SDVD: 8.5% Yield, Good Fundamentals, And A Red Flag
FT Vest SMID Rising Dividend Achievers Target Income ETF offers an 8.55% yield using a buy-write strategy in small and mid-caps. SDVD holds dividend growth stocks and sells short-term call options on the Russell 2000 Index. SDVD is well-diversified across holdings thanks to an equal-weight methodology, but is overweight in financials.
SDVD: Eat Your Cake And Keep It, Too - Tailored For Income Investors
The First Trust Vest SMID Rising Dividend Achievers Target Income ETF offers an 8.5% forward yield and aims for capital appreciation, making it attractive for income investors. SDVD's unique sector allocation, focusing on financials, industrials, and consumer cyclicals, positions it well for potential outperformance as interest rates fall. The ETF employs a dual strategy involving dividend growth picks and selling call options, providing a growing yield at a reasonable 0.85% expense ratio.
