The $12.6 billion SDY tracks the S&P High Yield Dividend Aristocrats Index, which requires a minimum dividend increase streak of 20 years for inclusion. However, SDY is not the only ETF benefiting from the Dividend Aristocrats methodology.
The ProShares S&P 500 Aristocrats ETF (NYSEArca: NOBL) is another new member of the ETF all-time high club. NOBL, which has a 30-day SEC yield of 1.94%, tracks the S&P Dividend Aristocrats Index. That index requires dividend increase streaks of at least 25 years for admission.
The SPDR S&P Global Dividend ETF (NYSEArca: WDIV) is now higher by nearly 10% over the past 90 days. WDIV tracks a global version of the S&P Dividend Aristocrats Index.
“The index methodology aims to achieve a balance between high dividend yield and dividend sustainability and growth. It incorporates criteria on dividend payout ratio and maximum indicated dividend yield, to exclude companies whose future dividend payout may be considered potentially less sustainable. The index is weighted by indicated annual dividend yield to tilt the portfolio towards companies with higher dividend yields,” according to S&P Dow Jones Indices.
WDIV is winning a multiple fronts, including being overweight utilities at 26.5% and exposure to 10 European countries. [A Top-Flight Global Dividend ETF]
WisdomTree MidCap Dividend Fund
Tom Lydon’s clients own shares of SCHD.