Importantly, SPHD’s 2014 dividend topped what the ETF paid last year. “The total dividends paid in 2014 is $1.082, which is 3.7% increase compared to dividends paid in 2013 ($1.043),” according to Stanford Chemist.
A trailing 12-month yield of 3.23% is 107 basis points above where 10-year Treasury yields closed Monday, but if there is a rub with SPHD it is, not surprisingly, the ETF’s defensive posture makes it look pricy relative to other dividend ETFs with smaller combined weights to the expensive consumer staples and utilities sectors. For example, SPHD’s P/E ratio of 20.4 is about 10% higher than VIG’s, according to Seeking Alpha.
Still, investors have embraced SPHD as evidenced by the ETF’s 2014 inflows of $86.4 million or nearly a third of the $255.7 million currently held by the fund. As an added bonus, SPHD pays a monthly dividend, a feature not found on many rival dividend ETFs.
PowerShares S&P500 High Dividend Portfolio
Todd Shriber owns shares of SPHD.