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iShares Select Dividend ETF: Unraveling The Secrets Of Dividend Growth

Published Mon, 09 Nov 2020 08:45:13 -0500 on Seeking Alpha

Seeking AlphaETF AnalysisiShares Select Dividend ETF: Unraveling The Secrets Of Dividend GrowthNov. 9, 2020 8:45 AM ET|| About: iShares Select Dividend ETF (DVY), Includes: SDYby: Chetan WoodunChetan Woodun Medium-term horizon, ValueSummaryFirst, when looking for a dividend ETF, it is important to look for sector diversification as part of the holdings.
In this case, DVY includes about a hundred stocks spanning across many industries.
The ETF has underperformed when comparing the Total Return metric with a peer, but iShares' methodology in terms of dividend yield growth is superior.
In this economic environment characterized by high a uncertainty level, downside risks to dividends have been limited by investing in companies offering sustainable distributions.
We are living through an unprecedented period in the stock market, not knowing how this coronavirus situation will impact the economy with uncertainty persisting despite some euphoria after the elections results being announced.
The Fed’s stimulus package and actions have already had a positive impact on the stock market and, most probably, saved the economy from slipping into depression. Had it not been for the reassuring presence of Jerome Powell at the helm of the Fed, things would have been different.
Unless you are growth-focused or an individual stock picker, chances are that you are more of a passive investor looking to stick with some well-managed dividend ETF offering diversification across many sectors.
Such an opportunity is offered by the iShares Select Dividend ETF (Nasdaq: DVY).
Sector diversification
First and foremost, before even talking about the dividend aspect, an ETF is a diversification tool which makes possible investment in a wide range of sectors of the economy. For DVY, the most important ones are finance and utilities.
In this case, the ETF has 25 holdings in financials, a sector which, in contrast to the last recession in 2008, is currently trusted by... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
SPDR S&P DIVIDEND ETF 103.80   0.0 0.00 2.42 2.36

SPDR S&P DIVIDEND ETF - SDY
SPDR S&P DIVIDEND ETF - SDY  


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