Loading…
Loading…
The AAM S&P 500 High Dividend Value ETF (NYSEARCA:SPDV) screens the S&P 500 for companies that pair above-average yields with above-average free cash flow, then equal-weights five names from each of ten sectors. SPDV functions as a future-aristocrats farm system, and the holdings list reads like one: a confirmed Dividend King, two near-aristocrats, and three... Equal Weighted Dividends Across 54 Stocks Deliver 24.7% Returns and Growing Payouts
The AAM S&P 500 High Dividend Value ETF (NYSEARCA:SPDV) screens the S&P 500 for stocks combining the highest yields with the strongest value characteristics, then caps sector exposure to prevent concentration in utilities and REITs.
Most financial advisors will tell you about a dozen or so dividend EFTs that they tell everyone about.
The AAM S&P 500 High Dividend Value ETF (NYSEARCA:SPDV) generates income by holding dividend-paying stocks.
AAM S&P 500 High Dividend Value ETF (NYSEARCA:SPDV - Get Free Report) was the target of a large growth in short interest in the month of January. As of January 15th, there was short interest totaling 12,279 shares, a growth of 190.8% from the December 31st total of 4,222 shares. Approximately 0.6% of the company's
SPDV is comprised of 5 stocks from each of the 11 GICS sectors, with selections based on dividend yield and free cash flow yield. I estimate a 3.88% forward yield. Total returns since its inception were poor, with my previous review revealing low growth and low quality. However, those metrics have improved, resulting in an upgraded "hold" rating. Even so, SPDV has quality deficiencies compared to the 3.86%-yielding SCHD, and its dividend growth features are poor and inconsistent due to its reconstitution process.
Global dividends hit a record high in 2024, with $606.1 billion paid in Q2 alone, as tech giants like Meta and Alibaba entered the dividend-paying market. Equity yields remain low compared to bonds, with the FTSE All-World index yielding 1.86% in September 2024, while the FTSE World Government Bond index yield to maturity stood at 3.03%. Dividend-focused strategies can enhance income potential in equity portfolios by prioritising high-dividend-paying sectors and reducing risks of dividend cuts.
Dividend stocks, including REITs and utilities, have underperformed in recent years. Rising interest rates and increasing costs of capital have contributed to the underperformance. The beginnings of a strong dividend stock rally may have just begun on the back of some very good news.