Some dividend ETFs emphasize yield while others focus on companies with long track records of boosting payouts. Look close enough, and investors can find both favorable traits under one umbrella.
The ALPS Sector Dividend Dogs ETF (SDOG) answers that call. The $1.34 billion SDOG, which tracks the S-Network US Equity WR Large-Cap 500 Index, equally weights the five highest-yielding stock from 10 of the global industry classification standard (GICS) sectors. That strategy results in a stout trailing 12-month yield of 3.48%, or nearly triple the S&P 500’s dividend yield. In fact, the dividend yield on the S&P 500 currently resides at the lowest levels in 50 years.
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Sectors are also equally weighted in SDOG so the ETF is overweight defensive groups, such as consumer staples and utilities, relative to the S&P 500 while being underweight technology. It’s a strategy that’s rewarded investors this year, as geopolitical tensions and widening market breadth have compelled investors to embrace defensive groups over growth fare. Year-to-date, SDOG is higher by nearly 10% while the S&P 500 is in the red. Plus, this ETF offers plenty of outlets for dividend growth.
SDOG Has the Dividend Goods
A large amount of SDOG holdings have dividend increase streaks that aren’t just measured in years. Rather, those runs are more accurately gauged in decades, which is good news for equity income investors seeking a basket of stocks with above-average yields and reliable payout growth. Some of those names also offer value, including Verizon Communications (VZ).
“Investors may be betting the company has turned the corner. Shares jumped nearly 12% on Jan. 30, when it reported better-than-expected fourth-quarter subscriber growth and revenue,” reported Ian Salisbury for Barron’s. “Analysts expect earnings to grow 4% in 2026. Despite the recent gains, Verizon trades at less than 10 times forward earnings.”
Best Buy is another example of an SDOG holding possessing the alluring combination of yield, dividend growth potential and value.
“Best Buy’s struggles in the e-commerce world are well known. But Wall Street analysts expect the company to eke out profit growth of 1% in 2026. The company, which increased its dividend by a penny to 96 cents last month, yields 6%,” according to Barron’s.
Not mentioned in the Barron’s article is tobacco giant Altria (MO). That SDOG holding is a “dividend king,” or one of the 57 companies with a dividend increase streak of at least 50 years. It sports a yield of 6.33% and is considered by some to be a prime dividend value play.
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VettaFi LLC (“VettaFi”) is the index provider for SDOG, for which it receives an index licensing fee. However, SDOG is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of SDOG.
