ETF of the Week ETF of the Week: ALPS Sector Dividend Dogs ETF (SDOG)
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Jul 3, 2025 Dive into the world of the ALPS Sector Dividend Dogs ETF, featuring 50 large-cap stocks ripe for yield potential. Discover its impressive 4% yield and learn how sector diversification can mitigate risks. Despite its two-star Morningstar rating, the ETF boasts strong value potential, ideal for resilient portfolios. Unpack the 'Dogs of the Dow' investment strategy that underpins this ETF, highlighting its equal stock weighting and balance for savvy investors, especially as you approach the holiday season.
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Undervalued High-Yield Dividend Focus
- The ALPS Sector Dividend Dogs ETF (SDOG) holds 50 large-cap U.S. stocks that underperformed last year but have the highest yield in their sector.
- It targets undervalued companies expected to revert to their mean performance, offering a strong yield around 4%.
Diversify Dividend Risk with Equal Weighting
- Diversify risk by holding 50 equally weighted stocks across 10 sectors with about 2% in each.
- This limits exposure to dividend cuts from any single company while maintaining a balanced income portfolio.
Assess Performance and Value Potential
- Evaluate SDOG's performance and holdings before investing, noting it offers a 2.5% return in 2023 with an above-average dividend yield.
- Consider it a value play that benefits from stocks potentially rebounding after recent selloffs.