SDY: S&P 500 Dividend Stocks Perking Up, Poised For More Gains (Rating Upgrade)

seekingalpha08-21

uschools Following a quick decline and even faster rebound in global stocks over the past six weeks, one chronic underperformer has re-asserted itself with relative strength. The high dividend yield ...

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The high dividend yield ...</p>\n\n<a href=\"https://seekingalpha.com/article/4716205-sdy-s-and-p-500-dividend-stocks-perking-up-poised-for-more-gains-rating-upgrade\">Source Link</a>\n\n</div>\n","source":"seekingalpha_fund","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>SDY: S&P 500 Dividend Stocks Perking Up, Poised For More Gains (Rating Upgrade)</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSDY: S&P 500 Dividend Stocks Perking Up, Poised For More Gains (Rating Upgrade)\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-08-21 23:08 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4716205-sdy-s-and-p-500-dividend-stocks-perking-up-poised-for-more-gains-rating-upgrade><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>uschools Following a quick decline and even faster rebound in global stocks over the past six weeks, one chronic underperformer has re-asserted itself with relative strength. The high dividend yield ...</p>\n\n<a href=\"https://seekingalpha.com/article/4716205-sdy-s-and-p-500-dividend-stocks-perking-up-poised-for-more-gains-rating-upgrade\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":".SPX","symbol_name":"S&P 500 Index","start_time":0,"source_url":"https://seekingalpha.com/article/4716205-sdy-s-and-p-500-dividend-stocks-perking-up-poised-for-more-gains-rating-upgrade","article_id":"2461787698","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/169992540/image_169992540.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2461787698","pubTimestamp":1724252905,"sourceInfo":{"source_id":"seekingalpha_fund","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"uschools Following a quick decline and even faster rebound in global stocks over the past six weeks, one chronic underperformer has re-asserted itself with relative strength. The high dividend yield f","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":["rate"],"viewcount":null,"language":"en","relate_stocks":{".SPX":"S&P 500 Index","SPY":"标普500ETF","VOO":"Vanguard标普500ETF","SDY":"股息指数ETF-SPDR S&P"},"translate_title":"SDY：标普500股息股回升，有望进一步上涨（评级上调）","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{".SPX":1,"SDY":1,"SPY":1,"VOO":1},"content_text":"uschools Following a quick decline and even faster rebound in global stocks over the past six weeks, one chronic underperformer has re-asserted itself with relative strength. The high dividend yield factor has performed well both on an absolute and relative basis. Firms raising their payouts have been in favor too. I am upgrading the SPDR S&P Dividend ETF (NYSEARCA:SDY) from a hold to a buy. While the valuation does not scream a deep discount, its momentum has improved markedly, while a technical breakout, along with emerging alpha against the S&P 500, should be seen as bullish developments as the third quarter has pressed on.  The key to watch will be how value stocks perform heading into year-end and what transpires in the interest rate markets. If we, in fact, see a few Fed rate cuts between now and December, then blue-chip stocks with a history of increasing their dividends could turn more favorable for yield-hungry investors. 1-Month ETF Performance Heat Map: Dividend and Value Funds Performing Well Finviz According to the issuer, SDY offers investors exposure to the highest-yielding stocks in the S&P Composite 1500 Index via tracking the S&P High-Yield Dividend Aristocrats Index. The fund follows a passively managed approach whereby it owns shares of firms that have a history of increasing dividends every year for at least 20 consecutive years. Stocks within the Index are weighted by indicated yield (annualized gross dividend payment per share divided by price per share) and weight-adjusted each quarter. SDY has underperformed the S&P 500 Total Return Index since I last reviewed the fund back in the springtime. Total assets under management is now $20.8 billion, just a modest increase from the start of the second quarter. SDY’s annual expense ratio is low to moderate at just 35 basis points as of August 21, 2024, while its forward dividend yield is more than a percentage point above that of the SPX at 2.45%.  Where SDY catches my attention from a bullish perspective right now is with its improved share-price momentum ETF Grade, now a strong B+, up from a C three months ago and at the start of 2024. Risk metrics, meanwhile, remain generally favorable with its somewhat defensive portfolio in US large caps. Finally, the liquidity grade is the best you’ll find among equity funds – the ETF’s 30-day median bid/ask spread is two basis points, according to SSGA Funds. Upon closer inspection of the portfolio, the 4-star, Silver-rated ETF by Morningstar is a factor fund focused on the large-cap value section of the style box. This area of the market can benefit from lower interest rates, but changes in the broader macroeconomy are also pivotal.  What’s more, there’s a significant exposure to domestic mid-caps, which are even more economically sensitive. The current price-to-earnings ratio is not a big bargain at close to 19 times, but that’s more than two turns cheaper than the S&P 500. SDY: Portfolio & Factor Profiles Morningstar At the sector level, Consumer Staples is the biggest slice of SDY at more than 18%. That’s a significant active wager on that defensive corner of the stock market, but there’s also cyclical exposure given an 18% weight in Industrials and a 10% stake in Financials.  Information Technology, more than 30% of the SPX, is just 6% of SDY. So, expect SDY to outperform. We see tech continue to trade under its all-time high so long as the broader market, such as the S&P 500 Equal Weight ETF (RSP), keeps making fresh all-time highs. SDY: Holdings & Dividend Information Seeking Alpha Staples Cracks to New Highs, Strongest YoY Gain Since April 2022   Kevin Gordon, Schwab Seasonally, we are in a precarious position heading into September – SDY's worst month on the calendar when assessing 10-year trends.  The good news is that October and November have been strong over the last decade, but being prudent with your entry on SDY is wise right now. SDY: Bearish Seasonal Trends Through Q3 Seeking Alpha The Technical Take While seasonality is a bearish risk, SDY’s technical chart is particularly impressive. Notice in the graph below that shares broke out from the key $130 to $135 resistance zone that I pointed out in my previous write-up. With the upside move, a bullishly measured move price objective to $156 is in play based on the $23 height of the multi-year range from the end of 2021 through just this past June. If we take that $23 and add it on top of the breakout point, then we arrive at about $156. Moreover, with a high amount of volume by price below the current share price, there should be ample cushion if we see a more protracted pullback. Additionally, take a look at the RSI momentum oscillator at the top of the chart – it has been ranging in a bullish zone between 35 and above 70 – never hitting technical overbought or oversold levels as the fund has rallied steadily. That’s seen in its rising long-term 200-day moving average and increasing 50dma. With SDY above both moving averages, it’s a solid indicator of a pronounced uptrend. I find it interesting that volume has tailed off on SDY. Perhaps investors are more drawn to so-called “boomer candy” ETFs that sell call options or use other derivatives to enhance yield. But SDY’s long and reliable history should be viewed favorably by income investors. SDY: Bullish Upside Breakout Targets $156, Rising Moving Averages, Strong RSI Trends Stockcharts.com The Bottom Line  I have a buy rating on SDY. I see the diversified fund as having an OK valuation, while absolute and relative strength have turned higher.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.28.1","shortVersion":"4.28.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2461787698"}