SPDR S&P Dividend
SPDR S&P Dividend (SDY) is focused on those rare companies that have raised dividends for at least two decades. Yes, it’s a high bar — and a small group to choose from — but it should be attractive for investors who are looking for stability.
Unlike some other dividend ETFs, the fund is not chock-full of mega caps. In fact, you’ll find many mid-cap companies like Cincinnati Financial (CINF), Genuine Parts (GPC) and Linear Technology (LLTC). But with their 20-year dividend histories, you can count on these companies to keep paying out in the future.
The current yield it is at an attractive 2.76%, sweetening a very nice three-year average return of 18.28%.
Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.