High-Yield Dividend ETF Emerges as Top Passive Income Play Amid Rate Cuts
The Federal Reserve's rate-cutting cycle has reshaped income strategies, pushing investors toward equity dividends as savings yields diminish. SPDR Portfolio S&P 500 High Dividend ETF (SPYD) gains traction with its equal-weighted basket of 80 high-yield stocks, offering diversification and liquidity uncommon in traditional fixed income.
Unlike market-cap-weighted peers, SPYD's methodology sidesteps concentration risk while delivering a 4.6% dividend yield—nearly triple the S&P 500's average. Real estate and utilities dominate the holdings, sectors known for reliable payouts during economic uncertainty.