SPDV tries to reflect the performance of the S&P 500 Dividend and Free Cash Flow Yield Index, which targets attractively valued U.S. large cap stocks that exhibit both a high dividend yield and sustainable dividend distribution characteristics. The underlying index shows a 3.68% dividend yield.
EEMD tries to reflect the performance of the S&P Emerging Markets Dividend and Free Cash Flow Yield Index, which targets attractively valued emerging market stocks that exhibit both a high dividend yield and sustainable dividend distribution characteristics. The underlying index shows a 5.29% dividend yield.
Both strategies focus on a way to balance current cash flow with future capital growth by honing in on two key valuation indicators to identify sustainable dividend-paying stocks offering fundamental value, dividend yield and free cash flow yield.
SPDV and EEMD try “to maximize your dividend yield and minimize your exposure to dividends cuts and dividend eliminators,” McGray said.
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