ETF Trends
ETF Trends

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

Go here for more ETF Spotlights.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.