S&P 500 High Dividend Index - ETF Tracker (2024)

FAQs

S&P 500 High Dividend Index - ETF Tracker? ›

This index is designed to track the performance of the 80 highest yield dividend equities in the S&P 500. All the securities in the index are large capitalization U.S. equities since all of them are in the S&P 500.

Just as the name suggests, this fund delivers respectable dividend payments right out of the gate to newcomers. The aforementioned yield of 4.6% is about as much yield as you're going to find from any investment in stocks, which of course also offers you a chance of capital appreciation.

The S&P 500 High Dividend Index serves as a benchmark for income seeking equity investors. The index is designed to measure the performance of 80 high yield companies within the S&P 500 and is equally weighted to best represent the performance of this group, regardless of constituent size.

Like other types of funds, FTSE trackers are either accumulation or income-based. The companies a fund invests in sometimes pay dividends. An accumulation fund will then reinvest the dividends to grow the price of the fund. An income fund pays out the dividends proportionally to the investors in the fund.

Cons. No guarantee of future dividends. Stock price declines may offset yield. Dividends are taxed in the year they are distributed to shareholders.

VOO dividend yield as of May 2024

At the last update on April 26, the Vanguard S&P 500 ETF had a dividend yield of 1.37%.

S&P 500 investments

The SPDR S&P 500 ETF, which trades under the ticker SPY, is the oldest and biggest ETF to track the S&P 500, with about $425 billion in assets under management. It's administered by State Street Global Advisors. It pays a dividend quarterly and had a yield of about 1.3% as of November 2021.

Still, for long-term investors, buying sustainable dividend stocks with solid growth potential is a timeless strategy. Two dividend stocks worth buying right now are telecom giant AT&T (NYSE: T) and tech heavyweight International Business Machines (NYSE: IBM).

Are monthly dividend ETFs worth it? ›

Benefits Of Monthly Dividend ETFs

Monthly dividends have their advantages. For one, they're better than quarterly dividends for covering living expenses. You only have to budget the income 30 days at a time, rather than 90. Monthly payouts are also convenient for reinvesting.

At least once a year, funds must pass on any net gains they've realized. As a fund shareholder, you could be on the hook for taxes on gains even if you haven't sold any of your shares.

Dividends and interest payments from ETFs are taxed similarly to income from the underlying stocks or bonds inside them. For U.S. taxpayers, this income needs to be reported on form 1099-DIV. 2 If you earn a profit by selling an ETF, they are taxed like the underlying stocks or bonds as well.

VOO Dividend Information

VOO has a dividend yield of 1.33% and paid $6.41 per share in the past year. The dividend is paid every three months and the last ex-dividend date was Mar 22, 2024.

SPDR S&P 500 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, SPY is a sufficient option for those seeking exposure to the Style Box - Large Cap Blend area of the market.

Historical dividend payout and yield for SPDR S&P 500 ETF (SPY) since 1995. The current TTM dividend payout for SPDR S&P 500 ETF (SPY) as of May 28, 2024 is $6.72. The current dividend yield for SPDR S&P 500 ETF as of May 28, 2024 is 1.27%.

Video Player is loading. In the last 30 Years, the SPDR S&P 500 (SPY) ETF obtained a 10.35% compound annual return, with a 15.12% standard deviation.

Risks of Investing in SPDR ETFs

Tracking error: While ETFs are designed to track the performance of their underlying index, there can be tracking errors due to factors such as fees, expenses and trading costs. Sector concentration risk: If you invest in a sector-specific SPDR ETF, you are subject to concentration risk.