I am sending this out on today’s dip in the price of Invesco (IVZ) to about $16 per share. This is below our bottom fishing.
I am buying IVZ today.
The dividend is huge, the balance sheet is great, the company is committed to payouts, ETF business is growing and QQQ is one of the top ETF in existence.
The company is beaten up on market sentiment and the company digesting Oppenheimer assets into ETF products. There are certainly some advisors flipping folks to other loaded funds, but there is also a huge movement to ETFS. With that being the case, Invesco will get a lot of that business.
Vanguard went through the process of moving a lot of people from mutual funds to ETFs and it was very successful. There was only minimal slippage. Invesco probably doesn’t have the tribe loyalty of Vanguard, but should hold onto most those assets which they were able to acquire at a discount.
Also, Europe put up some hurdles to American ETFs. Invesco will follow BlackRock’s iShares into Europe by jumping with the required paperwork. QQQ will do very well there.
I think this is a very low risk and now low volatility opportunity to pump dividends into your portfolio. The stock should rise 50-100% over the next 5-7 years (my typical fudgy outlook timeframe). With the dividend, it very likely to have a double or better within our 5-7 year outlook.