Looking to Pair Your S&P 500 Exposure With a Dividend ETF? Here's Your Chance
On the lookout for a strategy to pair with the growth-heavy S&P 500? The index has presented some strong returns for investors YTD, yes.
SDOG: Did I Underestimate This 3.76% Yielding Dividend Dogs ETF?
SDOG is an equal-weight-by-sector large-cap ETF with a 3.76% expected dividend yield. Despite my recent cautionary note, SDOG has outpaced SPY by 3.69% over the last three months. Still, other high-dividend ETFs performed well over this period, including SCHD, DHS, SPYD, and to a lesser extent, DIV. My analysis compares SDOG fundamentally with all four of these. It reveals that SPYD's quality features, though improved from May, could still be lacking, leaving shareholders vulnerable in a market downturn. Its primary advantage is a 13.50x forward P/E.
Beat Cash Yields With This Dividend ETF
With three-year Treasury yields hovering around 3.9% as of Aug. 9, it may not be surprising that, by some estimates, there's $6.5 trillion sitting in money market accounts. Due to high interest rates, cash instruments are more appealing than they've been in years.
Why Now Could Be the Time for Equal-Sector-Weight ETF SDOG
Looking to make some portfolio changes following the past week's market tumult? ETFs can appeal as a flexible, transparent wrapper for all sorts of investment strategies.
SDOG: 4% Dividend Yield Isn't Enough For What These Dividend Dogs Sacrifice
SDOG's strategy is to select the five highest-yielding S&P 500 Index stocks from each of the 10 GICS sectors (excluding Real Estate) and weight them equally. It currently features an attractive 4.00% yield and has one of the lowest forward P/E's in the large-cap value category. However, that's where the good news ends. My analysis reveals SDOG scores near the bottom on other key factors like growth, momentum, quality, and sentiment. This unbalanced approach leads to inconsistent returns.
