7% Dividend Yield Looks Great — But Here’s What Investors Should Watch Out

A recent analysis of the exchange‑traded fund Global X SuperDividend U.S. ETF (DIV) warns that its roughly 7% yield — while attractive — comes with some serious drawbacks. On the plus side, DIV offers a juicy income stream, drawing in investors hunting for high dividends. But the catch? The fund’s underlying holdings suffer from slow growth, meaning that the dividend yield may not be sustainable over the long term. Also, high dividend yields often indicate that a company (or fund) is returning most of its earnings to shareholders instead of reinvesting for future growth — which can hamper long‑term value appreciation. In other words: the 7% yield might feel sweet now, but income‑seeking investors should weigh the risk that this payout may come at the expense of the fund’s long‑term performance. #highdividendyield #incomeinvesting #dividends #ETFrisk #SlimScan #GrowthStocks #CANSLIM