This Invesco ETF Pays a 4.71% Yield With 50 Low-Volatility Dividend Stocks (3x the S&P 500)

"Invesco High Dividend Low Volatility ETF ( NYSEARCA:SPHD) generates its 4.71% yield - roughly three times the S&P 500's current dividend - by holding a concentrated portfolio of 50 U.S. stocks selected for high dividend yields and low volatility. With $3.1 billion in assets and a reasonable 0.30% expense ratio, SPHD takes an equal-weight approach to defensive sectors including utilities, REITs, healthcare, and consumer staples. The fund's income comes directly from dividends paid by underlying companies,"

"With exceptional 44% profit margins and $3.48 billion in operating cash flow, the dividend appears sustainable near-term, though declining smokeable and oral tobacco volumes pose long-term risks. Healthpeak Properties ( NYSE:DOC) delivers the highest yield at 7.14% but shows negative GAAP earnings."

"Pfizer ( NYSE:PFE) offers a 6.53% yield with a conservative 36.4% payout ratio and 19 consecutive years of dividend increases. Despite post-COVID revenue declines-Paxlovid sales dropped 55% and Comirnaty fell 20%-the company's non-COVID portfolio grew 4% operationally with strong demand for Eliquis and Vyndaqel. Operating cash flow of $4.6 billion supports the dividend comfortably, though dividend growth has slowed to just 2.4% annually from a historical 6.9% rate."

SPHD delivers a 4.71% distribution by holding 50 U.S. stocks chosen for high yields and low volatility, managing $3.1 billion with a 0.30% expense ratio. The fund equally weights positions across defensive sectors such as utilities, REITs, healthcare, and consumer staples. Income is derived directly from corporate dividends, so payout sustainability determines income reliability. The top five holdings constitute about 14% of the portfolio, concentrating dividend risk. Pfizer provides a 6.53% yield with $4.6 billion in operating cash flow but slower dividend growth. Altria yields 7.04% with strong margins yet long-term volume risks. Healthpeak yields 7.14% and should be assessed on FFO.

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