iShares S&P Value Index Fund Includes Dividend-Paying Stocks

If you want to own a diversified portfolio of large companies that pay dividends, the iShares S&P Value Index Fund (IVE), a low-fee exchange-traded fund (ETF), may be for you. IVE tracks the S&P 500/Citigroup Value Index which includes a subset of stocks from the S&P 500 Index. Stocks in the value index tend to have a lower price to book ratio and a higher dividend yield than their growth stock counterparts. Therefore, IVE includes a higher proportion of financial, industrial, energy and utility stocks than the broader S&P 500 index. Citigroup (C) is the fund's largest holding.

The September 2006 quarterly dividend is $0.36 so the annual dividend yield is 1.91 percent (($0.36*4)/$75.5) as of the $75.55 close for November 29, 2006.

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Posted November 30, 2006.