With a new year and a new set of market conditions comes an opportunity to refresh. Top dividend ETF SDOG, for example, recently saw its index updated, with several stocks cycling in and out. Given the level of volatility and potential risk in markets right now, a dividend ETF could bolster investors’ income. Current income, especially for those at or near retirement, could really help if conditions dip. SDOG’s moves may help indicate which firms could offer that kind of boost to portfolios.
The ALPS Sector Dividend Dogs ETF (SDOG ) charges a 36 basis point fee to track the S-Network Sector Dividend Dogs Index. The strategy offers a 3.72% trailing 12-month yield as of February 18, per SS&C ALPS data. Specifically, the strategy’s index provides equally weighted exposure to the five highest-yielding stocks in 10 sectors across the 500 largest firms in the U.S.
What moves, then, has the dividend ETF made? Making the adjustments in December, SDOG added some intriguing names. The ETF added 16 firms and dropped 17, per VettaFi data.
Dividend ETF SDOG Makes Updates
For example, the ETF added some major, reliable names. SDOG added McDonald’s Corporation (MCD), CVS Health Corp. (CVS), and Lockheed Martin Corporation (LMT), to name a few. Those three firms represent strong, long-term options, which help meet the ETF’s equal weight “Dogs of the Dow”-inspired approach. Per YCharts, the firms offer 2.3%, 4%, and 3.1% in forward dividend yields, respectively.
At the same time, the strategy dropped some well-known firms. SDOG’s index dropped 3M Company (MMM), Home Depot, Inc. (HD), and RTX Corp (RTX). Those firms offer a 1.96%, 2.2%, and 2% in forward dividend yields, respectively.
Moving forward, the dividend ETF’s balanced exposure to dividend players could help investors as the market broadens. For those looking to add a diversified set of exposures to current income payers, SDOG may be worth watching.
For more news, information, and analysis, visit the ETF Building Blocks Channel.
VettaFi LLC (“VettaFi”) is the index provider for SDOG for which it receives an index licensing fee. However, SDOG is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of SDOG.
