ALPS sector dividend dogs ETF (SDOG) yields 3.48% as defensive sectors outpace the S&P 500 and dividend growth remains strong

Some dividend exchange-traded funds (ETFs) emphasize high yield, while others focus on companies with long records of increasing payouts. The ALPS Sector Dividend Dogs ETF (SDOG) combines both approaches under a single strategy.

How SDOG is constructed

SDOG, with $1.34 billion in assets, tracks the S-Network US Equity WR Large-Cap 500 Index. The fund equally weights the five highest-yielding stocks from 10 global industry sectors based on the GICS framework.

That design produces a trailing 12-month dividend yield of 3.48%, which is nearly triple the S&P 500’s dividend yield. The article notes that the S&P 500’s dividend yield is at the lowest levels in 50 years.

Sector tilts and performance this year

Because sectors are equally weighted, SDOG is overweight defensive groups such as consumer staples and utilities versus the S&P 500, while it is underweight technology.

The strategy has been rewarded in the current environment, the article says, as geopolitical tensions and widening market breadth have encouraged investors to favor defensive areas over growth. Year-to-date, SDOG is up nearly 10%, while the S&P 500 is down.

Dividend growth focus in the holdings

The fund’s holdings include companies with dividend increase streaks measured in decades rather than just years—an emphasis aimed at equity income investors seeking above-average yields and more reliable payout growth.

Examples of SDOG holdings

Verizon Communications (VZ): The article cites Barron’s reporting that shares jumped nearly 12% on Jan. 30 after Verizon reported better-than-expected fourth-quarter subscriber growth and revenue. It also notes that analysts expect earnings to grow 4% in 2026, and that Verizon trades at less than 10 times forward earnings.

Best Buy: Barron’s is cited as expecting profit growth of 1% in 2026. The article adds that Best Buy increased its dividend by a penny to 96 cents last month, and that the stock yields 6%.

Altria (MO): The article adds that Altria is a “dividend king,” defined here as one of 57 companies with a dividend increase streak of at least 50 years. It states Altria’s yield is 6.33% and describes it as a dividend value play.

Index provider note

VettaFi LLC is the index provider for SDOG and receives an index licensing fee. However, SDOG is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability related to the issuance, administration, marketing, or trading of SDOG.