SDY - SDY: These Dividend Aristocrats Are Great But They May Have A Cash Flow Problem
- SDY consists of large-, mid-, and small-cap stocks that have consistently grown their dividends for over 20 years.
- The ETF has a great history managing crises, generally resulting in less drawdowns and faster recoveries compared to broad-market alternatives.
- Despite its solid history, most of SDY's constituents appear to have a weak cash to total debt ratio, which could make them especially vulnerable if interest rates rise.
- While I believe SDY to be a good core holding, I am neutral on it in the near-term, and plan to revisit again after next quarter's earnings season.
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SDY: These Dividend Aristocrats Are Great, But They May Have A Cash Flow Problem