Plenty of dividend exchange traded funds are delivering for investors this year. Dividend growers provide an aspect of quality and growth since these firms have a long track record of raising dividends. Companies that have consistently raised dividends also exhibit stable balance sheets and consistent earnings growth.
Over the long-term, high-quality dividend-paying stock exchange traded funds could produce outperforming results. The iShares Core High Dividend ETF (NYSEArca: HDV) is one ETF that can position investors for years of consistent, dependable dividends.
SEE MORE: Watching High Dividend ETFs
HDV follows the Morningstar Dividend Yield Focus Index and the ETF’s other double-digit sector allocations are healthcare and utilities. In 2014, HDV became a member of the iShares core suite of ETFs and its addition to the iShares core suite came a dramatic fee reduction that took the ETF’s annual expense ratio to 0.12% from 0.4%.
U.S. dividend stocks have outperformed the S&P 500 over the past year as ultra-low bond yields and the ongoing low-rate environment pushed investors toward alternative income sources.
While high-yield dividend stocks have outperformed within the category, BlackRock analysis shows that high-dividend payers are vulnerable to higher rates. In comparison, dividend growers tend to perform well when the Federal Reserve gradually raises rates.