iShares Select Dividend ETF (DVY)

DVY offers high, consistent dividends with a value tilt, focusing on mature sectors like utilities and financials, and trades at a significant valuation discount. The fund's conservative sector allocation provides lower downside risk and income stability but limits growth potential, especially with minimal technology exposure. DVY's performance lags in bull markets but holds up well during downturns, making it attractive for income-focused and risk-averse investors.

Size matters in the world of exchange traded fund (ETF) investing. Generally-speaking, the larger the ETF, the more stability and consistency investors will  Key Points For investors looking to create reliable income streams for retirement, here are three great ETFs to focus on.

U.S. GDP grew 3% in Q2 2025, beating forecasts and easing recession fears as investors eye VTV, XLU, DVY, DFUV and SPYD.

Income investors often focus on a stock's dividend yield, but dividend yield alone doesn't provide anywhere near enough information when it comes to selecting exchange-traded funds (ETFs).

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them. If you’ve got a $3 million nest egg to put to work, a dividend-focused strategy could be the right fit for you. Even with such a towering fortune to invest, though, investors should resist the urge to maximize their yield. Undoubtedly, it’s certainly tempting to ditch the so-called 4% rule for the dust with the advent of numerous covered call and premium income ETFs (Exchange-Traded Funds) that offer 8% and sometimes more than 10%. High-yield ETFs may be a great supplement, but may not be the best core holding in the world for an investor who values volatility stability (as I’ve explained in prior pieces, premium income ETFs can experience great flucutation in yield in any given month) and, perhaps more importantly, the means to grow one’s wealth over time via capital gains. Sure, it’s fine to be content with a big, fat yield and not give much, if any, thought to how much one’s shares stand to appreciate over time. But for investors of all ages, I do think that the impact of capital gains should play a larger role in influencing one’s long-term investment decisions. In any case, let’s consider the case of a Reddit user from r/dividends who’s looking for a “low-risk” mix of assets that’s capable of generating a quarter million dollars worth of annual income (via dividends and distributions) with around $3 million in invested principal. It sounds like an achievable goal, but are higher-yielding stocks, REITs (Real Estate Investment Trusts), and ETFs really the right picks for a low-risk portfolio? Let’s find out. Key Points in This Article: If you’re aiming for $250,000 in annual income, you’ll need at least 8.3% yield from a $3 million portfolio. Instead of yield-chasing, ETFs like the DVY can provide substantial yield and serve as the backbone of an income portfolio. A blend of covered call strategies and high-yield stocks can round out your dividend plan. Should ETFs be a part of your investment strategy? Why not meet with a financial advisor near you for a complete portfolio review? Click here to get started today. (Sponsored) An 8.3% Yield Is Needed to Generate $250k in Annual Income From a $3 Million Portfolio Right off the bat, our Reddit user is breaking the 4% rule by targeting an amount of income that implies a yield just north of 8%. And while there are a growing selection of investment products as well as individual stocks that yield well north of that amount, I do think that one would either have to put themselves at higher risk of capital downside or cap their potential upside with a product such as a covered call ETF, which sells call options against held stocks. As always, a financial advisor would be able to provide the best advice for any individual’s goals. And while I’m not against sprucing up a high-income portfolio with the likes of some specialty income ETFs, I do think that the “core” or bedrock of a so-called “low-risk” portfolio should be made of high-quality dividend stocks that can produce a good amount of capital gains in addition to dividend growth. Having a decent upfront yield of around 3-5% doesn’t hurt, either. Indeed, an advisor would be able to gather enough information to know what our Reddit user considers “low-risk” or “safe.” Does that mean a low chance of dividend or distribution cuts? Or steering clear of significant downside in the face of a stock market meltdown”? It’s hard to say. Either way, I’d suggest starting with a dividend-focused broad ETF, like the iShares Select Dividend ETF (NASDAQ:DVY), which yields 3.7% at the time of writing, and going from there. High-yield REITs, covered call ETFs and individual dividend payers may be considered, provided one knows what they’re getting into. Covered Calls & High-Yield: “Accidentally High” Dividend Stocks Are Popular Among Dividend Investors Whether one chooses to go the route of covered call ETFs, which can be a good yield boost provided one knows the risks and trade-offs, or with distressed individual names that have “accidentally” high yields, investors should put in the work to value firms before buying shares of any company. For someone with $3 million, I’d say there’s more than enough to hire a financial advisor who acts as a fiduciary. I think they’d suggest reducing one’s yield expectations. Perhaps it makes more sense to aim for a $150k annual income than $250k one. That’d entail a more conservative yield of 5% and allow for greater capital gains potential. The post I Want to Invest $3 Million for $250,000 a Year in Dividends. What’s the Best Low-Risk Portfolio Mix? appeared first on 24/7 Wall St..

Launched on 11/03/2003, the iShares Select Dividend ETF (DVY) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market.

Making its debut on 11/03/2003, smart beta exchange traded fund iShares Select Dividend ETF (DVY) provides investors broad exposure to the Style Box - Large Cap Value category of the market.

Holding a bunch of stocks from the same sector doesn't mean you're diversified. In fact, it could make your portfolio more vulnerable. Small positions (

Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the iShares Select Dividend ETF (DVY) is a passively managed exchange traded fund launched on 11/03/2003.

Dividend investing has struggled recently, but there are signs the long "winter" for the U.S. yield stocks may be ending. iShares Select Dividend ETF's yield history and recent performance suggest potential, but its high standard deviation and sector composition present risks. Despite some encouraging signs, I remain cautious about DVY's long-term prospects due to macroeconomic uncertainties and sector vulnerabilities.

Launched on 11/03/2003, the iShares Select Dividend ETF (DVY) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Value category of the market.

The S&P 500 retreated due to inflation and interest rate concerns, with tech selloffs and high valuations adding to investor fear. WisdomTree U.S. Quality Dividend Growth Fund ETF is downgraded to hold due to its tech exposure, while iShares Select Dividend ETF is rated strong buy. DVY offers solid share price momentum, hefty dividend yield, and healthy liquidity, with strong performance from utilities and financials sectors.

Upgrading iShares Select Dividend ETF to a buy due to solid valuation, technical uptrend, and favorable High Dividend factor performance. DVY offers broad exposure to high dividend-paying U.S. equities with a 3.5% yield and low 12.2% annualized volatility. Despite sector risks, DVY's valuation metrics, including a P/E ratio under 13x and PEG ratio above 1.5x, are attractive.

Retirement can be daunting, but it doesn't need to be. Imagine having an expert in your corner to help you with your financial goals.

The iShares Select Dividend ETF (DVY) was launched on 11/03/2003, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market.

Even if you've only been investing a short time, you've likely learned the importance of spreading out your risk by diversifying your portfolio. Diversification comes in a variety of flavors, from gaining exposure to different sectors to buying stocks that have varying market capitalizations.