Dividend-News

Daily dividend news for investors in dividend stocks


SPHD: Use This High-Dividend, Low-Vol ETF For An Equity Pullback

Published Tue, 23 Jul 2019 06:45:00 -0400 on Seeking Alpha

Source: Brainstuck.com
My readers know that I am a big fan of low-volatility strategies. They may not always capture 100% of a raging bull market, but they also avoid drastic losses when equity markets swoon. In the long-run, you may be surprised that many low-vol strategies have similar if not better returns than their respective traditional strategies, but with much less volatility. The secret is in avoiding losses.
Think about this, if your portfolio loses 10% in any given period, it needs to generate 11% to get back to break even. While if your portfolio only declines 5%, it only needs to recover 5.26% to get back to break even. In other words, avoid big losses and you don't need big returns to generate a profit.
With markets beginning to show some liveliness, we believe it's a good time to start thinking about how to protect against a major market decline. One such way is the Invesco S&P Low Vol ETF (SPLV), which invests in the 100 least volatile stocks in the S&P 500 over the previous year and rebalanced quarterly. But SPLV only pays a 2% dividend.
On the other hand, the Invesco S&P 500 High Dividend Low Volatility Portfolio ETF (SPHD) pays a 4% dividend yield and exhibits lower volatility than the S&P 500 as well.
Invesco S&P 500 High Dividend Low Volatility Portfolio ETF SPHD tracks the performance of the S&P 500 Low Volatility High Dividend Index, which measures the performance of the 50 least volatile, high-yielding stocks in the... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
VANGUARD DIVIDEND APPRECIATION ETF 120.84   0.0 0.00 0.00 1.58

VANGUARD DIVIDEND APPRECIATION ETF - VIG
VANGUARD DIVIDEND APPRECIATION ETF - VIG  


Older articles featuring Vanguard Dividend Appreciation Etf (VIG):
There's Almost Always A Buying Opportunity After An Inverted Yield Curve
WisdomTree High Dividend ETF: Combining What's Classic With What's New
My Dividend Growth Rates
Revisiting A Dividend Portfolio Of The World's Best Dividend ETFs
Checking In On Our Dividend Growth Portfolios In 2019
In The Wake Of Ex-Dividend
Dividend Sanity In An Insane World
In 'This' Environment, Look For Dividend Growth Not High Dividends
Dividend Diligence: The Quant Model Speaks
NOBL: Stick With Dividend Aristocrats As Economic Fears Mount

More