Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Bond Yields Are Rising Dramatically: These 2 Dividend ETFs Have Them Beat

Published 30/09/2022, 20:54
Updated 30/09/2022, 21:41
© Reuters.  Bond Yields Are Rising Dramatically: These 2 Dividend ETFs Have Them Beat

© Reuters. Bond Yields Are Rising Dramatically: These 2 Dividend ETFs Have Them Beat

The two-year U.S. treasury yield reached 4.167% on Friday. The 10-year U.S. treasury yield hit 3.762%. This allows the yield curve to remain in an inverse relationship, which typically points to a recession.

According to True Insights, the spread between the dividend yields and the bond yields has widened the most in the past twelve years and is pointing higher, as Federal Reserve policy remains hawkish. See below:

As investors hunt for high yields to protect their portfolios to obtain passive income, more investors may turn to the bond markets, as the dividend yield for equities is not up to par. These dividend-yielding exchange-traded funds are focused on providing high yields, so an investor does not have to turn to the risk-free rate.

  • SPDR Series Trust SPDR Portfolio S&P 500 High Dividend ETF (ARCA: SPYD) offers a dividend yield of 5.67% or $2.03 per share annually, through quarterly payments, with an inconsistent track record of increasing its dividends. SPDR Portfolio S&P 500 High Dividend ETF tracks an index that tries to pick the top 80 dividend-yielding companies in the S&P 500. SPYD does a great job at diversifying its portfolio across most segments of the economy, as its top position is in Cardinal Health Inc. (NYSE: NYSE:CAH), representing 1.66% of the fund.
  • SPDR S&P Global Dividend ETF (ARCA: WDIV) offers a dividend yield of 5.93% or $3.18 per share annually, making quarterly payments, with an inconsistent track record of increasing its dividends. SPDR S&P Global Dividend ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return of the S&P Global Dividend Aristocrats Index. The Index includes the top 100 qualified stocks with the highest indicated dividend yields, with no more than 20 stocks selected from each country and 35 stocks from each global industrial classification standard sector.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.