db-X funds, Deutsche Bank's structured funds division, has launched a fund that gives investors US dividend-focused exposure.
The DB Platinum Croci US Dividends fund provides returns linked to a US Dividends-Net Return Index, which aims to identify shares in the S&P 500 with above average and sustainable dividend yields.
The process then selects a maximum 40 shares with what appear to be the most favourable price-to-earnings ratios under a cash-return-on-capital-invested methodology.
It aims to select companies with sustainable dividend potential by excluding stocks paying zero and below-average dividends, as well as those with the lowest cash returns, highest financial leverage and highest price risk. Financial stocks and stocks with low liquidity are also excluded.
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