“The cycle, they say, most closely resembles that of 2004, and regulated utilities outperformed the broader market by 6% and 18% in the three and 12 months following the first hike that year,” according to Seeking Alpha. “As for this particular moment, Barclays says a flattening yield curve, increasing high-yield default rates, and a strong greenback impacting S&P earnings relative to utilities all bode well for the sector.”
“In conclusion, DVY is very unique dividend ETF. Since it gives a much different exposure to investors, I see it as an excellent complement to those who own other traditional dividend ETFs. Overall, the fund is a solid pick for any dividend investor seeking attractive distributions and relatively low volatility,” according to a Seeking Alpha analysis of DVY.
iShares Select Dividend ETF
Tom Lydon’s clients own shares of DVY.