Why Retirees Keep Buying This Dividend ETF After 22 Years of Payments

May 25, 2026 - 01:53

The iShares Select Dividend ETF has been around for over 22 years, making it one of the older income-focused funds still actively traded. For retirees who rely on steady cash flow, the main question is whether that income stream can hold up over time. The fund pays variable quarterly distributions, which come from the dividends of roughly 100 U.S. companies. These companies are screened for their payout history and current yield, so the portfolio tends to favor established businesses with a track record of returning cash to shareholders.

Right now, the ETF offers a trailing yield that remains attractive compared to many bond alternatives. That yield is not fixed, but the fund's focus on dividend consistency has helped it maintain payouts through different market cycles. Retirees keep buying it because they value predictability over excitement. After two decades of payments, the fund has built a reputation for delivering income without requiring constant management or stock picking. For those living on a fixed budget, that kind of reliability matters more than chasing higher returns. The fund also provides diversification across sectors like utilities, financials, and consumer goods, which helps reduce the risk of a single company cutting its dividend. While no investment is completely safe, DVY has proven to be a workhorse for income-focused portfolios.