Dividend Growth Investing, Retirement Income, Stock Market Investing, Stock Market Timing, Uncategorized

What is SDOG?

A reader commented on keeping it simple for my wife’s sake, and recommended we just go with SDOG. Not knowing what that was, I punched it up in my program, and looked it up on-line.

SDOG is the ALPS Sector Dividend Dogs ETF. It “provides high dividend exposure by selecting the five highest yielding securities in each of the 10 GICS sectors.” And, ALPS “Equally weights at the stock and sector level providing diversification while avoiding sector biases.”

So, it looks like 50 stocks from out of the S&P 500, relatively equally weighted. It appears to have only commenced to pay a dividend just 3 years ago. Starting at what was $1.17 a share then, it has slowly risen to a present $1.35 a share, for a dividend increase pay raise of 15% in those 3 years. Not bad, really. But not what I look for either. I try to knock down at least a 10% dividend income growth annually, which would have our income up almost 33% in the same time frame.

Current yield is 3.18%, which is greater than my current yield of 2.14%… but, then, at the rate my portfolio dividend income is growing annually, I can expect to possibly catch up and surpass SDOG in a few years time.

All the fund’s holdings can be viewed here: http://www.alpsfunds.com/holdings/SDOG

There are 2 other similarly managed ETF’s, but are international in nature. They are EDOG and IDOG. Check them out. By acquiring shares in all 3, you could commence to receive a considerable income, and be diversified across all kinds of sectors and countries within a little more than 150 stocks. I’m not recommending them, and will not likely buy any, but they may be of far more keen interest to some readers here. EDOG currently pays a 3.77% yield, and IDOG 5.17%. Between the 3 funds, one could conceivably start to generate a 4% income yield!

Merry Christmas to all my readers, may you be blessed with successful investing!

Harold F Crowell

 

 

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