Retirees and Income Investors Get Paid Monthly, Plus 20% Gains With This ETF

"The AAM S&P 500 High Dividend Value ETF ( NYSEARCA:SPDV) generates income by holding dividend-paying stocks. With 51 positions from the S&P 500, the fund targets high-yield companies. SPDV delivers monthly distributions, paying $0.10 in January 2026 following steady monthly payouts that have trended upward over two years. Unlike covered call ETFs that manufacture yield through options or leveraged funds that amplify volatility, SPDV's distributions come directly from dividends paid by holdings."

"The trade-off is total return. The fund posted a 20.2% gain over the past year, outperforming the SPDR S&P 500 ETF Trust ( NYSEARCA:SPY), which returned 15.5% over the same period. SPDV's focus shifts value toward income rather than appreciation. Top Holdings Drive the Income Stream Newmont Corp ( NYSE:NEM) anchors SPDV's income strategy as the fund's largest holding at 3.48%. The gold miner's conservative 14.8% payout ratio creates a financial cushion that protects dividend payments even when gold prices decline."

"The oilfield services provider maintains a 45.3% payout ratio, suggesting the dividend remains sustainable even during energy sector downturns. Strong institutional ownership of 90.4% indicates confidence in the company's ability to generate cash flow through commodity cycles. CVS Health ( NYSE:CVS) represents 2.45% of the portfolio but presents dividend sustainability concerns. The healthcare giant offers a 3.4% yield, yet quarterly earnings fell 43.2% year-over-year amid margin pressure."

SPDV generates monthly income by holding 51 high-dividend S&P 500 stocks and paid $0.10 in January 2026 after two years of upward-trending monthly payouts. Distributions come from underlying dividends rather than manufactured options income or leverage. The fund prioritizes income over capital appreciation while still posting a 20.2% one-year gain versus SPY's 15.5%. Top holdings include Newmont (3.48%) with a conservative 14.8% payout ratio and Halliburton (2.57%) with a 45.3% payout and strong institutional ownership. CVS Health (2.45%) yields 3.4% but shows earnings pressure and poses dividend-sustainability risk.

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