SPDR Dividend ETF (SDY)

All Comments on SDY

  • commenter
    Oldguy67
    Aug 24 01:53 PM
    The Top Dividend Paying ETFs and Stocks [view article]
    for Frank Li, Dividend stocks are a great way to make a
    living especially for those of us who are retired. I have been
    investing in dividend stocks for 52 years and have no regrets.
    I retired at 44 (23 years ago) and make a 6 figure income, which
    is really what you want and need when you retire.     Reply
  • commenter
    mangum
    Aug 13 01:12 PM
    Do Dividend Stocks Underperform the Market? [view article]
    Of course Schwab is going to diss dividend stocks. People tend to buy and hold them, which means "lost" commission revenue for Schwab. Completely self-serving on Schwab's part.

    And isn't it interesting that one can "lose" something one never had?     Reply
  • commenter
    mangum
    Aug 13 01:10 PM
    Do Dividend Stocks Underperform the Market? [view article]
    It makes perfect sense that Schwab would diss dividend paying stocks. Investors tend to trade in and out of these infrequently, which lowers a brokerage's commission revenue. Reply
  • commenter
    User 142351
    Aug 11 10:35 AM
    Broad US Dividend ETFs [view article]



    dearsir,
    thanks for i got good infomation for divident etf in one page,














    Reply
  • commenter
    Capitalist
    Cow
    Aug 05 12:27 AM
    My Website
    Do Dividend Stocks Underperform the Market? [view article]
    It seems like the key is to buying dividend paying stocks because they "keep you in the game". But at the same time don't buy dividend paying stocks which have a large yield becasue of a fundamentally depressed stock (GM, C, BCS,) Reply
  • commenter
    truthinvesti
    ng
    Aug 04 06:13 PM
    My Website
    Do Dividend Stocks Underperform the Market? [view article]
    My portfolio which is documented on my free website shows that dividend paying stocks have OUTPERFORMED PROVIDED you buy the right ones at the RIGHT PRICES. UST KFT MO KO RAI PFE BUD have all been bought in my"bargain bins" and done well. What you are looking for is GROWTH and SAFETY as well as dividend Reply
  • commenter
    bbzz24
    Aug 04 05:01 PM
    Do Dividend Stocks Underperform the Market? [view article]
    my 'research' shows that stocks suck. it was concluded over the 1928-33 period. Reply
  • commenter
    Gob
    Aug 04 04:09 PM
    My Website
    Do Dividend Stocks Underperform the Market? [view article]
    "the rules of the game have changed so much"

    Yes. Just like they'd changed during the tech bubble.

    Or so some thought.     Reply
  • commenter
    Muddling
    Investor
    Aug 04 02:28 PM
    My Website
    Do Dividend Stocks Underperform the Market? [view article]
    18 years period or 35 years period? Who cares! In the log term we are all dead. If you buy Dogs of the Dow today, you buy GM and Ford. That's way too risky. Every stock should be researched on its own merits, dividend is just one of the variables. And if you don't have time to research individual stocks, invest in mutual funds or ETFs. Even then research is needed. Of course, there are also index funds, but if you invested in such in 2000, you did worse than with CD (which, by the way, is FDIC insured and your principal is definitely safe). Reply
  • commenter
    bluskye
    Aug 04 01:33 PM
    Do Dividend Stocks Underperform the Market? [view article]
    Does anyone have direct experience with Jack J. O'Malley, author of "The New Dogs of the Dow"? The Dogs of the Dow has been underperforming for the last decade, and the focus of it is buying the 10 highest dividend yielding stocks in the dow. Selling some of the gains from the best performing Dow stocks to add to the ones like GM would sure be an example of selling some high and buying some low. IF GM survives. Any thoughts? Reply
  • commenter
    huangjin
    Aug 04 12:28 PM
    Do Dividend Stocks Underperform the Market? [view article]
    An accurate comparison would be between low yield and high yield stocks of the same sector and with similar market cap. Reply
  • commenter
    mzcap
    Aug 04 10:40 AM
    My Website
    Do Dividend Stocks Underperform the Market? [view article]
    There is a reason why Charles Schwab is a discount broker. Reply
  • commenter
    barnburner
    Aug 04 10:21 AM
    Do Dividend Stocks Underperform the Market? [view article]
    I suppose one could "cherry pick" a time period that proved what ever one wanted to prove. The relevance of the article has more to do with ones age, are you retired now?, are you retiring in 10 years, 30 years?-makes a big difference. Reply
  • commenter
    Whidbey
    Aug 01 03:25 PM
    Seven High-Yielding ETFs [view article]
    It does not matter who is president since the task is beyond a human being. I like the dividends because they are nontaxable if held, or acquired in a Roth IRA. Be creative, the government does not want to support SS, so they will allow more freedom to the self-help crowd. I am not totally despondent but nearly so. Reply
  • commenter
    falcon2382
    Aug 01 07:24 AM
    The Problem With Designer ETFs [view article]
    Timothy, I also have some objections to much of what you said, but I don't read these articles to waste my time arguing or proving that I am right, I do so in order to challenge what I take for granted and to share my thoughts with others willing to respond to comments so that we can become better investors, and as you have illustrated more than your fair share of tolerance, I want to thank you for your time and energy. But I also want to hear what you have to say about the following response to your article:

