Average Daily Volume
313.1K
Fund Overview
The SPDR S&P Dividend ETF (SDY) is an exchange-traded fund that seeks to track the performance of the S&P High Yield Dividend Aristocrats Index. This index is composed of companies within the S&P Composite 1500 Index that have consistently increased their dividends for at least 20 consecutive years. SDY provides investors with exposure to high-quality, dividend-paying U.S. equities, making it a popular choice for income-focused investors. The fund is designed to offer a balance of income and growth potential by investing in companies with a strong history of dividend payments and financial stability. SDY is managed by State Street Global Advisors (SSGA) and has a diversified portfolio across various sectors, including financials, consumer staples, and industrials.
- Asset Class
-
Equity
- Industry
-
N/A
- Annual Dividend Rate
-
- Smart Beta
-
Yes
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 2.56 %
- Currency Hedged
-
No
- Portfolio Turnover
-
55 %
- Dividend Date
-
Why Invest in the SDY ETF?
Potential Benefits
- Provides exposure to high-quality U.S. companies with a long history of dividend growth, offering potential for steady income.
- Diversified across sectors, reducing concentration risk compared to single-stock investments.
- Lower expense ratio compared to many actively managed dividend-focused funds.
- Historically, dividend aristocrats have demonstrated resilience during market downturns.
- Liquidity is high due to its status as a widely traded ETF.
Potential Risks
- Dividend-paying stocks may underperform growth stocks during strong bull markets.
- Concentration in certain sectors (e.g., financials) could expose the fund to sector-specific risks.
- Interest rate hikes may negatively impact high-dividend stocks as bonds become more attractive.
- Dividend cuts or suspensions by constituent companies could affect fund performance.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+6.9%
|
+4.8%
|
-5.8%
|
+2.8%
|
-0.5%
|
+2.6%
|
+1.9%
|
+0.8%
|
-5.7%
|
+0.7%
|
-
|
-
|
| 2025 |
+1.8%
|
+2.8%
|
-1.3%
|
-3.4%
|
+2.8%
|
+1.5%
|
+0.9%
|
+3.2%
|
-0.3%
|
-2.0%
|
+2.6%
|
-0.4%
|
| 2024 |
-1.2%
|
+1.7%
|
+5.0%
|
-3.0%
|
+2.3%
|
-1.6%
|
+6.0%
|
+3.8%
|
+2.1%
|
-2.7%
|
+4.2%
|
-7.6%
|
| 2023 |
+3.5%
|
-2.8%
|
-1.1%
|
+1.0%
|
-6.1%
|
+5.2%
|
+3.5%
|
-3.6%
|
-5.3%
|
-2.7%
|
+6.9%
|
+5.3%
|
| 2022 |
-2.2%
|
-1.1%
|
+3.1%
|
-3.2%
|
+2.4%
|
-5.9%
|
+6.6%
|
-2.3%
|
-9.3%
|
+10.3%
|
+6.8%
|
-4.0%
|
| 2021 |
-0.6%
|
+5.3%
|
+7.3%
|
+4.0%
|
+2.2%
|
-1.9%
|
+0.7%
|
+1.3%
|
-5.1%
|
+4.8%
|
-2.0%
|
+7.8%
|
| 2020 |
-2.9%
|
-8.9%
|
-15.3%
|
+10.1%
|
+3.3%
|
+1.2%
|
+2.6%
|
+3.0%
|
-3.4%
|
+0.1%
|
+12.3%
|
+3.0%
|
| 2019 |
+6.3%
|
+4.2%
|
+0.8%
|
+2.1%
|
-5.6%
|
+5.9%
|
+0.9%
|
-2.4%
|
+3.9%
|
+1.6%
|
+1.9%
|
+2.0%
|
| 2018 |
+1.9%
|
-4.9%
|
+0.1%
|
-0.4%
|
+1.3%
|
+1.4%
|
+3.9%
|
+2.0%
|
+0.2%
|
-4.8%
|
+4.9%
|
-7.8%
|
| 2017 |
+0.7%
|
+3.0%
|
-0.2%
|
+0.6%
|
+0.1%
|
+0.7%
|
+1.1%
|
-0.9%
|
+3.1%
|
+1.3%
|
+4.2%
|
+1.2%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
|
VZ
|
VERIZON COMMUNICATIONS INC |
3.2 % |
|
O
|
REALTY INCOME CORP |
2.5 % |
|
ED
|
CONSOLIDATED EDISON INC |
1.9 % |
|
CVX
|
CHEVRON CORP |
1.8 % |
|
WEC
|
WEC ENERGY GROUP INC |
1.7 % |
|
KVUE
|
KENVUE INC |
1.7 % |
|
EIX
|
EDISON INTERNATIONAL |
1.7 % |
|
KMB
|
KIMBERLY-CLARK CORP |
1.7 % |
|
ABBV
|
ABBVIE INC |
1.7 % |
|
SO
|
SOUTHERN CO |
1.6 % |
Top 10 holdings shown, out of 151 total holdings.
