Retirees Banking on Quarterly Income Choose HDV Over Growth Funds for Its Defensive Holdings

Core Insights - The iShares Core High Dividend ETF (HDV) offers a yield of 3.3%, significantly higher than the S&P 500's yield of 1.03%, making it an attractive option for retirees seeking predictable cash flow [2][3] - HDV's investment strategy focuses on dividend sustainability and financial health, concentrating on defensive sectors such as consumer staples, healthcare, and energy, which together represent two-thirds of the portfolio [5][6] Fund Performance - In 2024, HDV paid $4.12 per share in dividends, with an average annual dividend growth of 5-6% [3][6] - The fund's top holdings include Exxon Mobil (8.9%), Johnson & Johnson (7.1%), and AbbVie (6.2%), all of which are established dividend payers [6] - HDV experienced an 11% gain in 2025, recovering from a 13% drop in April, demonstrating its defensive positioning [7] Sector Allocation - The fund has a significant energy concentration of 21.9%, which creates exposure to commodity price fluctuations, potentially amplifying both risks and rewards [3][8] - Defensive sectors such as consumer staples (23.7%) and healthcare (22.1%) also play a crucial role in the fund's stability [5]