SDOG tries to reflect the performance of the S-Network Sector Dividend Dogs Index, which applies the “Dogs of the Dow Theory” on a sector-by-sector basis using the S&P 500 with a focus on high dividend exposure.
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“Stocks have high yields for two reasons: 1) Firms are very generous or 2) share prices have been beaten down enough to give it a high yield. Any “dogs” strategy involves buying whatever stocks underperformed in the past year. The idea is that last year’s losers can become the next year’s winners as investors try to take advantage of more attractive valuations and higher dividend yields as a result of their losses,” according to InvestorPlace.
Top holdings in SDOG include Dow components Pfizer (NYSE: PFE) and Johnson & Johnson (NYSE: JNJ) as well as AT&T (NYSE: T).
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ALPS Sector Dividend Dogs ETF