For investors seeking a reliable source of income and potential capital appreciation, dividend growth ETFs have become a popular choice. These exchange-traded funds focus on companies with a history of consistent dividend increases, providing the perfect blend of stability and long-term growth. In this article, we will introduce six outstanding dividend growth ETFs that are worth considering for your investment portfolio.
- Vanguard Dividend Appreciation ETF (VIG):
VIG tracks the NASDAQ US Dividend Achievers Select Index and focuses on U.S. stocks with a strong record of increasing dividends. Vanguard is known for its low-cost investment options, making VIG a top choice for those who want exposure to blue-chip companies committed to dividend growth.
- iShares Select Dividend ETF (DVY):
DVY aims to replicate the Dow Jones U.S. Select Dividend Index and includes high-yielding U.S. stocks with a consistent history of dividend payments. If you are an income-oriented investor, DVY offers an attractive option.
- Schwab U.S. Dividend Equity ETF (SCHD):
SCHD tracks the Dow Jones U.S. Dividend 100 Index, which selects companies based on quality and yield. It’s a well-balanced ETF for investors seeking a mix of dividend growth and capital appreciation.
- ProShares S&P 500 Dividend Aristocrats ETF (NOBL):
NOBL aims to match the S&P 500 Dividend Aristocrats Index, featuring S&P 500 companies that have raised their dividends for at least 25 consecutive years. This ETF provides exposure to some of the most reliable dividend growers.
- iShares International Select Dividend ETF (IDV):
For global diversification, IDV tracks the Dow Jones EPAC Select Dividend Index. It focuses on international companies with a solid track record of dividend payments, offering a unique investment opportunity.
- SPDR S&P Dividend ETF (SDY):
SDY aims to replicate the S&P High Yield Dividend Aristocrats Index and comprises companies from the S&P 1500 Composite Index that have consistently increased their dividends for at least 20 consecutive years. This ETF provides both income and potential for long-term growth.
Investing in dividend growth ETFs is a smart strategy to enhance your portfolio’s income potential and achieve long-term wealth accumulation. These six options offer various choices, including U.S. dividend aristocrats, international dividend payers, and companies with a proven history of increasing dividends. Before including these ETFs in your portfolio, conduct thorough research and consider your investment objectives to make an informed decision. These ETFs can be valuable additions to your investment toolbox, providing you with both income and the potential for long-term capital growth.