This Dividend Fund Seeks Rising Dividends

Doug Fabian

Doug Fabian is known for his expert knowledge of ETFs, bear funds and enhanced index funds to profit in any market climate.

A dividend-driven exchange-traded fund (ETF) worth considering for income investors is SPDR S&P Dividend ETF (SDY), which I view as a slow-and-steady performer.

Advertisement.

The fund’s holdings feature companies within the S&P 500 that have maintained a rising dividend policy for at least 20 years. Some analysts suggest that stocks which pay and increase dividends consistently have better overall performance than the general market in the long run.

If true you agree, then it only makes sense to like a strategy that has beaten the market dependably in the past. For the past 12 months, this fund has outperformed the S&P 500 by a large margin, particularly considering that its holdings are all S&P companies themselves.

This fund is up 10.46% in that 12-month period, which is a good return for any virtually any investment. In comparison, its sister fund, the SPDR S&P 500 ETF (SPY), which is designed to mirror the performance of the S&P 500, is up only 2.6%. And that’s not counting SDY’s 2.36% dividend yield. The expense ratio for owning this fund is 0.35%, and its market cap is around $50 billion.

Advertisement.

sdy07

View the current price, volume, performance and top 10 holdings of SDY at ETFU.com.

The largest holdings in this fund at the moment include HCP Inc. (HCP), 2.88%; AT&T Inc. (T), 2.02%; Chevron Corp. (CVX), 1.73%; Realty Income Corp. (O), 1.68%; and National Retail Properties Inc. (NNN), 1.64%.

Even though this fund’s strategy won’t amaze your friends, its performance might very well amaze you. If you’re looking for a fund that can provide more upside in the right circumstances than its simple presentation may suggest, SPDR S&P Dividend ETF (SDY) might be the fund you’re looking for.

Advertisement.

As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an email. You just may see your question answered in a future ETF Talk.

share on:
share on:

PREMIUM SERVICES FOR INVESTORS

Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

  • Forecasts & Strategies
  • Home Run Trader
  • Fast Money Alert
  • Five Star Trader
  • TNT Trader
LEARN MORE HERE

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

  • Cash Machine
  • Premium Income PRO (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Breakout Options Alert
  • Hi-Tech Trader
LEARN MORE HERE

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

  • Successful Investing
  • High Velocity Options
  • Intelligence Report
  • Bullseye Stock Trader
  • Eagle Eye Opener
LEARN MORE HERE

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

  • Retirement Watch
  • Retirement Watch Spotlight Series
  • Lifetime Retirement Protection Program
LEARN MORE HERE

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

  • Investment House Daily
  • Stock of the Week
  • Technical Traders Alert
  • Rapid Profits Stock Trader
LEARN MORE HERE

DividendInvestor.com

Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

  • Dividend Investor
LEARN MORE HERE

George Gilder

George Gilder is the most knowledgeable man in America when it comes to the future of technology and its impact on our lives.  He’s an established investor, bestselling author, and economist with an uncanny ability to foresee how new breakthroughs will play out, years in advance.

Product Details

  • Technology Report
  • Technology Report PRO
  • Moonshots
  • Private Reserve
  • Millionaire Circle
LEARN MORE HERE

DayTradeSPY

DayTradeSPY was founded by head trader Hugh Grossman, a retired internal auditor for a Fortune 500 company. After years of first-hand experience trying out one trading strategy after another, Hugh instead developed his own trading system centered around day trading SPY options. That’s it... Nothing else.

Product Details

  • Trading Room
  • Pick of the Day
  • Inner Circle
  • Online Workshops
LEARN MORE HERE