While GE and Boeing are not members of that index, that does not mean industrial are not dependable dividend growers. The ProShares S&P 500 Aristocrats ETF (NYSEArca: NOBL), which tracks theS &P Dividend Aristocrats Index, allocates 12.3% of its weight to industrials, good for the ETF’s third-largest sector allocation. [Checking in With Dividend Aristocracy]
The SPDR S&P Dividend ETF (NYSEArca: SDY), which tracks the S&P High Yield Dividend Aristocrats Index, a high-yield counterpart to NOBL’s index, devotes 14.5% of its weight to industrial stocks. The industrial sector is also the third-largest in SDY, one of the largest U.S. dividend ETFs.
There is room for dividend growth among industrials. For example, XLI’s dividend yield is just 1.73%, or four basis points below the yield on the S&P 500.
At the end of the second quarter, the industrial sector’s dividend yield was slightly below its 10-year average while its trailing 12-month payout ratio was in-line with its 10-year average and below that of five other sectors, according to FactSet data.
Industrial Select Sector SPDR
