Ticker (Exchange) – SDY (NYSE)
ISIN - US78464A7634
Current price – $140.2
Target price – $156
Growth potential – 11.3%🔥
Dividend yield – 2.4%💵
Investment horizon – 1 year
The SPDR® S&P Dividend ETF is an exchange-traded fund (ETF) from State Street Global Advisors that tracks the S&P High Yield Dividend Aristocrats Index. This ETF invests in mid-cap companies that have consistently increased their dividend payments for at least 20 years. The assets under management amount to $21.3 billion, with an expense ratio of 0.35%. As the key interest rate declines, the attractiveness of dividend-paying stocks increases, as they offer the opportunity to secure higher yields. The fair value of SPDR® S&P Dividend ETF shares is $156, with a growth potential of 11.3%. The dividend yield stands at 2.4%.
Investment thesis
🔼 Stable Business. Companies that regularly pay dividends tend to have highly resilient business models. The stocks of such companies usually show long-term growth while maintaining lower volatility. The SPDR® S&P Dividend ETF allows investors to gain exposure to a diversified portfolio of dividend-paying stocks, which further reduces investor risk through diversification.
🔼 Securing Yield. In September, the U.S. Federal Reserve cut the key interest rate by 0.5 percentage points (0.5%) for the first time in 4.5 years, thus starting a cycle of monetary easing. According to the policymaker's forecasts, by the end of 2025, the rate will be in the range of 3.25-3.5%, which is 1.5 percentage points lower than current levels. As the rate decreases, bond yields also decline, increasing demand for dividend-paying stocks since they allow investors to lock in the current elevated yield level. Therefore, during the monetary easing cycle, dividend stocks are expected to show leading growth.
🔼 Dividends. The SPDR® S&P Dividend ETF pays dividends. The current yield is 2.4%, which is quite a respectable level.
To open a brokerage account with Unibank Invest, please fill out the application form or contact us at +374 43 004 382.
Disclaimer
The information provided above is not an investment recommendation and does not guarantee or promise profitability. Before investing, you should assess the potential risks and rewards and determine your willingness and ability to accept such risks.
Unibank OJSC is regulated by the Central Bank of Armenia.
ISIN - US78464A7634
Current price – $140.2
Target price – $156
Growth potential – 11.3%🔥
Dividend yield – 2.4%💵
Investment horizon – 1 year
The SPDR® S&P Dividend ETF is an exchange-traded fund (ETF) from State Street Global Advisors that tracks the S&P High Yield Dividend Aristocrats Index. This ETF invests in mid-cap companies that have consistently increased their dividend payments for at least 20 years. The assets under management amount to $21.3 billion, with an expense ratio of 0.35%. As the key interest rate declines, the attractiveness of dividend-paying stocks increases, as they offer the opportunity to secure higher yields. The fair value of SPDR® S&P Dividend ETF shares is $156, with a growth potential of 11.3%. The dividend yield stands at 2.4%.
Investment thesis
🔼 Stable Business. Companies that regularly pay dividends tend to have highly resilient business models. The stocks of such companies usually show long-term growth while maintaining lower volatility. The SPDR® S&P Dividend ETF allows investors to gain exposure to a diversified portfolio of dividend-paying stocks, which further reduces investor risk through diversification.
🔼 Securing Yield. In September, the U.S. Federal Reserve cut the key interest rate by 0.5 percentage points (0.5%) for the first time in 4.5 years, thus starting a cycle of monetary easing. According to the policymaker's forecasts, by the end of 2025, the rate will be in the range of 3.25-3.5%, which is 1.5 percentage points lower than current levels. As the rate decreases, bond yields also decline, increasing demand for dividend-paying stocks since they allow investors to lock in the current elevated yield level. Therefore, during the monetary easing cycle, dividend stocks are expected to show leading growth.
🔼 Dividends. The SPDR® S&P Dividend ETF pays dividends. The current yield is 2.4%, which is quite a respectable level.
To open a brokerage account with Unibank Invest, please fill out the application form or contact us at +374 43 004 382.
Disclaimer
The information provided above is not an investment recommendation and does not guarantee or promise profitability. Before investing, you should assess the potential risks and rewards and determine your willingness and ability to accept such risks.
Unibank OJSC is regulated by the Central Bank of Armenia.
