Stagnant Income Weighs On The SPDR Dividend ETF

Stagnant Income Weighs On The SPDR Dividend ETF

A Seeking Alpha Contribution


  • SDY tracks the S&P High Yield Dividend Aristocrats Index.
  • SDY is the third-largest dividend ETF, with more than $10 billion in assets.
  • SDY hasn’t seen consistent dividend growth since the financial crisis.

Dividend ETFs are more popular than ever, thanks to the central banks of the world giving us zero interest rate policies (ZIRP), but the word “dividend” in an ETF means different things in different funds. Some funds target very high-yields, such as the Global X Super Dividend ETF (NYSEARCA:SDIV), but others such as the Vanguard Dividend Appreciation ETF (NYSEARCA:VIG) aim for growth, while WidsomTree has an entire line-up of ETFs that use dividends as a selection factor in their indexes. Most investors are probably looking for rising dividends and assume that most common stock dividend ETFs provide it – but that is an incorrect assumption.

SPDR Dividend ETF (NYSEARCA:SDY) is the third-largest dividend ETF, the last of the three currently above $10 billion in assets, and also one of the oldest, launched in 2005….To Continue Reading Please, Click Here.

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