ETF Spotlight: iShares Dow Jones Select Dividend (DVY)

All News:

• Platinum and Palladium ETFs are Long-Term Bets
• Nasdaq ETF Near 200-Day Average as Apple, Cisco Weigh
• Bank ETFs Hit Again on Economy, Capital Levels

ETF Spotlight on iShares Dow Jones Select Dividend (NYSEArca: DVY), part of a weekly series.

Assets: $4.2 billion

Objective: Tracks the Dow Jones U.S. Select Dividend Index

Holdings: Among the top holdings include Chevron (NYSE: CVX), McDonald’s (NYSE: MCD), Clorox (NYSE: CLX), Caterpillar (NYSE: CAT) and General Mills (NYSE: GE)

What You Should Know

• DVY currently yields 3.67%
• The expense ratio is 0.4%
• The sector breakdown is utilities (26.8%), consumer goods (18.4%), industrials (16.3%) and financials (14.8%)
• DVY is the largest dividend ETF in the industry

The Latest News

• Dividends give investors a good feeling about companies, which brings more investors, which pushes up the stock price – win-win
• Thanks to hefty bond sales, corporations are sitting on record amounts of cash and hoarding during the recession [Aristocrats vs. Achievers.]
• Russell 3000 companies have $2.9 trillion in cash – 19% more than a year ago
• 15% of companies in the Russell 3000 raised dividends in Q2, double from a year ago
• Bloomberg forecasts that 14% of companies will boost dividends within the next three months, up from 9.7% a year ago [Listen to ETF Trends Podcast 12: Dividend ETFs.]
• The tech sector is doing this too – not known for huge yields

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