By Deanna Pan
Investing in companies that regularly raise their dividends is a popular strategy that marries the lure of cash with the hunt for consistent growth. SPDR S&P Dividend is an exchange-traded fund that generates a stream of growing income from a portfolio of some of America’s most steadfast companies.
The ETF tracks the S&P High Yield Dividend Aristocrats index, which holds the 60 highest-yielding stocks in the S&P Composite 1500 that have raised their payouts at least 25 years in a row (the S&P 1500 is an index of small, midsize and large companies). The stocks are weighted according to yield, although no issue may account for more than 4% of the ETF, and S&P rebalances the holdings quarterly.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The result is a portfolio of established firms with records of steady growth. Beyond the ETF’s biggest positions, many holdings are household names, including Coca-Cola, Johnson & Johnson and Procter & Gamble. The presence of many makers of consumer necessities, which tend to hold up well during hard economic times, helps explain why the ETF performed better than the overall market and some of its peers during the 2007–09 rout.
As its performance over the past year suggests, the ETF is likely to lag during robust bull markets. But if you’re looking for a decent-yielding ETF that’s likely to boost distributions in the future, you’ll be hard-pressed to find a better one.
-
Medicare Prior Authorization Expands to Ambulatory Surgical CentersStarting in December, Medicare will begin requiring prior authorization for certain procedures when performed in ambulatory surgical centers.
-
Frontier’s GoWild! Annual Flight Pass: Is the $299 All‑You‑Can‑Fly Deal Worth It?Frontier’s GoWild! Pass offers unlimited flights for $299, but blackout dates, standby rules, and fees apply. See who benefits and if it’s worth it.
-
The 5 Best Actively Managed Fidelity Funds to Buy and Holdmutual funds Sometimes it's best to leave the driving to the pros – and these actively managed Fidelity funds do just that, at low costs to boot.
-
The 12 Best Bear Market ETFs to Buy NowETFs Investors who are fearful about the more uncertainty in the new year can find plenty of protection among these bear market ETFs.
-
Don't Give Up on the Eurozonemutual funds As Europe’s economy (and stock markets) wobble, Janus Henderson European Focus Fund (HFETX) keeps its footing with a focus on large Europe-based multinationals.
-
Vanguard Global ESG Select Stock Profits from ESG Leadersmutual funds Vanguard Global ESG Select Stock (VEIGX) favors firms with high standards for their businesses.
-
Kip ETF 20: What's In, What's Out and WhyKip ETF 20 The broad market has taken a major hit so far in 2022, sparking some tactical changes to Kiplinger's lineup of the best low-cost ETFs.
-
ETFs Are Now Mainstream. Here's Why They're So Appealing.Investing for Income ETFs offer investors broad diversification to their portfolios and at low costs to boot.
-
Do You Have Gun Stocks in Your Funds?ESG Investors looking to make changes amid gun violence can easily divest from gun stocks ... though it's trickier if they own them through funds.
-
How to Choose a Mutual Fundmutual funds Investors wanting to build a portfolio will have no shortage of mutual funds at their disposal. And that's one of the biggest problems in choosing just one or two.
