(FDRR) Fidelity Dividend Rising - Ratings and Ratios

The Fidelity® Dividend ETF for Rising Rates (FDRR) is designed to capitalize on the performance of large and mid-cap dividend-paying stocks that not only maintain but grow their dividend payouts, particularly in environments where 10-year U.S. Treasury yields are on the rise.

This ETF achieves its objective by investing at least 80% of its assets in securities that are part of its underlying index, as well as depository receipts that represent these securities. The underlying index is specifically tailored to track companies with a history of paying dividends and a potential for continued dividend growth, alongside a positive correlation with increasing long-term U.S. Treasury yields.

From a technical standpoint, FDRR has shown a bullish trend, with its last price at $53.60, above both its 20-day Simple Moving Average (SMA) of $52.17 and its 50-day SMA of $50.31. The 200-day SMA stands at $50.67, further indicating an overall upward trajectory. The Average True Range (ATR) is $0.56, translating to a volatility of about 1.05%. Given these technical indicators, its reasonable to anticipate that FDRR will continue its upward momentum, potentially testing new 52-week highs.

Fundamentally, the Assets Under Management (AUM) for FDRR stand at $559.78 million USD, indicating a moderate level of investor interest. The ETFs focus on dividend-paying stocks with a positive correlation to rising 10-year Treasury yields positions it favorably in a rising interest rate environment. As interest rates are expected to continue fluctuating based on inflation and economic growth, FDRRs underlying index should benefit from its constituent stocks ability to grow dividends and maintain a positive correlation with rising yields.

Forecasting ahead, based on both technical and fundamental data, FDRR is poised for potential growth. Technically, breaking above its current 52-week high of $53.60 could see it targeting new highs. Fundamentally, its alignment with rising interest rates and focus on dividend growth stocks should attract investors seeking yield in a rising rate environment. Therefore, a potential target could be in the range of $56 to $58 in the next 6 to 12 months, assuming the current trends in interest rates and dividend growth continue.