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S&P Ultra Dividend Revenue ETF: 5.36% Yield

Published Wed, 13 Jun 2018 13:13:36 -0400 on Seeking Alpha

Investment thesis: This Oppenheimer ETF has been a great performer in delivering yield and capital growth for investors. While the underlying holdings offer diversified equity exposure, the emphasis on utility stocks might make some investors feel uneasy. Notwithstanding this, the 5.36% distribution yield is well established, and the fund has money saved for future use. Although quarterly distributions are less than ideal for retirees, RDIV can be a great pick for equity exposure and high current income.
Fund Overview - The S&P Ultra Dividend Revenue ETF (RDIV)
(Source: RDIV Factsheet)
This ETF has a unique revenue weighting investment strategy and focuses on deep value. Furthermore, with holdings in traditionally defensive sectors that pay high dividends, the fund seeks to deliver a high yield to investors. However, the trade-off for investing in high-yield sectors such as utilities and telecom has been largely flat performance over the past few years. A deep value strategy may be the key to unlocking both capital growth and high income within these conservative sectors.
Investing For Income
(Source: Original Image - Data from Yahoo Finance)
Notwithstanding the heavy emphasis on defensive sectors such as utilities and telecom, the fund managers have done a wonderful job of delivering yield. The 5.36% trailing 12-month yield is especially impressive without the benefit of using leverage. Although the ETF is still relatively new being launched in... Read more


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