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Some Top-Tier Dividend Ideas Reside in SDOG

BY | ETF Database
6:05 am ET 08/27/26 | 3 VIEWS
One or two solid dividend stocks can do a portfolio well, but a broad basket of such names accessible in efficient fashion is an enticing proposition for equity income investors who want to avoid the stock-picking burden.On that note, the ALPS Sector Dividend Dogs ETF (SDOG B-) is one of the payout ETFs to consider. The $1.45 billion SDOG, which turned 14 years old in June, holds the five highest-yielding stocks from 10 of the 11 global industry classification standard (GICS) sectors, with real estate being the exception. In other words, SDOG can be seen as a defensive value strategy. Its 2026 performance belies that defensive label. The ALPS ETF, which yields 3.21%, or more than triple the dividend yield on the S&P 500, is up 22.62% year-to-date. That’s an advantage of more than 1,000 basis points over the benchmark U.S. equity gauge. That’s a testament to SDOG’s methodology turning up a basket of stocks that are, for the most part, delivering the goods this year.Looking at Some SDOG StarsAmong the 2026 stars in the SDOG portfolio, there’s Verizon (VZ), which recently made the cut as one of Morningstar’s top dividend stocks to own. “Verizon is one of the highest-yielding stocks on our list of the best dividend stocks to buy,” noted the research firm’s Susan Dziubinski. “The stock is trading 13% below our fair value estimate of $54 per share. Morningstar senior analyst Mike Hodel notes that price cuts have revived customer growth this year. He adds that Verizon directed 60% of 2025’s cash flows to the dividend and has started to repurchase shares.” Due to equal weighting of sectors, SDOG’s energy exposure is nearly 10% ,and unlike some competing funds in the dividend category, the ALPS ETF includes some midstream stocks — pertinent to dividend investors because that’s an income-rich segment. One of those holdings is Oneok OKE, a steady, committed dividend raiser whose shares have returned nearly 29% year-to-date. The company aims for annual dividend increases in the low-single-digit percentage range. “Management practices a dividend-focused return policy, planning to distribute 75% to 85% of free cash flows through dividends and buybacks, he adds. Shares trade below our $98 fair value estimate,” said Dziubinski. For more news, information, and analysis, visit the ETF Building Blocks Content Hub. VettaFi LLC (“VettaFi”) is the index provider for SDOG, for which it receives an index licensing fee. However, SDOG is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of SDOG.

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