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3 Dividend-Stock ETFs That Are Flying Under the Radar
Youtubeยท 2025-09-18 15:30
Core Insights - The search for high dividend yield ETFs involves a trade-off between high yields and quality, as higher yields may result from declining stock prices rather than increasing dividends [1] Group 1: High Yielding Stock ETFs - Fidelity High Dividend ETF (FDV) balances income and quality by scoring dividend payers on yield payout ratio and dividend growth, focusing on sustainable payouts and healthy growth [2][3] - FDV's portfolio is constructed to avoid unstable companies, selecting the best growing stocks within each sector and weighting them by market capitalization [3][4] - As of June 2025, FDV's trailing 12-month yield was 3.2%, significantly higher than the 1.9% yield of the Russell 1000 value index [5] Group 2: Russell 1000 Yield Focus ETF - The Russell 1000 yield focus ETF combines dividend mandates with equity risk factors, aiming to outperform peers while maintaining high yields [5][6] - This ETF emphasizes high yield, small size, low valuations, and strong quality, with dividend yield receiving double the weight of other factors [6] - The ETF's trailing 12-month yield consistently exceeds that of the broader US stock market and the Russell 1000 value index, positioning it within the midcap value category [7] Group 3: Wisdom Tree Large Cap Dividend ETF - Wisdom Tree Large Cap Dividend ETF (DLN) adopts a measured approach to yield, filtering the largest 300 dividend payers and weighting them by expected cash dividends [8][9] - The ETF controls quality through a composite quality and momentum score, removing struggling companies and favoring stocks with stronger profitability [9] - Since its inception in 2006 through June 2025, DLN has outperformed its index on both absolute and risk-adjusted bases [10]