PRESCOTT, Ariz. (TheStreet) -- According to the StateStreet Global Advisors Web site the S&P 500 SPDR (SPY) has a trailing yield of 1.98%. Reports on CNBC have it up near 2.25%. Either figure is greater than the yield on the 10-year U.S. Treasury, which yields 1.77%. It is rare when stocks yield more than the 10-year Treasury and no doubt increases the spotlight on dividend paying stocks.
Dividend-based ETFs first came on the scene in 2003 with the iShares DJ Dividend Select ETF (DVY) and the SPDR S&P Dividend ETF (SDY) and started to proliferate when fund provider WisdomTree created an entire product line devoted to dividend investing. Back then, I wrote articles on just about all of the dividend ETFs as they came out and offered this same caution on just about all of them: if anything serious were to happen to the financial sector then the dividend funds would get hit very hard as most of them are very heavily weighted in that sector.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV