"SDIV targets the 100 highest-yielding equities globally, spanning emerging markets, mortgage REITs, and distressed sectors. The result is monthly income yielding around 8%. A $100,000 position generates approximately $8,000 annually in dividends, paid in monthly installments averaging $650 to $700. The fund achieves this through heavy exposure to Brazilian financials, Norwegian energy companies, Hong Kong property firms, and U.S. mortgage REITs."
"Over 14 years, SDIV has paid substantial income while the share price declined roughly 3% from its inception level around $25. Compare that to quality dividend growth funds: SCHD has tripled over the past decade while paying a lower but growing dividend. The 93% portfolio turnover generates taxable events, making SDIV inefficient in taxable accounts. The 0.58% expense ratio, nearly 10 times SCHD's 0.06%, further erodes returns."
SDIV targets the highest-yielding 100 global equities and produces roughly an 8% annual yield paid monthly. The portfolio emphasizes emerging-market financials, energy, Hong Kong property, and U.S. mortgage REITs, which increases sustainability and concentration risk. Monthly distributions fluctuate and have fallen from peaks above $0.25 to about $0.19–$0.20 per share. Over 14 years the fund has generated income while failing to produce meaningful price appreciation. High portfolio turnover (93%) creates taxable events and the 0.58% expense ratio materially reduces net returns. The combination of yield, fees, turnover, and international exposure makes the fund less suitable for taxable, capital-preserving retirement allocations.
Read at 24/7 Wall St.
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