XLC Dividend Yield 2026: State Street Communication Services Select Sector SPDR ETF

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Data last updated: Sep 06, 2026

Snapshot (as of Sep 06, 2026): State Street Communication Services Select Sector SPDR ETF (XLC) pays a $1.43 annual dividend, yielding 1.28% at $112.03/share. Next ex-dividend date 2026-06-22. Source: Yahoo Finance, aggregated by MerryDiv.

Dividend Yield: 1.28%

Annual Dividend: $1.43 per share

Ex-Dividend Date: 2026-06-22

Sector: Financial Services

Years of Dividend History: 9

About State Street Communication Services Select Sector SPDR ETF Dividend

The State Street Communication Services Select Sector SPDR ETF dividend reflects the income generated by a focused basket of S&P 500 communication services companies spanning telecom, media, entertainment, and interactive media. XLC currently yields 1.28%, with a trailing annual dividend rate of $1.4313 per share. The next ex-dividend date is June 22, 2026. With a beta of 0.85, XLC stock carries slightly less price volatility than the broader market, making it a fit for growth-and-income investors who want sector-specific exposure without amplified swings.

Dividend Safety

State Street Communication Services Select Sector SPDR ETF pays out dividends as a pass-through of income generated by its underlying holdings, a payout ratio classified as not applicable (fund/ETF). Because XLC distributes what its constituent companies pay rather than retaining earnings, the payout level is directly tied to the dividend behavior of S&P 500 communication services firms across telecom, media, and interactive media. State Street Communication Services Select Sector SPDR ETF dividend safety is therefore a function of the aggregate health of those underlying holdings, not a standalone corporate balance sheet. The most meaningful pressure point is sector concentration: a broad pullback in communication services dividends would flow directly through to XLC distributions.

State Street Communication Services Select Sector SPDR ETF (XLC) Dividend Growth Rate, CAGR, and History

State Street Communication Services Select Sector SPDR ETF dividend history shows a CAGR of 20.3% per year from 2019 to 2025. Per-share payments grew from $0.4370 in 2019 to $1.3272 in 2025 (2026 is a partial year and excluded from the growth calculation). The largest single-year jump in the window was 61.3% in 2024, which is exceptional by any measure. That said, the data also contains at least one year-over-year decline exceeding 5%, specifically 2022 dropping from $0.5730 to $0.5310, so the growth path has not been linear.

State Street Communication Services Select Sector SPDR ETF Dividend Growth Rate (CAGR)

Period	CAGR	From	To
3-Year	+35.7%	$0.53 (2022)	$1.33 (2025)
5-Year	+23.8%	$0.46 (2020)	$1.33 (2025)

Is State Street Communication Services Select Sector SPDR ETF a Good Dividend Stock?

XLC fits growth-and-income investors who prioritize dividend growth over current yield, particularly those seeking targeted exposure to the communication services segment of the S&P 500. The current yield is low (below 2%) at 1.28%, though that figure sits well above the 5-year average yield of 0.71%, which means the income profile has genuinely improved over time. The 20.3% annual CAGR from 2019 to 2025 is the defining characteristic here: the dividend has grown fast, but the starting yield is thin. An investor in State Street Communication Services Select Sector SPDR ETF gains sector-specific dividend growth at a pace few income vehicles match, and accepts a low current yield and year-to-year variability in exchange.

Recent State Street Communication Services Select Sector SPDR ETF Dividend Payments

Payment Date	Amount per Share
2026-06-22	$0.2838
2026-03-23	$0.3570
2025-12-22	$0.3758
2025-09-22	$0.4147
2025-06-23	$0.2488
2025-03-24	$0.2879
2024-12-23	$0.2544
2024-09-23	$0.2692
2024-06-24	$0.2243
2024-03-18	$0.2140

State Street Communication Services Select Sector SPDR ETF Annual Dividend History

Year	Total Dividends
2026	$0.6407
2025	$1.3272
2024	$0.9620
2023	$0.5964
2022	$0.5310

Related Financial Services Dividend Stocks

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Frequently Asked Questions

Does XLC pay dividends?

Yes, State Street Communication Services Select Sector SPDR ETF (XLC) pays a $1.43 annual dividend per share, yielding 1.28%.

What is State Street Communication Services Select Sector SPDR ETF's current dividend yield?

XLC's current dividend yield is 1.28%, based on a trailing annual rate of $1.4313 per share. That yield is nearly double the fund's 5-year average yield of 0.71%, reflecting substantial per-share dividend growth over the period.

Has State Street Communication Services Select Sector SPDR ETF ever cut its dividend?

Yes. The annual dividend declined from $0.5730 in 2021 to $0.5310 in 2022, a year-over-year drop of roughly 7.3%. Outside that period, the available history from 2019 to 2025 shows growth in every other complete year.

How fast has State Street Communication Services Select Sector SPDR ETF grown its dividend?

XLC has grown its dividend at a compound annual growth rate (CAGR) of 20.3% per year from 2019 to 2025. Per-share payments rose from $0.4370 to $1.3272 over that window, including a 61.3% single-year jump in 2024.

Is State Street Communication Services Select Sector SPDR ETF a good dividend stock for income investors?

XLC's 1.28% yield is low (below 2%), so it does not suit investors prioritizing current income. Its defining characteristic is dividend growth: a 20.3% annual CAGR from 2019 to 2025 makes it more relevant to growth-and-income investors than pure income seekers.

Is State Street Communication Services Select Sector SPDR ETF dividend safe?

Payout ratio is not applicable (fund/ETF) for XLC, so traditional coverage metrics do not apply. The dividend reflects what the underlying S&P 500 communication services holdings pay out, meaning any broad sector-level dividend reduction would directly affect XLC distributions.

What type of investor is State Street Communication Services Select Sector SPDR ETF best suited for?

XLC suits growth-and-income investors who prioritize dividend growth over current yield. The 20.3% annual CAGR from 2019 to 2025 is the draw; the 1.28% current yield means investors focused on immediate income will find the payout thin.

How does State Street Communication Services Select Sector SPDR ETF compare to its own historical yield?

The current XLC dividend yield of 1.28% is well above the fund's 5-year average yield of 0.71%. That gap reflects how significantly per-share dividends have grown, with annual payments rising from $0.4370 in 2019 to $1.3272 in 2025.

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