Invesco S&P Ultra Dividend Revenue ETF [RDIV] Stock Forecast

There are red flags with each of the five highest-yielding dividend stocks on the S&P 500. A better option is an ETF that screens for the top dividend yields and lowest payout ratios.

Looking for broad exposure to the Large Cap Value segment of the US equity market? You should consider the Invesco S&P Ultra Dividend Revenue ETF (RDIV), a passively managed exchange traded fund launched on 10/01/2013.

The Invesco S&P Ultra Dividend Revenue ETF features stocks with high dividend yields and low payout ratios. The SPDR Portfolio S&P 500 High Dividend ETF invests in the 80 highest-yielding stocks in the S&P 500.

The RDIV gives exposure to high-yielding companies in the S&P 900 Index. RDIV has performed well in the short term, with a 7.2% return in 2022. However, longer-term returns are more modest.

Style Box ETF report for RDIV

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Style Box ETF report for RDIV

RDIV selects 60 high-yielding large- and mid-cap stocks and weights them by revenue. Its expense ratio is 0.39% and RDIV has nearly $1 billion in assets under management. RDIV is expected to yield close to 4%, a significant improvement on its 3.17% trailing yield. However, its dividend growth is poor, meaning it's less appropriate for long-term buyers.

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