Is the State Street SPDR Portfolio S&P 500 High Dividend ETF (SPYD) a Solid Investment Option Currently?
Overview of SPYD: The State Street SPDR Portfolio S&P 500 High Dividend ETF (SPYD), launched in 2015, offers broad exposure to the Large Cap Value category and aims to match the performance of the S&P 500 High Dividend Index, focusing on high dividend-paying stocks.
Investment Strategy: SPYD utilizes a smart beta approach, selecting stocks based on fundamental characteristics rather than market capitalization, and has a low expense ratio of 0.07%, making it a cost-effective option for investors.
Performance and Holdings: As of December 2025, SPYD has a 12-month trailing dividend yield of 4.43% and a year-to-date return of approximately 5.18%, with significant allocations in the Real Estate, Financials, and Consumer Staples sectors.
Comparison with Other ETFs: Investors may also consider other ETFs like Schwab U.S. Dividend Equity ETF (SCHD) and Vanguard Value ETF (VTV), which have larger asset bases and lower expense ratios, while traditional market cap weighted ETFs may offer lower-risk options.
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- Performance of Dog of the Dow: The ten highest-yielding stocks in the Dow Jones Industrial Average have seen an average increase of 17.8% in 2025 through December 26.
- Comparison with Dow 30: This performance surpasses the overall gain of 14.5% for the Dow 30 during the same period.
- Appeal for Dividend Investors: The strong performance of these stocks highlights the attractiveness of dividend investing this year.
- Market Trends: The trend indicates a favorable environment for dividend-focused investment strategies within the Dow.
- Performance of Dog of the Dow: The ten highest-yielding stocks in the Dow Jones Industrial Average have seen an average increase of 17.8% in 2025 as of December 26.
- Comparison with Dow 30: This performance surpasses the overall gain of 14.5% for the Dow 30 index during the same period.
- Focus on Dividend Investors: The year has been particularly favorable for dividend investors who focus on these high-yielding stocks.
- Market Trends: The trend indicates a strong preference for dividend-paying stocks among investors in the current market environment.
S&P 500 Buybacks Overview: In Q3 2025, S&P 500 share repurchases reached $249.0 billion, marking a 6.2% increase from Q2 2025 and a 9.9% rise from Q3 2024, with total buybacks surpassing $1 trillion for the second time in history.
Company Participation and Trends: A total of 333 companies reported buybacks of at least $5 million, a slight decrease from the previous quarter, while the top four companies (Apple, NVIDIA, Alphabet, and Meta) accounted for over 22% of the total buybacks.
Sector Spending Changes: Health Care and Financials saw significant increases in buyback spending, up 32.2% and 26.3% respectively, while Materials and Real Estate reduced their expenditures by 21.0% and 40.3%.
Dividends Update: S&P 500 dividends rose by 1.8% to $168.1 billion in Q3 2025, compared to $165.2 billion in Q2 2025, and were 7.0% higher than the $157.0 billion reported in Q3 2024.

Overview of SPYD: The State Street SPDR Portfolio S&P 500 High Dividend ETF (SPYD), launched in 2015, offers broad exposure to the Large Cap Value category and aims to match the performance of the S&P 500 High Dividend Index, focusing on high dividend-paying stocks.
Investment Strategy: SPYD utilizes a smart beta approach, selecting stocks based on fundamental characteristics rather than market capitalization, and has a low expense ratio of 0.07%, making it a cost-effective option for investors.
Performance and Holdings: As of December 2025, SPYD has a 12-month trailing dividend yield of 4.43% and a year-to-date return of approximately 5.18%, with significant allocations in the Real Estate, Financials, and Consumer Staples sectors.
Comparison with Other ETFs: Investors may also consider other ETFs like Schwab U.S. Dividend Equity ETF (SCHD) and Vanguard Value ETF (VTV), which have larger asset bases and lower expense ratios, while traditional market cap weighted ETFs may offer lower-risk options.

Investment in Dividend ETFs: The article discusses the benefits of investing in dividend-focused exchange-traded funds (ETFs), highlighting their potential for income and portfolio growth through dividend payments and stock appreciation.
Performance of Dividend-Paying Stocks: Historical data shows that dividend growers and payers have significantly outperformed non-payers and those that reduce dividends, making them attractive options for investors.
Highlighted ETFs: Several specific ETFs are recommended, including the Schwab U.S. Dividend Equity ETF and Vanguard Dividend Appreciation ETF, which focus on companies with strong dividend histories and growth potential.
Stock Advisor Recommendations: The article mentions the Motley Fool's Stock Advisor service, which identifies top stocks for investment, suggesting that while dividend ETFs are valuable, there may be higher growth opportunities in selected stocks.
Market Overview: The U.S. stock market has surged over 30% since April but faces concerns over high valuations, particularly in AI, and a warning from the "Buffett Indicator" suggesting potential overheating as market capitalization exceeds GDP by more than double.
Dividend Investing Appeal: Amidst market volatility and economic uncertainty, dividend exchange-traded funds (ETFs) are becoming increasingly attractive to investors seeking steady income, with a focus on both high-yield and dividend growth stocks.
Current Dividend Trends: The dividend yield on the S&P 500 is at its lowest since the dotcom bubble, prompting investors to consider higher-yielding dividend-based ETFs for better returns.
Highlighted Dividend ETFs: Several ETFs are noted for their performance and yields, including the First Trust Dow Jones Global Select Dividend Index Fund (FGD), First Trust Morningstar Dividend Leaders Index Fund (FDL), and iShares International Select Dividend ETF (IDV), among others.









