Unlocking the Power of SDY: A Deep Dive into the SPDR® Dividend ETF and Its Yield History
SDY - Market Position
| Ticker Symbol | Product Type | Asset Class | Strategy | Payment Frequency | Geographic Focus | Expense Ratio | Sponsor |
|---|---|---|---|---|---|---|---|
| SDY | ETF | Equity Dividend ETF | High Dividend Yield | Quarterly | US Domestic | 0.35% | SSGA |
SDY Overview - SPDR S&P Dividend ETF
The SPDR S&P Dividend ETF (SDY) is a renowned investment vehicle designed to track the performance of high-dividend-yielding companies within the S&P Composite 1500 Index. This ETF prioritizes companies with a strong history of consistent dividend payments, making it a favored choice among income-seeking investors.
SDY's strategy focuses on selecting companies with a proven track record of dividend growth, stability, and sustainability. By investing in such companies, SDY aims to provide investors with a steady stream of income through quarterly dividend distributions.
One of SDY's key features is its diversified portfolio, which includes companies from various sectors such as financials, utilities, consumer goods, and industrials. This diversification helps mitigate risk and exposure to any single industry's performance, enhancing the ETF's overall stability.
Investors are drawn to SDY not only for its dividend income but also for its potential for capital appreciation over the long term. The ETF's methodology of selecting companies with strong fundamentals and dividend growth potential aligns with the goals of many income-focused and growth-oriented investors alike.
Overall, SDY stands out as a reliable and well-established ETF in the dividend investing space, offering a blend of income generation, diversification, and potential for long-term growth.
SDY - Price / Yield
SDY - Portfolio and Asset Allocation
SPDR S&P Dividend ETF (SDY) boasts a diversified portfolio comprising top-performing companies across various sectors. Notably, MMM (3M Company) and O (Realty Income Corporation) hold significant weights, showcasing SDY's focus on high-dividend-yielding companies.
EIX (Edison International) and SO (The Southern Company) represent the utility sector, contributing to SDY's sector diversification strategy. CVX (Chevron) and XOM (Exxon Mobil Corp.) add energy sector exposure, balancing the portfolio's risk profile.
KMB (Kimberly Clark) and IBM (International Business Machines Corporation) contribute from the consumer goods and technology sectors, respectively, reflecting SDY's diversified approach.
SDY's portfolio is characterized by strong dividend yield and stability, with holdings like ABBV (Abbvie) and CVX (Chevron) offering consistent dividend payments and upside potential. The holdings' ratings ranging from Moderate Buy to Strong Buy indicate market confidence.
Overall, SDY's portfolio composition aligns with its dividend-focused investment strategy, providing investors with a blend of income generation and growth potential through a well-balanced and diversified selection of dividend-paying stocks.
Top 10 Holdings
As of April 23, 2024, the top 10 holdings of the SPDR S&P Dividend ETF (SDY) are:
| Name | Weight |
|---|---|
| 3M Company (MMM) | 2.19% |
| Realty Income Corporation (O) | 2.09% |
| Edison International (EIX) | 1.90% |
| Exxon Mobil Corp. (XOM) | 1.85% |
| Chevron (CVX) | 1.82% |
| The Southern Company (SO) | 1.71% |
| Kimberly Clark (KMB) | 1.70% |
| International Business Machines Corporation (IBM) | 1.70% |
| WEC Energy Group Inc (WEC) | 1.65% |
| Abbvie (ABBV) | 1.64% |
Asset Allocation
The SPDR S&P Dividend ETF (SDY) has the following asset allocation as of April 23, 2024:
| Sector | Weight |
|---|---|
| Industrials | 21.85% |
| Utilities | 16.78% |
| Consumer Defensive | 15.10% |
| Financial | 10.63% |
| Technology | 7.79% |
| Healthcare | 7.22% |
| Consumer Cyclical | 6.62% |
| Basic Materials | 5.68% |
| Real Estate | 4.17% |
| Energy | 3.99% |
| General | 0.18% |
Dividend Yield and Distribution History
| Section | Details |
|---|---|
SDY Dividend Data |
