DVY - DVY: Buy For The High Yield Stay For The Safety

November, 12 2021 08:00 AM iShares Select Dividend ETF

Now is the time to buy the iShares Select Dividend ETF, as its high allocation to Utilities stocks is perfect for income-seeking investors looking to manage risk.
I will demonstrate how the ETF has been able to generate a yield of about 1% more than a portfolio of sector ETFs without sacrificing total return.
The ETF's estimated yield at current prices is 3.50%, which is higher than its 3.18% trailing yield. Constituents have also grown dividends at a five-year rate of 8.53%.
The Consumer Price Index rose 6.24% in October, its highest year-over-year change since December 1990. The ETF's top sectors, compared against the S&P 500, are very inflation-friendly.
You'll find that it's the sector exposures that matter most. While they aren't optimal in the long run, investors can use the fund sparingly as opportunities arise, such as the one today.

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