Although small-cap indexes remain at the low end of the dividend yield totem pole, more than half of IJR’s holdings are dividend payers and there is room for steady payout growth as “182 payers have a dividend rate less than 50% of their 12 month net GAAP income, with 235 being less than 75%,” according to S&P Dow Jones Indices. [Small-Cap Dividends Climb]
“Starting with recent growth in SmallCap payers, and the history of payers to continue to pay and increase, SmallCaps issues appear to be trending up, and if the trend continues, eventually, the index level characterizes will change,” said S&P Dow Jones Indices senior index analyst Howard Silverblatt in a note.
DGRS pays a monthly dividend and can be traded commission-free on the Schwab ETF OneSource platform.
WisdomTree U.S SmallCap Dividend Growth Fund
Todd Shriber owns shares of DGRS.