The SPDR S&P Dividend ETF (SDY) pays quarterly dividends. The most recent ex-dividend date was on March 15, 2024, with a dividend payment of $0.70786 per share on March 20, 2024¹. |
SDY Dividend Yield |
As of April 18, 2024, the 30-day SEC yield for SDY is 2.57%. This means that for every $100 invested in the fund, investors would receive $2.57 in dividends per year, assuming the yield remains constant. |
SDY Dividend History |
SDY has a history of paying quarterly dividends. The dividend payments may fluctuate based on the performance of the underlying dividend-paying stocks held by the fund¹. |
SDY Dividend Growth |
SDY's dividend payments are dependent on the dividend growth and performance of the underlying stocks in the fund's portfolio. The fund's investment strategy focuses on companies with a history of consistent dividend growth, which may contribute to increasing dividend payments over time. However, dividend growth is not guaranteed. |
SDY Dividend Stability |
SDY aims to provide a relatively stable income stream by investing in high-quality, dividend-paying stocks of larger U.S. companies. However, the dividend payments are not guaranteed and may be affected by changes in market conditions or the performance of the underlying stocks in the fund's portfolio. |
SDY - Chart
SDY - Comparative Analysis
Let's compare CGDV with prominent competitors, focusing on key aspects like performance, fees, and strategy: (as of Apr 2024)
| SDY | DVY | SPHD | |
|---|---|---|---|
| Investment Focus | High-dividend-yielding, large-cap U.S. stocks | High-yield U.S. stocks, weighted by dividend yield | Low-volatility, high-dividend-yield U.S. stocks |
| Current Yield | 2.57% | 3.42% | 3.75% |
| Expense Ratio | 0.08% | 0.35% | 0.30% |
| Investment Strategy | Passively tracks the S&P High Yield Dividend Aristocrats Index | Passively tracks the Dow Jones U.S. Select Dividend Index | Passively tracks the S&P 500 Low Volatility High Dividend Index |
| Strengths | Stable income from dividend payments, low expense ratio | Broad exposure to high-yield U.S. stocks, potential for higher returns | Low volatility, high dividend yield |
| Weaknesses | Less diversification than broader dividend ETFs, potential for market sensitivity | Potentially higher expense ratio than SDY, less emphasis on dividend consistency | Less emphasis on dividend growth, potential for lower returns in strong market conditions |
Dividend History (Last 5 distributions)
| Ex-Dividend Date | Cash Amount | Record Date | Pay Date |
|---|---|---|---|
| Mar 14, 2024 | $0.71 | Mar 19, 2024 | Mar 28, 2024 |
| Dec 14, 2023 | $0.98 | Dec 19, 2023 | Dec 27, 2023 |
| Sep 15, 2023 | $0.79 | Sep 20, 2023 | Sep 28, 2023 |
| Jun 16, 2023 | $0.81 | Jun 21, 2023 | Jun 29, 2023 |
| Mar 16, 2023 | $0.71 | Mar 21, 2023 | Mar 30, 2023 |
News
Technical Analysis
Additional Information and Risks
Conclusion and Risks:
The SPDR® S&P Dividend ETF (SDY) is a solid choice for investors seeking dividend income from high-yield dividend aristocrats within the S&P composite. With a policy of consistently increasing dividends every year for at least 20 consecutive years, SDY reflects a managed-dividends strategy that aligns well with long-term investment goals.
Investors benefit from total return performance linked to the S&P 500, providing a comprehensive view of stock price dynamics and dividend payment trends. The expense ratio of 0.35% is competitive, enhancing the dividend yield and payout ratio for shareholders.
Risks to consider include market volatility, as dividend stocks may be sensitive to economic cycles. Additionally, changes in dividend policies of index constituents could impact SDY's performance. Exchange-traded funds like SDY are subject to fees and expenses, affecting total returns over time.
Investors should review SDY's dividend history and top 10 holdings to gauge the fund's performance relative to the S&P high yield dividend aristocrats index. Overall, SDY offers a compelling opportunity for those seeking a blend of income and growth in their investment portfolios.