While there is ongoing debate regarding the superior method of shareholder compensation – buybacks or dividends – there is no denying dividend growth stocks have been less volatile while offering superior returns than those that do not grow dividends over the previous three decades. [Not Your Ordinary Dividend ETF]
“There is no stronger signal a company can send to the investing public than a dividend hike. When you commit yourself to parting with a significant chunk of your cash, you had better be certain that your business prospects are good. Because nothing is more devastating to investor morale than seeing a dividend cut,” adds Sizemore.
At the end of last year, SYLD’s largest sector weight was 23% to financial services with 16% each to technology and consumer discretionary, the two largest sectors for share repurchases. The ETF, which charge 0.59% per year, had $212.1 million in assets at the end of 2014.
Cambria Shareholder Yield ETF
