Additionally, the Schwab US Dividend Equity ETF (NYSEArca: SCHD) follows companies with consistent dividend payouts for at least 10 consecutive years. The SPDR S&P Dividend ETF (NYSEArca: SDY) underlying index mandates constituent firms have a minimum dividend increase streak of 20 years for inclusion. The S&P 500 Dividend Aristocrats Index, which only includes companies that have increased their dividends for at least 25 consecutive years, serves as the benchmark for the increasingly popular ProShares S&P 500 Aristocrats ETF (NYSEArca: NOBL). [Quality Dividend ETFs with Consistent Yields]
The buyback and dividend ETF plays have outperformed broader benchmarks. Over the past year, PKW increased 17.6%, TTFS advanced 18.7% and NOBL gained 19.7%. In contrast, the SPDR S&P 500 ETF (NYSEArca: SPY) rose 16.3% over the past year.
For more information on dividend stocks, visit our dividend ETFs category.
Max Chen contributed to this article.
Full disclosure: Tom Lydon’s clients own shares of TTFS, SCHD and SPY.