If fully invested, CDC’s dividend yield at the end of the third quarter was a tidy 3.64%, or 130 basis points above where 10-year Treasury yields closed Monday.
CDC’s admirable yield is fostered in part by its 38.4% weight to the utilities and consumer staples sectors. The ETF’s 22.2% utilities weight is one of the largest among dividend ETFs and that has been a positive in a year which that sector is the top performer in the S&P 500. [Winning: Dividend ETFs With Big Utilities Weights]
CDC’s value tilt comes by way of a 31% combined weight to the financial services, consumer discretionary sectors. The ETF’s does not allocate more than 1.52% of its weight to a single holding. CDC’s holdings include Wal-Mart (NYSE: WMT), McDonald’s (NYSE: MCD), Kimberly Clark (NYSE: KMB), Johnson & Johnson (NYSE: JNJ), Clorox (NYSE: CLX), Consolidated Edison (NYSE: ED) and Cincinnati Financial (NasdaqGS: CINF), all of which are members of the S&P 500 Dividend Aristocrats Index, which only includes companies that have increased their dividends for at least 25 consecutive years.
CDC touched a new all-time high on Monday.
Compass EMP US EQ Income 100 Enhanced Volatility Weighted Index ETF
