SPY - SDOG: 4% Dividend Yield Isn't Enough For What These Dividend Dogs Sacrifice
2024-05-28 21:35:09 ET
Summary
- SDOG's strategy is to select the five highest-yielding S&P 500 Index stocks from each of the 10 GICS sectors (excluding Real Estate) and weight them equally.
- It currently features an attractive 4.00% yield and has one of the lowest forward P/E's in the large-cap value category. However, that's where the good news ends.
- My analysis reveals SDOG scores near the bottom on other key factors like growth, momentum, quality, and sentiment. This unbalanced approach leads to inconsistent returns.
- SCHD features a similar dividend yield, more quality, and more dividend growth, suggesting it's a better long-term fund for income investors. As a result, I recommend readers avoid SDOG.