Huge Dividend Index Rebalance Means Massive Buy Orders for 5 Stocks

The reallocation of the index means that any fund that tries to mirror the index will also need to adjust its holdings (i.e. SPDR S&P Dividend ETF).

24/7 Wall St.

dividendsOn the close Thursday, the S&P High Yield Dividend Aristocrats Index is set for a rebalance. What this means is the index will be rebalanced to reflect reweighting allocations across the stocks that make up the index. It also means there will be some serious buying and selling on the last print Thursday.

In a research note, the analysts at Cowen have calculated the buys and sells in the index based on the holdings in the SPDR S&P Dividend ETF, which essentially mirrors the index and will also rebalance. The Cowen analysts estimate there are 20 stocks rebalancing with greater than 50% of 10 day average volume. We screened the list for the five stocks that could see the highest amount of share count buying and that had the highest percentage of volume increase over the 10-day average.

United Bancshares Inc. (NASDAQ: UBSI) is estimated to see a gigantic buy…

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