Dividends4Life: Market Beating Dividend Fund

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Market Beating Dividend Fund

Posted by D4L | Monday, June 03, 2013 | | 0 comments »

The PowerShares S&P 500 High Dividend Portfolio (SPHD) was launched in October 2012 as an exchange traded fund that seeks investment results that correspond to the S&P 500 Low Volatility High Dividend Index. Characteristics of this underlying index have led to long-run outperformance versus the S&P 500 (SPY). With lower volatility and nearly double the annual dividend yield of the broad market index, this fund could be an excellent vehicle for the income investing community on Seeking Alpha.

With the indicated dividend yield on SPHD of 3.12%, nearly double the dividend yield of the S&P 500 of 1.66%, income investors can purchase this ETF, and expect to continue to have lower volatility than the broader market. While these dividend stocks have outperformed in 2013, this relative performance is likely not a temporal phenomenon given the long-run average outperformance of these companies versus the market at large.

Source: Seeking Alpha

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