With the economic outlook still looking uncertain, this might be a good time for investors to consider buying high-quality dividends ETFs like the ALPS Sector Dividend Dogs ETF (NYSEARCA:SDOG) which can potentially deliver stable returns. The ALPS Sector Dividend Dogs ETF uses the “Dogs of the Dow” approach and gives investors exposure to some of the highest-yielding S&P 500 (SPY) dividend stocks. I think there are several reasons why this above-average yielding ETF might be a good option for investors to consider.
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The economic climate continues to remain uncertain as a new wave of coronavirus infections and deaths has hit the US as well as several other nations. The US and other countries around the world have started to enact another round of travel restrictions and lockdowns, albeit not as severe as before, this has still increased fears that such measures might derail the economic recovery. Meanwhile, the UK has reported a new variant of the coronavirus which could be potentially more contagious. However, vaccine breakthroughs and the subsequent rollouts have provided a glimmer of hope. Although it remains unclear when enough people will get vaccinated for the herd immunity to kick in, this will likely happen sooner rather than later. To deal with the uncertain environment, it makes sense to consider buying high-quality dividend stocks that promise stable payouts and growth potential.
There are several ways investors can pick and buy dividend stocks. One of the most popular investment strategies is called the ‘Dogs of the Dow’ approach in which a person would invest in 10 of the highest-yielding Dow Jones Industrial Average stocks and rebalance the portfolio at the start of each year. That’s fairly straightforward. Since Dow Jones consists of just 30 of some of the most well-established companies, an investor will be putting his money
