The Zacks Analyst Blog Highlights DIVN, LVHI, GCOW, KNGZ and FDV

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The Zacks Analyst Blog Highlights DIVN, LVHI, GCOW, KNGZ and FDV

For Immediate Release

Chicago, IL – October 22, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Horizon Dividend Income ETF DIVN, Franklin International Low Volatility High Dividend Index ETF LVHI, Pacer Global Cash Cows Dividend ETF GCOW, First Trust S&P 500 Diversified Dividend Aristocrats ETF KNGZ and Federated Hermes U.S. Strategic Dividend ETF FDV.

Here are highlights from Wednesday’s Analyst Blog:

5 Dividend ETFs Under $50 That You Can Buy Now

Wall Street has had a rough week as investors moved away from technology and artificial intelligence (AI)-related stocks amid rising oil prices, inflation concerns and fears of excessive borrowing to fund the AI boom.

The Nasdaq Composite suffered its worst weekly decline since June, while the semiconductor sector came under heavy selling pressure.

AI Valuations Face a Reality Check

After years of strong gains, AI-related stocks are facing growing scrutiny. Investors are questioning whether massive spending on AI infrastructure will generate sufficient returns and whether technology companies are taking on too much debt to sustain the boom. Intensifying competition, especially from China, in semiconductors has added to the pressure.

Hotter Inflation Complicates the Market Outlook

Investors have been facing fresh inflation concerns following hotter-than-expected wholesale price data. U.S. wholesale inflation recorded its biggest increase since 2022 (per CNBC), while consumer inflation remained well above the Federal Reserve's 2% target. Consumer prices rose 3.7% annually in September as gas prices surged.

The Iran-war-led surge in energy prices adds to concerns about inflationary pressures across the global economy. Persistent price pressures could limit the Federal Reserve's flexibility to ease monetary policy, adding another potential headwind for equities, particularly technology stocks whose valuations are sensitive to interest-rate expectations.

Time for Dividend Investing?

With market volatility picking up, investors may want to look beyond high-growth stocks and explore other areas of the market. In a volatile scenario, dividend ETFs normally come to the rescue. The hunt for dividends in the equity market never stops, no matter how it behaves.

After all, who doesn’t like a steady stream of current income along with capital gains? And if investors are mired in a web of equity market uncertainty, global growth worries and geopolitical crises, the lure of dividend investing increases further.

Investors should note that not all dividend stocks serve the same purpose. While the high-yield ones are known for offering hefty current income, stocks with dividend growth point to quality investing — a prerequisite to making money in a volatile environment.

Why Invest in Low-Priced Dividend ETFs?

With market valuations hovering at lofty levels, it is better to bet on low-priced ETFs. Low-priced securities are more affordable, as more shares can be purchased instead of a few higher-priced shares for the same amount.

Low-priced ETFs may offer higher growth potential. For example, if a stock is priced at $20 and increases by $1, that's a 5% gain. This is in contrast to stocks priced at $100 or above, which see a 1% gain if shares move up by $1.

Dividend ETFs Under $50

Horizon Dividend Income ETF – Closing price $31.17 (as of Oct. 16, 2026)

The actively managed fund invests primarily in dividend-paying U.S. large-cap stocks that either have paid a dividend in the prior 12 calendar months or are reasonably likely to, and that exhibit one or more traits like strong profitability, stable earnings, low volatility, attractive valuations or positive price trends. It also sells broad-market index call options to boost income and manage volatility. DIVN yields 3.89% annually.

The fund was up 3.7% over the past month (as of Oct. 16, 2026) and gained 3.4% last week. The fund has an asset base of over $300 million.

Franklin International Low Volatility High Dividend Index ETF – Closing price $42.80 (as of Oct. 16, 2026)

The underlying Franklin International Low Volatility High Dividend Hedged Index comprises equity securities of developed markets outside the United States with relatively high yield and low price and earnings volatility. LVHI yields 4.58% annually.

The fund is up 1.4% over the past month (as of Oct. 16, 2026) and gained 2.5% last week. The fund, up about 15% so far this year, has an asset base of over $6.0 billion.

Pacer Global Cash Cows Dividend ETF – Closing price $46.81 (as of Oct. 16, 2026)

The underlying Pacer Global Cash Cows Dividend Index uses an objective, rules-based methodology to provide exposure to global companies with high dividend yields backed by a high free cash flow yield.

The fund is up 2.2% over the past month (as of Oct. 16, 2026) and gained 3.7% last week. The fund has advanced about 12.4% so far this year. It has an asset base of over $3.5 billion.

First Trust S&P 500 Diversified Dividend Aristocrats ETF – Closing price $41.65 (as of Oct. 16, 2026)

The underlying S&P 500 Sector-Neutral Dividend Aristocrats Index measures the performance of companies within the S&P 500 Index that have followed a managed dividends policy of increasing or maintaining dividends for at least 15 consecutive years and have a high indicated annualized dividend yield relative to other companies within the same Global Industry Classification Standard sector.

The fund is up 0.3% over the past month (as of Oct. 16, 2026) and gained 1.3% last week. The fund has advanced about 15% so far this year and has an asset base of over $60 million.

Federated Hermes U.S. Strategic Dividend ETF – Closing price $33.25 (as of Oct. 16, 2026)

The fund looks to offer a higher dividend yield than that of the broad equity market. The fund seeks to invest in high-dividend-paying stocks of U.S. companies with dividend growth potential.

The ETF had 12 companies that announced dividend increases in the third quarter. There were no dividend cuts in the quarter.

The $950-million fund is up 2.6% over the past month (as of Oct. 16, 2026) and gained 3.4% last week. The fund has advanced about 16% so far this year.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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Franklin International Low Volatility High Dividend Index ETF (LVHI): ETF Research Reports
 
Pacer Global Cash Cows Dividend ETF (GCOW): ETF Research Reports
 
First Trust S&P 500 Diversified Dividend Aristocrats ETF (KNGZ): ETF Research Reports

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research