Additionally, 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). NOBL has a 1.64% 12-month yield and a 0.35% expense ratio.
Fredrickson is also looking beyond utilities, which have acted as a traditional dividend-generating equity option, after the sector posted large returns over the past year. VIG and SCHD both show a small 0.6% tilt toward utilities, while NOBL has a 1.9% in utility stocks and SDY has a larger 10.5% weight in the sector. [Utilities Sector ETFs Look Expensive]
For more information on dividend stocks, visit our dividend ETFs category.
Max Chen contributed to this article. Tom Lydon’s clients own shares of SCHD.