SPDR S&P Dividend ETF (SDY) is rated 'hold' due to positive features like strong diversification and a solid 2.46% estimated yield, as well as negative features like underwhelming quality. There are a couple of reasons why SDY can do well moving forward, including acceleration earnings growth and a relatively attractive 20.77x TTM P/E. However, its arbitrary screen for 20 consecutive years of dividend increases limits opportunity, and more modern strategies, like the one employed by VSDA, are proving superior.