Investors love to have their cake and eat it too. That's especially true when it comes to equity income investing.
Some dividend ETFs emphasize yield while others focus on companies with long track records of boosting payouts. Look close enough, and investors can find both favorable traits under one umbrella.
The ALPS Sector Dividend Dogs ETF (SDOG) is capturing a market rotation away from technology stocks and toward companies in sectors viewed as less vulnerable to artificial intelligence disruption. Utilities and basic materials holdings lead gains while software names tumble.
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| CE Curtis Ellergodt Rothschild Investment LLC | 1,750 | $89,705 | $123,401.25 | $33,696.25 | 37.56% |
| JD Jim Dushek HARBOUR INVESTMENTS Inc. | 9,847 | $520,423.6 | $692,736.45 | $172,312.85 | 33.11% |
| CAL CoreCap Advisors LLC CoreCap Advisors LLC | 1,122 | $63,224.48 | $78,893.43 | $15,668.95 | 24.78% |
| MC Mike Clark Cassady Schiller Wealth Management LLC | 716 | $36,831.04 | $50,334.8 | $13,503.76 | 36.66% |
| TJ Taylor Jobe MKT Advisors LLC | 3,925 | $215,942.72 | $275,927.5 | $59,984.78 | 27.78% |
| ARCA Exchange | US Country |
The company's operations center around an index that is reconstituted annually, specifically on the third Friday of December. This index is distinctive because it is comprised exclusively of 50 stocks, all of which are included in the S&P 500, a principal benchmark index that captures the performance of U.S. large-cap stocks. The selection criteria for these stocks are quite specialized, focusing on the highest dividend yields. Specifically, the company selects the five stocks with the highest dividend yields from ten out of the eleven Global Industry Classification Standard (GICS) sectors that are represented in the S&P 500. The determination of these stocks is based on their dividend yields as of the last business day of November each year. This methodology underscores the company's dedication to offering investors exposure to high dividend-yielding U.S. stocks within the framework of a diversified index.
The company's flagship offering is centered around a unique financial instrument: the index. This index offers a meticulously crafted selection of stocks, providing both diversification and a focus on income through dividends. Below are the main aspects of the company's products and services:
The index undergoes a thorough reconstitution process once a year, on the third Friday of December. This process involves a complete evaluation and revision of the index constituents, ensuring the index remains reflective of the highest dividend yields across the selected sectors of the S&P 500.
Stocks are chosen based strictly on their dividend yields, with the company selecting the top five yielding stocks from ten of the eleven sectors of the S&P 500. This results in a focused portfolio of 50 stocks, aiming to provide an attractive income component to investors through dividends.
By limiting the selection to stocks within the S&P 500, the company ensures that its index is composed of large-cap, reputable companies. This constraint ensures a baseline level of stability and performance, as it includes only established companies that are significant enough to be part of the leading benchmark index for U.S. large-cap stocks.
The methodology ensures diversified exposure across the various sectors of the economy, as defined by the GICS. By selecting stocks from ten different sectors, the index avoids overconcentration in any single industry, thus providing a balanced and diversified portfolio that is designed to be resilient across different market conditions.