SDIV - SDIV: Subpar High-Yield Equity ETF Better Choices Out There

2024-05-17 13:48:24 ET

Summary

• SDIV is one of the highest-yielding equity ETFs in the market, with a 10.8% dividend yield.
• Although income is strong, the fund has suffered from declining distributions and share prices in the past.
• Some income ETFs offer comparable yields with stronger dividend growth and return track-records. A quick look at some of these follows.

I last covered the Global X SuperDividend ETF (SDIV) in early 2023. In that article , I argued that SDIV's consistent dividend cuts and underperformance made the fund a sell, notwithstanding its high yield. SDIV's dividends have declined by over 17% since, and the fund has significantly underperformed too, as expected.

In my opinion, SDIV remains a sell, as it continues to see declining dividends and underperformance. Investors looking for high-yield funds should consider alternatives. Three come to mind....

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