    What interests me most about your thesis is how you seem to advocate for a more "human" managed selection of stocks than for a selection of stocks chosen by a computer algorithm while admitting that market cap itself is an emotionally charged way of valuing a company (all with which I totally agree). Yet, you seem to ignore the time-oriented part of the investing process that is, by its very nature, about human decision to allocate and or reallocate funds according to perceived changes in the market. I don’t think the ETF’s take away from this human element. The formulaic, non-human, objectivity of the ETF is precisely why it is a good investment tool—it is a “control” in a world that is more than uncertain at times. In the case of SDY, which I recently purchased at $43/share, the unchanging formula is what attracts me to it. I know what I can count on. The ETF is more heavily weighted in financials than any other sector and this is why it has greatly underperformed the greater market. However, if you share my prognostication for the market moving forward, I believe many other sectors will soon be catching up with financials. This judgment is the “human” part of my investing strategy, and since I am only 25, I have a time horizon that provides ample opportunity for this imbalance to work itself out—meanwhile the dividends will compound the total number of shares I own. Further, because of the “rigid” formula of the ETF, if a company can't afford to keep its dividend or has to cut it after 25 years of increases, then it gets booted automatically. This is good because something fundamental in the company’s health has changed and unlike humans, the computer algorithm can’t find ways to justify holding on to a loser that has “broken the rule.” At the same time, the computer program also doesn’t get scared and sell a good company at a loss simply because it was taken down with its sector. But the best part is that I didn’t have to pay a transaction fee to get rid of the loser, or to buy its replacement. Yet, if there are any capital gains I am able to receive them (again without a transaction cost). And on that note, how can you not consider the dividends and management fee structure in your analysis? It’s crucial! The AVERAGE mutual fund (which is generally not actively managed either) is over 1.2%. SDY only has a management fee of 0.35%.

    Another point I’d like to address is your very comparison of SDY with the S&P 500 strictly from a capital depreciation standpoint. It was only recently that I chose to invest in SDY, and it was BECAUSE it was down so much in relation to the greater market. Or rather, it was because I realized that the ETF is more heavily weighted in financials than other broader market ETF's, but without the concentration of a strictly financial ETF, and without all the “bad eggs” (i.e. indymac, Washington Mutual, etc...). So after deciding that the financial companies that are included in SDY were among the healthiest in the industry, I welcomed the extra exposure, expecting that at some point the banks that weather this crisis will be handsomely rewarded, not only because they once again proved themselves (all of the Banks held by SDY made it through the S&L crisis and the fall of LTMC), but because they will gain market share simply by not going bankrupt. Moreover, if you want to make a comparison you should be aware of what the comparison is really telling you. What good is it to blindly compare the S&P 500 to any ETF if you don’t consider the underlying stocks? If, for example you had compared SDY to XLF you would have seen just why SDY is a compelling investment right now. At the time of this writing, the SDY boasts a dividend yield of 4.87% while XLF (a strictly financial ETF) is 4.55% (the S&P is only 1.67%). Thus, one might conclude that with SDY you get diversification with a huge dividend, exposure to the financials once they do bounce back, and peace of mind knowing that the fifty companies you own in this ETF have not only been around for over 25 years, not only paid a dividend for over 25 years, but have INCREASED that dividend during that time period. Again, I think it is relevant to remember the other crises we have been through during the past 25 years.

    I don't think it is fair to talk about ETF's as if they all have the same purpose, function, and risk/reward. If that were the case then we wouldn't need different ETF's; SPY or DIA would serve everyone's needs. I have a long time horizon and I welcome the extra dividend that SDY provides over SPY as we work our way through the current mess. In fact, this is a very very important reason (there’s the “human” part again) to consider SDY since most bear markets turnover slowly and through a basing process. When we reach that point—and I think we are there or at least very close—I expect the compounded dividends to pay me better than both treasuries and the greater equity market as I wait for the economy to find support. The S&P contains a boatload of discretionary retailers and companies that earn their money from consumer services and products, leisure activities and is it that hard to see that the energy companies which have become quite bloated recently might also drag on the S&P. The future losses of these sectors over the next year or two (or three) won’t affect SDY nearly as much as the greater market at which point SDY, I believe, will seem like a golden egg. Any thoughts?

    -Mike
     Reply
Loading...
Symbols:
Authors:
Quick Links: