During the interest rate cut cycle, high dividend assets often attract attention due to their unique income characteristics. In a low-interest-rate environment, high dividend ETFs can still provide investors with stable cash flow and relatively robust returns, making them a long-term winning choice that can span cycles.
Taking the SPDR S&P Dividend ETF as an example, this fund tracks the S&P High Dividend Aristocrats Index, which gathers a group of companies that have increased their dividends annually for more than 25 consecutive years.
As shown in the figure, the price change of SPYD is basically the same as that of the S&P 500 Index ETF SPY, both significantly outperforming the 20-year Treasury ETF TLT, while SPYD's dividend yield is 4.59%, much higher than SPY's 1.28%.
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