Dividend ETF (SPYD) Hits a New 52-Week High
For investors seeking momentum, State Street SPDR Portfolio S&P 500 High Dividend ETF SPYD is probably on the radar. The fund just hit a 52-week high and is up 16.82% from its 52-week low price of $41.68/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:
SPYD in Focus
The underlying S&P 500 High Dividend Index is designed to measure the performance of the top 80 dividend-paying securities listed on the S&P 500 Index, based on dividend yield. The product charges 7 bps in annual fees and has a dividend yield of 4.11% (see: all the Large Cap Value here).
Why the Move?
Dividend ETFs are increasingly returning to investors’ radar as persistent macro uncertainty and elevated volatility make a stronger case for rotating into more stable and income-generating assets. Fresh U.S. strikes on multiple targets in Iran on Wednesday evening put pressure on the already fragile ceasefire situation and the markets. At the same time, weakness in the technology sector and an inflation uptick in May, driven by rising energy costs, reinforce the shift toward more defensive positioning.
Dividend-paying securities serve as primary sources of reliable income for investors, particularly during periods of equity market volatility. Companies offering dividends often act as a hedge against economic uncertainty.
More Gains Ahead?
Currently, SPYD has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook. It might continue its strong performance in the near term, with a positive weighted alpha of 14.84 (as per Barchart.com), which gives cues of a further rally.
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State Street SPDR Portfolio S&P 500 High Dividend ETF (SPYD): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).
Source Zacks-com
