HDV, FDL and DTD Beat S&P 500 by Up to 9 Points in 2026

2 articles · Updated · 24/7 Wall St. · Aug 16

HDV has returned 20% year to date through Aug. 7, FDL 19% and DTD 16%, all ahead of SPY’s 13% gain as dividend strategies regain favor in 2026.
Higher-for-longer rates, stretched mega-cap valuations and concentration risk have pushed investors toward utilities, energy, healthcare and consumer staples, lifting dividend-heavy portfolios.
HDV’s roughly 3% yield comes with a low 0.08% fee and heavy energy exposure—about one-fifth of assets—while FDL’s 0.40% fee funds a more concentrated dividend-weighted approach led by Chevron, Verizon and Philip Morris.
DTD has lagged the other two but still outperformed the S&P 500 by pairing a roughly 2% yield with broader exposure that includes Microsoft and NVIDIA, plus monthly payouts totaling $0.93 per share through July.
The divergence highlights how dividend ETFs are no longer a single defensive trade in 2026, with yield, sector concentration and tech participation shaping both returns and income stability.