SPHD currently sports a dividend yield of 3.9%, which is more than double the dividend yield on the S&P 500 and well above what investors will find on 10-year Treasuries. Additionally, SPHD pays its dividend monthly, boosting its allure for investors looking for a steady income stream.
SPHD’s combination of dividends and low volatility could act as an alternative to traditional yield-generation investments, provide a steady stream of income from quality stocks and temper volatility over the long haul.
“When investors are moving toward retirement, many are starting to focus on dividend yields. This fund would be a more logical choice for someone who wanted to get higher yields but didn’t want full market exposure. In regards to retirement, SPHD also is heavily allocated in consumer staples, which makes sense for an investor who is looking to take smaller losses during a recession,” according to Seeking Alpha.
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