oriented investors, but the total return just isn't there.

SDIV has underperformed this year, with a negative correlation to the Vanguard Total World Equity Fund. The ETF's strategy focuses on cyclical sectors and has high exposure to emerging markets, making it a risky play in the current economic climate. Despite low valuations, the high allocation to cyclical stocks may reflect a value trap rather than a value investment.

Global X SuperDividend ETF invests in the top 100 highest dividend-paying equities worldwide. The ETF has a trailing 12-month distribution of almost 15%, making it appealing to income-oriented investors. However, the high dividends are at the cost of other objectives such as risk management and total return. Political risk, high turnover, high management fees, a premium to NAV, and lack of upside participation dampen the initial appeal of the ETF.

International high-dividend equities are priced inexpensively compared to large-cap US stocks. I am upgrading the Global X SuperDividend ETF to a buy based on valuations and a potential bullish technical turn. SDIV features a net expense ratio of 0.58% and a trailing 12-month dividend yield of 13.9%, with high exposure to Mortgage REITs and the volatile Energy and Materials sectors.

Global X SuperDividend ETF holds about 100 high-yield stocks from developed and emerging markets. It invests heavily in the U.S. and in financials, especially mortgage REITs. The yield and valuation look extremely attractive.

When markets go haywire, some of the best investment opportunities can be found in monthly dividend stocks – especially when you need a slight income boost. Remember, high-yielding dividend stocks were among the top performers in a pitiful 2022 outing.

The Global X SuperDividend ETF offers an eye-popping 14.8% yield. However, the ETF's portfolio consists primarily of high risk securities in the mortgage trust market, which suggests that dividend cuts could negatively affect NAV performance and distributions.

Exchange-traded funds may help when planning required minimum distributions.

SDIV is one of the highest-yielding ETFs in the market, with a strong 13.6% yield. I think its a yield trap.

As the global economy falls into chronic stagnation, companies with poor balance sheets or competitive risks will likely experience significant declines. The ultra-high yield ETF SDIV is popular due to its double-digit yield despite chronic underperformance.

Global X SuperDividend ETF is a US stock and trading under the symbol SDIV

Global X SuperDividend ETF stock price is $22.005 today.

Yes, Global X SuperDividend ETF is a publicly traded company.