RDIV: Generous Dividend Yield But High Turnover, Questionable Performance, A Hold

  • RDIV offers exposure to a revenue-weighted portfolio of the S&P 900 constituents that were screened for high dividend yields. With a 4.9% weighted average DY of the portfolio, RDIV is a champion of calibrating inexpensive equity mixes. In part thanks to that, it has beaten IVV this year. Alas, its long-term performance has not been particularly successful, growth exposure is minimal, and weighted average dividend growth rates of its portfolio are hardly compelling.