This Dividend ETF Is Up 21% and Doesn’t Own a Single Share of Palantir

Fast Learn

• DVY gained 21% over the previous yr, holding 104 dividend-paying shares throughout utilities, regional banks, and client staples with none momentum names.

• PLTR’s P/E of 131 and nil dividend historical past make it structurally ineligible for DVY, whereas the inventory sits down 27% yr to this point.

• MO anchors DVY’s prime holdings at simply 2% of web belongings, a part of a diversification construction that has compounded right into a 167% ten-year return.

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The iShares Choose Dividend ETF (NASDAQ:DVY) has quietly rewarded earnings buyers with a 21.05% achieve over the previous yr, all with out proudly owning a single share of Palantir Applied sciences (NASDAQ:PLTR), the market’s flashiest momentum inventory. That absence is baked into the fund’s design.

What DVY Really Is

DVY is a dividend-screened fairness fund run by iShares that targets established U.S. firms with constant payout histories. As of April 30, 2026, the fund held 104 positions and reported web belongings of $22.86 billion. The present expense ratio was not disclosed within the fund’s newest NPORT snapshot.

Efficiency has been regular slightly than spectacular. DVY is up 1.33% over the previous week, 3.57% over the trailing month, and 14.48% yr to this point. Zoom out and the image holds: 62.4% over 5 years and 166.59% over ten.

Why It is Up

The rally has been powered by unglamorous earnings shares. The highest ten holdings as of April 30, 2026 learn like a dividend corridor of fame:

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• Altria Group (MO): 2.291%

• Pfizer (PFE): 2.216%

• T. Rowe Worth Group (TROW): 2.023%

• Verizon Communications (VZ): 1.847%

• Prudential Monetary (PRU): 1.843%

• OneOK (OKE): 1.831%

• Edison Worldwide (EIX): 1.534%

• LyondellBasell Industries (LYB): 1.527%

• Basic Mills (GIS): 1.519%

• Kimberly-Clark (KMB): 1.513%

The sector tilt tells the identical story. DVY leans closely into regulated utilities (Dominion, Exelon, NextEra, DTE, AEP, Xcel, WEC and extra), regional banks (Huntington, Fifth Third, KeyCorp, U.S. Bancorp, Truist), vitality pipelines and majors (OneOK, Chevron, EOG, Exxon), and client staples (Altria, Philip Morris, Kimberly-Clark, Basic Mills). Large utility and telecom weights, mixed with a rotation again into worth names, have carried the fund increased.

The Palantir Absence

Palantir is confirmed absent from the portfolio. The NPORT submitting dated April 30, 2026 reveals zero shares of PLTR throughout DVY’s 104 positions.

The reason being structural. DVY’s index screens for dividend-paying equities, and Palantir has by no means paid a dividend. Alpha Vantage lists Palantir’s dividend per share and dividend yield as None, with no dividend or ex-dividend date on file. A inventory that pays nothing merely can’t enter a fund constructed round cash-return histories. This exclusion is definitional, and it’ll not flip on the following rebalance.

The valuation profile reinforces the purpose. Palantir trades at a trailing P/E of roughly 131 and a price-to-sales ratio of 53.54, effectively outdoors the worth and yield territory DVY targets.

The Distinction in Returns

Traders who assumed they wanted Palantir to maintain tempo with the market could also be stunned by the yr’s scoreboard. Palantir shares are down 27.26% yr to this point and a pair of.13% over the previous 12 months, even after a 20.54% weekly bounce. Over that very same one-year window, DVY quietly delivered 21.05%.

Funds that do maintain Palantir, particularly tech-heavy or momentum ETFs, have taken a special journey. DVY’s focus danger sits elsewhere: in rate-sensitive utilities, regional banks uncovered to credit score cycles, and tobacco and pharma names going through regulatory scrutiny. Traders get earnings and decrease valuation, however in addition they quit publicity to regardless of the subsequent AI-fueled rally seems to be like.

The Takeaway

DVY presents what it advertises: a diversified basket of established U.S. dividend payers, with the largest single place, Altria, sitting at simply 2.291% of web belongings. That construction has produced a stable trailing-year return with none assist from the market’s hottest ticker. Whether or not that trade-off suits is determined by why an investor is shopping for. Earnings seekers get a sturdy mandate; development chasers might want to look elsewhere.

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