Related ETFs: SDY vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
SDY tracks the S&P High Yield Dividend Aristocrats Index, which selects companies from the S&P Composite 1500 Index that have increased dividends for at least 20 consecutive years. The index is weighted by yield, meaning higher-yielding stocks have a larger impact on performance. The fund holds common stocks of these dividend aristocrats and is rebalanced annually to ensure it meets its index criteria. This strategy aims to provide investors with a combination of income and potential capital appreciation while maintaining a focus on financially stable companies.
Frequently Asked Questions
What is the dividend yield of SDY?
SDY's dividend yield varies but typically ranges between 2.5% and 3.5%, depending on market conditions and the performance of its underlying holdings.
How often does SDY pay dividends?
SDY pays dividends quarterly, aligning with the distribution schedules of its constituent stocks.
Is SDY a good investment for retirement?
SDY can be a suitable component of a retirement portfolio due to its focus on stable, income-generating stocks, but investors should diversify across asset classes.
Does SDY have international exposure?
No, SDY focuses exclusively on U.S.-listed companies that meet its dividend growth criteria.
How does SDY handle dividend cuts by its holdings?
If a company cuts its dividend, it will be removed from the index during the next rebalance, ensuring the fund maintains its focus on consistent dividend growers.
Industry Overview
The SDY ETF focuses on the dividend aristocrats segment of the market, which consists of companies with a proven track record of increasing dividends for at least 20 consecutive years. Investing in dividend aristocrats is a popular strategy for income-seeking investors, as these companies are often financially stable and less volatile than non-dividend payers. The SDY ETF provides exposure to this niche while maintaining diversification across sectors. Dividend investing is particularly attractive in low-interest-rate environments, where traditional fixed-income investments may offer lower yields. However, investors should be aware of sector concentration risks, as financials and consumer staples often dominate such portfolios.
Alternative Comparison
Compared to peers like VYM and SCHD, SDY has a stricter focus on dividend growth history, requiring 20+ years of consecutive increases. This makes it more specialized than broader dividend ETFs like VYM, which includes a wider range of high-yield stocks. SCHD, on the other hand, uses a quality and yield screening process but does not require the same lengthy dividend growth track record. SDY's expense ratio is competitive but slightly higher than some peers like VYM or SCHD. Investors prioritizing long-term dividend consistency may prefer SDY, while those seeking broader exposure might consider VYM or SCHD.
Issuer Overview
State Street Global Advisors (SSGA) is one of the largest ETF providers globally, known for its SPDR ETF family. SSGA has a strong reputation for index-tracking ETFs and offers a wide range of investment solutions. The firm emphasizes transparency, low costs, and liquidity in its products, making it a trusted choice for both institutional and retail investors.
Conclusion
SDY is a well-established ETF for investors seeking exposure to high-quality dividend aristocrats. Its focus on companies with long-term dividend growth provides a balance of income and stability. While it may underperform during growth-driven bull markets, it remains a solid choice for income-focused portfolios. Investors should consider their risk tolerance and income needs when evaluating SDY against other dividend ETFs.
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