Dividend-News

Daily dividend news for investors in dividend stocks


Oppenheimer Ultra Dividend ETF: Better Than Its State Street Cousin?

Published Mon, 01 Apr 2019 15:40:29 -0400 on Seeking Alpha

It is no secret that I am a fan of dividend stocks.
Based on my research, this class of securities not only makes sense for income-seeking equity investors, but also possibly for those with a long-term growth investment objective as well. This seems to be the case because dividend stocks have historically produced better returns than the S&P 500 (SPY) fairly consistently - from a risk-adjusted and, in many cases, even absolute perspectives. This is more so the case when the dividend payments are "dripped" back into the portfolio.

Credit: Blominvest Bank
Not long ago, I looked at State Street's SPDR Portfolio S&P 500 High Dividend ETF (SPYD) and concluded that this fund was "a good starting point for those looking for simplicity and low cost in dividend investing". Today, I turn my attention to one of its close cousins, the Oppenheimer S&P Ultra Dividend Revenue ETF (RDIV), and ask myself: how do these two funds compare, and is one fund clearly superior than the other?
At first glance
Both ETFs have a similar, general objective of investing in a group of companies that have been issuing large dividend payments relative to their stocks' market value (i.e. high yielding). This strategy might be uncomfortable for the more conservative investor, since robust yields could be a reflection of the cheaper yet riskier nature of the names contained in the portfolio.
That said, the ETFs address stock selection a bit differently. State Street's SPYD... Read more


SPYD - SPYD
SPYD - SPYD  


Older articles featuring Spyd (SPYD):
5%+ Dividend Yield Portfolio: Coping With Existential Dread (May 2019 Review)
First 2019 Update To Steve's Dividend Portfolio And Strategy For Replacing My Salary With Dividend Income
5%+ Dividend Yield Portfolio: The Number Of Stocks To Own (Apr 2019 Review)
International Select Dividend ETF: Worth The Hassle?
VHYAX: A Dividend Mutual Fund With Diversification
Swap An S&P 500 ETF For WisdomTree's Quality Dividend Growth
Lower Risk, Higher-Yield Portfolios Of Funds
Getting Creative In The Hunt For Yield
5%+ Dividend Yield Portfolio: Profiting Handsomely From Volatility (Jan 2019 Review)
VYM: Falling Short In High Yield Objective

More