Is IVV an Expensive Dividend Stock? A Closer Look

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Here at nppsc.com, we often explore various investment strategies, and dividend investing is a cornerstone for many. Recently, the iShares Core S&P 500 ETF (IVV) has been brought to our attention, with some suggesting it’s one of the “most expensive dividend stocks per share.” Let’s delve into this perspective and provide a clearer picture for our readers.

Over the past 12 months, IVV has distributed a total of $7.74 per share in dividends. At first glance, this might seem like a substantial payout compared to individual stocks trading at much lower prices. However, it’s crucial to consider the price of the underlying asset.

To put this into context, let’s look at how the price of IVV has moved over the past year:

  • Price around April 19, 2025 (Last Week): Approximately $528.67 per share.
  • Price around April 26, 2024 (One Year Ago): Approximately $545.08 per share.

As you can see, IVV is not a low-priced stock. Its higher per-share dividend payout is directly linked to its higher share price. Therefore, it’s not accurate to label it as one of the “most expensive dividend stocks per share” without considering the dividend yield.

Understanding Dividend Yield

Dividend yield is the annual dividend payment per share divided by the current price per share. It’s expressed as a percentage and provides a more meaningful way to compare dividend payouts across different stocks and ETFs, regardless of their individual share prices.

For IVV, with an annual dividend of $7.74 and a recent price of around $528.67, the approximate dividend yield is:

$$\frac{\$7.74}{\$528.67} \times 100\% \approx 1.46\%$$

This yield of around 1.46% is more in line with the average dividend yield of the S&P 500 index itself. While it’s a respectable yield, it doesn’t classify IVV as an exceptionally high-dividend-paying investment.

Why the Misconception?

The idea that IVV is an “expensive dividend stock per share” likely stems from the high dollar amount of the dividend payout per share. However, this absolute number is less important than the yield it represents relative to the investment cost (the share price).

Key Takeaways:

  • The $7.74 per share dividend from IVV over the past year is a total of several quarterly payments.
  • IVV’s higher per-share dividend is directly related to its higher share price.
  • The dividend yield, which is around 1.46%, provides a better metric for comparing dividend payouts.
  • IVV’s dividend yield is generally in line with the broader S&P 500 index.

In conclusion, while IVV offers a solid dividend stream, it’s not particularly “expensive” in terms of dividend yield. Investors should always focus on dividend yield rather than just the absolute dividend amount per share to make informed comparisons.

Stay tuned to nppsc.com for more insights into dividend investing and ETF analysis!

Here at nppsc.com, we often explore various investment strategies, and dividend investing is a cornerstone for many. Recently, the iShares Core S&P 500 ETF (IVV) has been brought to our attention, with some suggesting it’s one of the “most expensive dividend stocks per share.” Let’s delve into this perspective and provide a clearer picture for our readers.

Over the past 12 months, IVV has distributed a total of $7.74 per share in dividends. At first glance, this might seem like a substantial payout compared to individual stocks trading at much lower prices. However, it’s crucial to consider the price of the underlying asset.

To put this into context, let’s look at how the price of IVV has moved over the past year:

  • Price around April 19, 2025 (Last Week): Approximately $528.67 per share.
  • Price around April 26, 2024 (One Year Ago): Approximately $545.08 per share.

As you can see, IVV is not a low-priced stock. Its higher per-share dividend payout is directly linked to its higher share price. Therefore, it’s not accurate to label it as one of the “most expensive dividend stocks per share” without considering the dividend yield.

Understanding Dividend Yield

Dividend yield is the annual dividend payment per share divided by the current price per share. It’s expressed as a percentage and provides a more meaningful way to compare dividend payouts across different stocks and ETFs, regardless of their individual share prices.

For IVV, with an annual dividend of $7.74 and a recent price of around $528.67, the approximate dividend yield is:

$$\frac{\$7.74}{\$528.67} \times 100\% \approx 1.46\%$$

This yield of around 1.46% is more in line with the average dividend yield of the S&P 500 index itself. While it’s a respectable yield, it doesn’t classify IVV as an exceptionally high-dividend-paying investment.

Why the Misconception?

The idea that IVV is an “expensive dividend stock per share” likely stems from the high dollar amount of the dividend payout per share. However, this absolute number is less important than the yield it represents relative to the investment cost (the share price).

Key Takeaways:

  • The $7.74 per share dividend from IVV over the past year is a total of several quarterly payments.
  • IVV’s higher per-share dividend is directly related to its higher share price.
  • The dividend yield, which is around 1.46%, provides a better metric for comparing dividend payouts.
  • IVV’s dividend yield is generally in line with the broader S&P 500 index.

In conclusion, while IVV offers a solid dividend stream, it’s not particularly “expensive” in terms of dividend yield. Investors should always focus on dividend yield rather than just the absolute dividend amount per share to make informed comparisons.

Stay tuned to nppsc.com for more insights into dividend investing and ETF analysis!