(FDD) First Trust STOXX European - Ratings and Ratios

The First Trust STOXX European Select Dividend Index Fund (FDD) is an exchange-traded fund that focuses on high dividend-yielding European stocks. The funds investment strategy is to track the STOXX European Select Dividend Index, which comprises 30 European companies with a history of paying consistent dividends.

The funds underlying index is designed to capture the performance of European companies with a strong dividend payment history, while also considering factors such as dividend growth rate and dividend payout ratio. Specifically, the index selects companies with a non-negative five-year dividend-per-share growth rate and a dividend-to-earnings ratio of 60% or less, indicating a sustainable dividend payment policy.

From a technical analysis perspective, FDDs price action suggests a potential bullish trend. The funds last price is $15.33, with a 20-day simple moving average (SMA) of $15.37, indicating a possible breakout above the short-term average. The 50-day SMA is $14.87, and the 200-day SMA is $12.73, suggesting a longer-term uptrend. The average true range (ATR) is 1.05%, indicating relatively low volatility.

Considering the funds fundamental data, the assets under management (AUM) stand at $552.53 million, indicating a moderate level of investor interest. The funds investment objective is to provide exposure to high-quality European dividend-paying stocks, which can be an attractive strategy in a low-interest-rate environment.

Based on the technical and fundamental data, a potential forecast for FDD is that it may continue to trend upwards, driven by the funds focus on high-quality European dividend-paying stocks. If the 20-day SMA is breached, the next resistance level is likely to be around $15.53, the 52-week high. Conversely, a decline below the 50-day SMA could signal a potential correction, with support likely to be found around $14.50. Overall, FDD appears to be a viable investment option for those seeking exposure to European dividend-paying stocks.