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Some of the Best Dividend Stocks Reside in This ETF
Etftrends· 2025-12-16 13:18
Core Insights - The article emphasizes the importance of methodology for ETF issuers to achieve long-term success, highlighting the ALPS O'Shares U.S. Quality Dividend ETF (OUSA) as a prime example of effective fund positioning [1] Fund Overview - OUSA follows the O'Shares U.S. Quality Dividend Index, focusing on dividend growth, reduced volatility, and high-quality traits, which are essential for investors across various market conditions [2] - The ETF currently manages approximately $807 million in assets [2] Performance and Holdings - OUSA's methodology has resulted in it holding some of the best-performing dividend stocks over the past decade, including Microsoft (MSFT), which ranks as the second-best dividend stock during this period [3] - Texas Pacific Land Corp (TPL) was the best-performing dividend stock in the last 10 years, with a $10,000 investment growing to $210,000, while MSFT would have turned into $112,890 with dividend reinvestment [4] - OUSA has a significant allocation of nearly 24% to technology stocks, positioning it to benefit from the sector's growth and dividend potential [5] Notable Holdings - Other high-performing dividend stocks in OUSA include Caterpillar (CAT) and Cintas (CTAS), which rank third and fourth, respectively, among the best dividend stocks of the past decade [6] - Consumer staples like Costco Wholesale (COST) and Walmart (WMT) are also part of OUSA's holdings, recognized as top dividend payers over the last decade [7]