HDV Dividend Investment Complete Guide 2025
Build a Focused High-Dividend Portfolio with iShares Core High Dividend ETF 🎯
HDV ETF is a focused high-dividend ETF from BlackRock that invests in 75 carefully selected high-quality U.S. dividend-paying stocks, providing stable dividend income and capital growth.
Use our dividend calculator to forecast your future dividend returns and develop your investment strategy.
- - Current NAV: $115.09 (as of May 23, 2025)
- - 12-Month Trailing Dividend Yield: ~3.4%
- - Total Assets Under Management: $11.1 billion
- - Expense Ratio: 0.08%
- - Year-to-Date Return (YTD): 3.2%
💡 Note: HDV pays dividends quarterly, typically in March, June, September, and December. With its focused approach of investing in 75 high-quality dividend stocks, HDV offers higher dividend yields compared to broader dividend ETFs like VYM.
HDV (iShares Core High Dividend ETF) is a popular ETF among investors who prefer focused high-dividend investing. It invests in 75 high-quality U.S. dividend-paying stocks selected by Morningstar, providing higher dividend yields and stable capital growth.
HDV Stock Analysis
Check detailed information about HDV's complete dividend history and performance trends. Success in focused investing starts with accurate information.
HDV Portfolio Analysis
75 Holdings, Sector Allocation, Financial Metrics
HDV Dividend History & Yields
Complete dividend records, annual payments, yield trends
HDV Investment Tips
The dividend information page shows HDV's complete dividend history, dividend growth trends, and real-time yields. Since HDV focuses on 75 stocks, individual stock performance has a more direct impact on the overall fund. Analyzing price movements around ex-dividend dates can also be helpful for timing your investments.
1. What is HDV ETF?
HDV was launched by BlackRock in March 2011 and tracks the Morningstar Dividend Yield Focus Index. This index consists of high-quality U.S. stocks with relatively high dividend yields that have passed Morningstar's rigorous financial health and quality screening. With approximately 75 carefully selected holdings, HDV takes a more focused investment approach compared to VYM's 544 holdings.
Key Features
2. Understanding HDV's Investment Strategy
2-1. Portfolio Composition
HDV invests in approximately 75 U.S. high-dividend stocks selected through Morningstar's rigorous screening process. While diversified across healthcare, consumer staples, energy, financials, and utilities, HDV maintains a much more focused portfolio compared to VYM's 544 holdings, allowing for more concentrated exposure to high-quality dividend payers.
Top Holdings (Major Portfolio Weights) - May 2025
Sector Allocation (May 2025)
23.1%
18.7%
15.9%
14.3%
12.4%
7.8%
4.2%
3.6%
Focused portfolio of 75 total holdings
3. HDV Dividend Characteristics
HDV's dividends are characterized by seeking both high yield and stability. Dividends are paid quarterly, and the fund's focus on stocks that pass Morningstar's rigorous quality criteria helps ensure dividend sustainability from high-quality companies.
HDV vs VYM Dividend Comparison
Major Dividend ETF Yield Comparison
Source: BlackRock, May 2025
HDV Annual Dividend Trends
HDV's annual dividend per share trends over the past 5 years:
| Year | Dividend per Share ($) | YoY Growth (%) | Dividend Yield (%) |
|---|---|---|---|
| 2020 | $3.35 | 1.8% | 4.2% |
| 2021 | $3.39 | 1.2% | 3.1% |
| 2022 | $3.18 | -6.2% | 3.4% |
| 2023 | $3.67 | 15.4% | 3.6% |
| 2024 | $3.18 | -13.4% | 3.0% |
| 5-Year Average | - | -0.2% | 3.5% |
* Dividend yield is calculated as the ratio to average stock price for the year.
* Based on BlackRock official data (as of May 2025)
Advantages of HDV's Focused Investment
- • HDV provides higher dividend yields (3.4%) compared to VYM (3.0%) through focused investing in 75 selected stocks.
- • Portfolio consists only of high-quality companies that pass Morningstar's rigorous quality screening.
- • Focused portfolio allows for more direct reflection of superior stock performance.
- • Strategic weighting in high-dividend sectors like energy and healthcare.
4. HDV Investment Considerations
Advantages
- ✓Higher dividend yield than VYM (3.4% vs 3.0%)
- ✓Direct reflection of superior performance through 75 focused holdings
- ✓Morningstar's rigorous quality screening process
- ✓Low expense ratio (0.08%) for cost efficiency
- ✓14 years of proven fund management history
Disadvantages
- •Lower diversification than VYM (75 vs 544 holdings)
- •Higher volatility due to concentrated investment approach
- •More sensitive to individual stock performance
- •Sector concentration risk
- •Limited dividend growth over recent 5 years
5. HDV Performance Analysis
Performance History
| Year | Total Return (%) | Dividend Yield (%) | VYM Return (%) |
|---|---|---|---|
| 2020 | -2.05% | 4.2% | -8.17% |
| 2021 | 28.18% | 3.1% | 40.55% |
| 2022 | 18.54% | 3.4% | 1.18% |
| 2023 | -4.65% | 3.6% | -2.54% |
| 2024 | 14.92% | 3.0% | 31.15% |
| 2025 (YTD) | 3.2% | 0.7% | 2.63% |
Source: BlackRock official data (as of May 23, 2025)
HDV Performance Analysis by Market Conditions
HDV shows differentiated performance in various market conditions:
Strong in Energy Bull Markets
During the 2022 energy price surge, HDV recorded a strong 18.54% return. Its significant energy sector allocation allows it to benefit directly from commodity price increases.
