iShares DJ Select Dividend Fund
The iShares DJ Select Dividend Fund (DVY) looks strictly toward the highest dividend-yielding stocks in the S&P 500 universe — for better or for worse.
DVY is a big, liquid fund with more than $12 billion in assets and volume of more than 1 million units traded daily. The fund’s 100 holdings are fairly conservative, including just under 30% of its assets in utilities, and skews toward large-cap stocks. Its current top positions are Lorillard (LO), Lockheed Martin (LMT) and Chevron (CVX) at 3.7%, 3% and 2.2% of the portfolio, respectively
Don’t confuse “high-dividend” stocks with laggards, however: The DVY has returned over 16% annually in the past three years, and is up 15% year-to-date, slightly edging the S&P 500. DVY makes distributions quarterly.