New ETF Targets Cash Dividends

The fund is clearly well positioned as a bond-like vehicle in the form of stocks without so much interest rate risk. DVY's current dividend payout rate of 3.85% is nearly double that of the Dow Jones Industrials (2.13%) and approaches those of long-term US Treasuries (10 yr.- 4.2%). While Treasuries are sometimes referred to as "risk-free", when their maturities are long-term they are actually quite sensitive to interest rate hikes. (The value of a bond drops when other new bonds start paying more).