Double-Edged Nature of Focused Investing
With 75 concentrated holdings, HDV directly reflects superior stock performance, but it can also be more affected when specific sectors or stocks underperform.
Relative Weakness in Tech-Led Bull Markets
In 2021 and 2024 tech-led bull markets, HDV underperformed VYM. Its traditional value stock orientation can lag during growth stock rallies.
Key Insights
- Higher dividend yields and selective performance creation through focused investing
- Sensitive to specific sector performance, particularly energy and healthcare
- Higher volatility than VYM but provides superior dividend yields
- Can play a complementary role to VYM in various market environments
6. HDV vs Other Dividend ETFs
Popular Dividend ETF Comparison
| Criteria | HDV | VYM | SCHD | JEPI |
|---|---|---|---|---|
| Underlying Index | Morningstar Dividend Yield Focus | FTSE High Dividend Yield | Dow Jones U.S. Dividend 100 | S&P 500 |
| Investment Strategy | Focused High-Dividend Stocks | Broad High-Dividend Stocks | Dividend Growth Stocks | ELN + OTM Covered Calls |
| Number of Holdings | 75 | 544 | 100 | 500 |
| Dividend Yield | 3.4% | 3.0% | 3.6% | 7~9% |
| Dividend Frequency | Quarterly | Quarterly | Quarterly | Monthly |
| Expense Ratio | 0.08% | 0.06% | 0.06% | 0.35% |
| Inception Year | 2011 | 2006 | 2011 | 2020 |
HDV vs VYM: Which to Choose?
7. Frequently Asked Questions
Which is better: HDV or VYM?
HDV and VYM each take different strategic approaches. HDV focuses on 75 carefully selected stocks, providing a higher dividend yield of 3.4% and consisting only of high-quality companies that pass Morningstar's rigorous quality screening. VYM diversifies broadly across 544 holdings, offering a 3.0% dividend yield with greater stability. Investors seeking higher dividend income and comfortable with focused investing should choose HDV, while those preferring stability and broad diversification should opt for VYM. Many investors hold both ETFs together for complementary benefits.
Isn't HDV's focused investment strategy risky?
HDV's 75-stock focused investment approach has both advantages and disadvantages. On the risk side, it has higher volatility than VYM (544 holdings) and is more sensitive to specific stock or sector underperformance. However, it also has benefits: it consists only of the highest quality dividend stocks that pass Morningstar's rigorous quality screening, allowing for more direct reflection of superior company performance. It also provides higher dividend yields (3.4%). To reduce concentrated investment risks, consider using HDV as only part of your portfolio alongside VYM or other broad ETFs.
Are HDV's dividends stable?
HDV's dividends are relatively stable but not completely consistent. Looking at the past 5 years, dividends started at $3.35 in 2020, rose to $3.67 in 2023, then declined to $3.18 in 2024, showing some volatility. This is because the focused portfolio is more sensitive to changes in constituent companies' dividend policies. However, it consists of excellent dividend stocks that pass Morningstar's rigorous quality criteria and has consistently paid dividends over 14 years of operation. While you can expect stable dividend income long-term, consider that short-term volatility is possible.
What sectors does HDV primarily invest in?
As of May 2025, HDV's sector allocation consists of Healthcare (23.1%), Energy (18.7%), Consumer Staples (15.9%), Financials (14.3%), and Utilities (12.4%). The high weighting in healthcare and energy sectors is particularly notable. Healthcare includes stable dividend-paying pharmaceutical companies like Johnson & Johnson, AbbVie, and Pfizer, while energy includes high-dividend companies like Exxon Mobil and Chevron. This sector composition can provide stable dividend income along with additional profit opportunities during commodity price increases. However, concentration in specific sectors means greater impact during sector downturns.
What's the optimal strategy for HDV investing?
There are several effective strategies for HDV investing. First, use dividend reinvestment (DRIP) to maximize compounding effects. Second, to diversify concentrated investment risks, consider building a portfolio combining HDV with other dividend ETFs like VYM or SCHD. Third, since HDV has high weightings in energy and healthcare, consider investment timing based on these sector cycles. Fourth, use dollar-cost averaging through regular investments to reduce volatility. Finally, to maximize HDV's 3.4% dividend yield, consider holding it in tax-advantaged accounts (IRA, 401k, etc.). HDV is an ideal middle-ground choice for investors who want higher dividend yields than VYM but want to avoid excessive risk.
8. Conclusion and Investment Strategy
Who is HDV suitable for?
Suitable Investor Types:
- Investors seeking higher dividend yields (3.4%) than VYM
- Those pursuing selective superior performance through focused investing
- Investors confident in specific sectors like healthcare and energy
- Those who trust Morningstar's rigorous quality standards
- Intermediate investors who can tolerate moderate volatility levels
Investors Who Should Be Cautious:
- Investors wanting maximum stability and broad diversification (consider VYM)
- Conservative investors uncomfortable with concentrated investment volatility
- Those concerned about sector concentration risks
- Investors absolutely requiring monthly dividend income (consider monthly dividend ETFs)
Effective HDV Utilization Strategies:
- Balanced Portfolio Construction: Combine HDV 50% + VYM 50% to leverage both focused and diversified investing advantages
- Dividend Reinvestment Strategy: Reinvest the 3.4% high dividend yield to maximize compounding effects
- Sector Cycle Consideration: Strategic investing considering energy and healthcare sector cycles
- Regular Additional Investment: Mitigate volatility risk through dollar-cost averaging
- Tax-Efficient Account Utilization: Prioritize placement in tax-advantaged accounts given high dividend yields