PFM is also chock full of industrial aristocrats, including 3M (NYSE: MMM), Dover (NYSE: DOV), Emerson Electric (NYSE: EMR), W.W. Grainger (NYSE: GWW) and Stanley Black & Decker (NYSE: SWK). Industrial stocks with dividend aristocrat status combine for another 5% of PFM’s weight.
PFM is home to just nine health care stocks, but six combining for nearly 8% of the ETF’s weight are dividend aristocrats. Eight consumer discretionary names representing over 6% of PFM’s weight are also dividend aristocrats.
So at this point, it is fair to say PFM’s accidental aristocrat status is justified, but income investors will want to know if the fund’s dividend growth is legitimate, though it should not be forgotten that the Dividend Achiever index family had an impressive year in 2013, including the NASDAQ US Broad Dividend Achievers Index. [Big Returns From These Dividend Indices]
PFM paid a dividend of roughly 33 cents a share in 2007 and in a sign that dividend growth can work in even in the roughest environments, the fund’s payout was slightly north of 34 cents in 2008, according to PowerShares data. However, 2009 and 2010 saw retrenchment in PFM’s payout. The 2010 dividend was barely above 27 cents a share. PFM’s payout rebounded to about 38 cents in 2012 before checking in at around 37 cents last year, according to PowerShares data.
PowerShares Dividend Achievers Portfolio
