SDY takes dividend sustainability screens to an extreme level, only holding firms that have increased dividends for the past 20 years. The highest yielding firms are then weighted by dividend yield. The resulting portfolio often has a lower portfolio yield than our high-yield benchmark and leans toward midcaps. Sector exposures vary widely in the high dividend space, SDY generally skimps on tech firms given that few can meet its 20-year screen. Like our benchmark, SDY includes REITs, contributing to the financial sector allocation. Within the high dividend space, SDY boosts a long track record.
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