Many stocks are covered on a frequent basis just because “everyone” holds them. Walmart (WMT), McDonald’s (MCD), General Electric (GE) and the like — many people own them, and thus many people want more news on them.
But you and I aren’t the only people holding such widely known stocks. A large number of exchange-traded funds and mutual funds also have massive holdings in various stocks, be it because they’re part of an index, they meet particular financial standards or an active manager just plain likes them.
Which brings me to a list provided by ETF Channel: 25 Dividend Giants Widely Held by ETFs. Its a nifty list that provides exactly what’s advertised: 25 income stocks that are widely held in ETFs.
You’d have a hard time coming up with a lot of major beefs with many of these companies. There’s a reason so many funds hold them, and it’s not just herd mentality.
Still, one thing was notable about a few of these widely held income stocks — a few have been lacking on the dividend growth front. That’s not to say they’re awful holdings and will weigh heavily on a host of funds. But investors should realize that each has a couple holes, and that investors shouldn’t hold their breath on substantial dividend increases anytime soon.