DVY: Benefits From The Rotation Out Of Tech (Rating Upgrade)

Cain Lee8.14K FollowersFollow5ShareSavePlay(12min)Comments(2)SummaryI am upgrading iShares Select Dividend ETF to a buy, citing its ability to capture capital rotation out of technology into value sectors.DVY’s heavy Utilities allocation positions it to benefit from AI-driven data center growth, offering both resilience and exposure to a major secular trend.DVY has outperformed the S&P 500 over the last six months, delivering an 8.19% total return versus SPY’s 1.89%, driven by sector rotation and dividend growth.With a 3.4% yield and a 10-year dividend CAGR of 7.11%, DVY provides robust income growth and potential for further dividend acceleration as Utilities earnings rise. J Studios/DigitalVision via Getty Images Overview 2026 has been off to an interesting start, and investors have seen how fast sentiment can shift in the markets. Only a few quarters ago, investors had extreme optimism around the growth of AI and itThis article was written byCain Lee8.14K FollowersFollowFinancial analyst by day and a seasoned investor by passion, I've been involved in the world of investing for over 15 years and honed my skills in analyzing lucrative opportunities within the market.I specialize in uncovering high quality dividend stocks and other assets that offer potential for long term-growth that pack a serious punch for bill-paying potential. I use myself as an example that with a solid base of classic dividend growth stocks, sprinkling in some Business Development Companies, REITs, and Closed End Funds can be a highly efficient way to boost your investment income while still capturing a total return that follows traditional index funds. I created a hybrid system between growth and income and manage to still capture a total return that is on par with the S&P.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in DVY over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.