“The rationale behind the strategy is this: Given that most large companies seldom adjust their dividend payouts in response to a decline in share price, a high dividend relative to a company’s stock price means that its business cycle and share price have reached their trough and are set to rise,” writes Morningstar analyst Robert Goldsborough.
ALPS currently offers two “dividend dogs” ETFs, including the ALPS Sector Dividend Dogs ETF (NYSEArca: SDOG) and the ALPS International Sector Dividend Dogs ETF (NYSEArca: IDOG). [Woof: Global Stocks Get Their Own Dividend Dog ETF]
For more information on new fund products, visit our new ETFs category.
Max Chen contributed to this article.