SDY Dividend: Next Ex-Date, History & Total Return

The State Street SPDR S&P Dividend ETF (SDY) seeks investment results that, before fees and expenses, correspond generally to the total return performance of the S&P High Yield Dividend Aristocrats Index. That index is designed to measure the performance of the highest dividend yielding constituents of the S&P Composite 1500 Index that have followed a managed-dividends policy of consistently increasing dividends every year for at least 20 consecutive years.¹

SDY uses a sampling strategy, so it is not required to purchase all of the securities in the index. The adviser may invest in a subset of them, or in substantially all of them in approximately the same proportions as the index, as it determines to be in the best interest of the fund. Under normal market conditions, the fund generally invests substantially all, but at least 80%, of its total assets in the securities comprising the index.¹

In seeking to track the index, SDY's assets may be concentrated in an industry or group of industries, but only to the extent that the index concentrates in a particular industry or group of industries. Swaps and futures contracts (each, a type of derivative instrument) may be used by the fund in seeking performance that corresponds to the index and in managing cash flows.¹

Beyond its dividend record, a company needs a float-adjusted market capitalization of at least $2 billion ($1.5 billion for current index constituents) and a minimum three-month average daily value traded of at least $5 million ($4 million for current constituents) to be eligible for SDY's index. The fact sheet says that, due to the screen for 20 years of consecutively raising dividends, stocks included in the index have both capital growth and dividend income characteristics.^1,2

Stocks are weighted by indicated yield, which is the annualized gross dividend payment per share divided by price per share. Three caps apply: no stock can have a weight greater than 4% in the index, greater than 30 times its weight in the S&P Composite 1500 Index, or greater than the ratio of its three-month average daily value traded divided by $2 billion.¹

The index is sponsored by S&P Dow Jones Indices LLC, which is not affiliated with the fund or the adviser. Its components are reviewed annually in January for continued inclusion, and it is re-weighted quarterly after the closing of the last business day of January, April, July and October.¹

Dividend Stacker's record of past payments begins with an ex-date of December 16, 2005, and shows SDY making 4 distributions in every completed year from 2006 through 2025. Its per-share amounts are adjusted for any share splits or reverse splits.³

From 2013 through 2018, totals rose 50.3% in 2013, 30.2% in 2014 and 22.1% in 2015 to $4.56, fell 38.0% in 2016, rose 56.7% in 2017 and fell 44.9% in 2018 to $2.44. In 2015 the largest single payment was $3.17 and the smallest was $0.3963.³

The annual total then rose 8.1% in 2019, 14.5% in 2020 and 12.2% in 2021, slipped 5.8% in 2022, then rose 3.2% in 2023, 2.6% in 2024 and 7.4% in 2025, reaching $3.63 per share. That makes 3 consecutive completed years with a higher annual total.³

Dividend-paying securities, as a group, can fall out of favor with the market, causing such companies to underperform companies that do not pay dividends. The prospectus adds that changes in the dividend policies of the companies SDY holds, or in the capital resources available for their dividend payments, may adversely affect the fund.¹

SDY may invest a substantial portion of its assets within one or more economic sectors or industries, which may change from time to time. Greater investment focus on one or more sectors or industries increases the potential for volatility and the risk that events negatively affecting such sectors or industries could reduce returns, potentially causing the value of the fund's shares to decrease, perhaps significantly. The prospectus lists financial sector, real estate sector and utilities sector risks for the fund.¹

Due to political and regulatory factors, a utility's rate changes ordinarily occur only following a delay after changes in its financing costs. The prospectus says this will tend to favorably affect a regulated utility company's earnings and dividends in times of decreasing costs, but conversely, will tend to adversely affect earnings and dividends when costs are rising.¹

A financial company's profitability is largely dependent on the availability and cost of capital funds and can fluctuate significantly when interest rates change or due to increased competition. A real property company may be subject to risks similar to those associated with direct ownership of real estate, including declines in the value of real estate, losses from casualty or condemnation, and changes in interest rates.¹