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Home/News Feed/Healthcare ETF XLV lowers dividend income; direct stock picks offer better yields.
XLV
$168.00
+$0.23 +0.14%

Healthcare ETF XLV lowers dividend income; direct stock picks offer better yields.

Market News
31 Aug 2026
24/7 Wall Street
View Source
Neutral
Healthcare ETF XLV lowers dividend income; direct stock picks offer better yields.

The Health Care Select Sector SPDR Fund (XLV) offers broad healthcare exposure but delivers a low dividend yield around 1.5% due to its cap-weighted structure favoring large, lower-yield stocks like Eli Lilly. Directly owning top XLV holdings AbbVie, Johnson & Johnson, and Bristol Myers Squibb can significantly boost income, with yields ranging from 2% to 3.75% and consistent dividend growth. However, this approach increases single-stock risk and reduces diversification. Investors seeking income should consider adding these stocks alongside or instead of XLV, especially in tax-advantaged accounts, to enhance dividend returns while maintaining some sector exposure.

More News (XLV)

Healthcare equipment sector undervalued; global healthcare ETF IXJ underperforms US-focused XLV by 2% annually

Healthcare equipment sector undervalued; global healthcare ETF IXJ underperforms US-focused XLV by 2% annually

The healthcare equipment subsector is currently undervalued compared to its historical averages, while other healthcare subsectors appear slightly overvalued. The iShares Global Healthcare ETF (IXJ), which holds 110 stocks with 72% exposure to US com...

Market News
Neutral
3 days ago
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