This Invesco ETF Pays a 4.71% Yield With 50 Low-Volatility Dividend Stocks (3x the S&P 500)

• SPHD yields 4.71% through 50 equal-weighted stocks in defensive sectors with a 0.30% expense ratio.

• Top holdings include Pfizer (6.53% yield), Altria (7.04% yield with 77.9% payout ratio), and Healthpeak REIT (7.14% yield).

• SCHD offers 3.5% yield with stricter quality screens requiring 10+ years of dividend growth history.

• If you’re thinking about retiring or know someone who is, there are three quick questions causing many Americans to realize they can retire earlier than expected. take 5 minutes to learn more here

Invesco High Dividend Low Volatility ETF (NYSEARCA:SPHD) generates its 4.71% yield – roughly three times the S&P 500’s current dividend – by holding a concentrated portfolio of 50 U.S. stocks selected for high dividend yields and low volatility. With $3.1 billion in assets and a reasonable 0.30% expense ratio, SPHD takes an equal-weight approach to defensive sectors including utilities, REITs, healthcare, and consumer staples. The fund’s income comes directly from dividends paid by underlying companies, making the sustainability of those corporate payouts the critical factor for investors.

The Invesco SPHD ETF offers a 4.71% dividend yield, approximately three times the S&P 500, by focusing on high dividend, low volatility U.S. stocks. This infographic details its portfolio, top holdings, and an alternative dividend growth ETF.

SPHD’s dividend safety depends heavily on its largest positions. The top five holdings represent approximately 14% of the portfolio, with significant exposure to established dividend payers across multiple sectors.

Pfizer (NYSE:PFE) offers a 6.53% yield with a conservative 36.4% payout ratio and 19 consecutive years of dividend increases. Despite post-COVID revenue declines—Paxlovid sales dropped 55% and Comirnaty fell 20%—the company’s non-COVID portfolio grew 4% operationally with strong demand for Eliquis and Vyndaqel. Operating cash flow of $4.6 billion supports the dividend comfortably, though dividend growth has slowed to just 2.4% annually from a historical 6.9% rate.

Altria (NYSE:MO) yields 7.04% with a 77.9% payout ratio based on adjusted earnings. The tobacco giant maintains a 19-year dividend growth streak despite industry headwinds, raising its payout 3.9% in 2025. With exceptional 44% profit margins and $3.48 billion in operating cash flow, the dividend appears sustainable near-term, though declining smokeable and oral tobacco volumes pose long-term risks.

Healthpeak Properties (NYSE:DOC) delivers the highest yield at 7.14% but shows negative GAAP earnings. As a REIT, DOC should be evaluated on funds from operations rather than net income. The company guides to $1.78-$1.84 in FFO per share with $322 million in operating cash flow, though negative net income and planned asset sales warrant monitoring.

Verizon (NYSE:VZ) maintains a 58% payout ratio with $11.3 billion in operating cash flow supporting its 6.53% yield. The telecom’s 19-year dividend growth streak remains intact despite $170.5 billion in debt and an ongoing strategic transformation.

Dominion Energy (NYSE:D) yields 4.56% with a 57% payout ratio, providing stable utility sector exposure with consistent earnings growth guidance.

SPHD’s dividend appears moderately safe based on top holdings, though investors should monitor payout ratios and business fundamentals quarterly. For comparison, the Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) offers a 3.5% yield with stricter quality screens requiring 10 consecutive years of dividend growth. SCHD emphasizes dividend growth sustainability over absolute yield, holding companies like Coca-Cola (NYSE:KO) and Home Depot (NYSE:HD). While SCHD yields less than SPHD, its focus on dividend aristocrats with lower payout ratios may provide more durable income growth for long-term investors seeking both yield and capital appreciation.

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