I am downgrading SDIV from buy to hold due to muted momentum and ongoing concerns about its heavy Real Estate sector exposure. SDIV offers a high 10.7% yield and an attractive valuation, but weak earnings growth and a concentrated value style limit its appeal. Technical analysis shows SDIV stuck in a trading range, with resistance near $24 and support around $20-$21, and only modest bullish signals.
High-yield strategies can boost returns, but focus on total return and reliable cash generation, not just dividend yields. Accidental high yielders are preferable over high-yield junk, which often have unsustainable dividends and declining businesses. SDIV's 10.96% yield is due to holding low-quality, high-risk stocks, making it a poor investment choice.
Dividend ETFs like SDIV can be unreliable, offering high yields by investing in low-quality companies with risky business models, leading to capital erosion. SDIV's stock selection criteria focuses on high dividend yields, resulting in geographic and sector concentration, exposing investors to significant political and sector risks. The ETF's high expense ratio, extreme turnover rate, and high volatility further diminish its appeal, making it a poor investment choice.
![]() SDIV 3 months ago Paid | Monthly | $0.2 Per Share |
![]() SDIV 4 months ago Paid | Monthly | $0.19 Per Share |
![]() SDIV 5 months ago Paid | Monthly | $0.2 Per Share |
![]() SDIV 6 months ago Paid | Monthly | $0.2 Per Share |
![]() SDIV 7 months ago Paid | Monthly | $0.19 Per Share |
![]() SDIV 3 months ago Paid | Monthly | $0.2 Per Share |
![]() SDIV 4 months ago Paid | Monthly | $0.19 Per Share |
![]() SDIV 5 months ago Paid | Monthly | $0.2 Per Share |
![]() SDIV 6 months ago Paid | Monthly | $0.2 Per Share |
![]() SDIV 7 months ago Paid | Monthly | $0.19 Per Share |
ARCA Exchange | US Country |
The fund is designed for investors seeking exposure to a diverse portfolio of high-dividend-yielding equity securities worldwide, including in emerging markets. It primarily focuses on investing in companies that are part of an underlying index composed of 100 equally-weighted firms known for their substantial dividend yields. By dedicating at least 80% of its total assets to securities within the underlying index, as well as in American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs) that are tied to these securities, the fund aims to replicate the performance of some of the highest yielding stocks globally. This strategic approach allows the fund to offer an investment solution that leverages dividends for potential income generation and growth, catering to income-focused investors who are also interested in capital appreciation through global market exposure.
The fund offers a range of investment products and services designed to meet the needs of investors looking for high dividend yields and global market exposure. These include: