ETF Spotlight: iShares Dow Jones Select Dividend

Jul.30.10 | About: iShares Select (DVY)

ETF Spotlight on iShares Dow Jones Select Dividend (NYSEARCA:DVY), part of a weekly series.

Assets: $4.2 billion

Objective: Tracks the Dow Jones U.S. Select Dividend Index

Holdings: Among the top holdings include Chevron (NYSE:CVX), McDonald’s (NYSE:MCD), Clorox (NYSE:CLX), Caterpillar (NYSE:CAT) and General Mills (NYSE:GIS)

What You Should Know

  • DVY currently yields 3.67%
  • The expense ratio is 0.4%
  • The sector breakdown is utilities (26.8%), consumer goods (18.4%), industrials (16.3%) and financials (14.8%)
  • DVY is the largest dividend ETF in the industry

The Latest News

  • Dividends give investors a good feeling about companies, which brings more investors, which pushes up the stock price – win-win
  • Thanks to hefty bond sales, corporations are sitting on record amounts of cash and hoarding during the recession
  • Russell 3000 companies have $2.9 trillion in cash – 19% more than a year ago
  • 15% of companies in the Russell 3000 raised dividends in Q2, double from a year ago
  • Bloomberg forecasts that 14% of companies will boost dividends within the next three months, up from 9.7% a year ago
  • The tech sector is doing this too – not known for huge yields

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Dividend ETFs

Disclosure: None