Investors have utilized exchange traded funds that target dividend growth strategies to potentially enhance a U.S. stock portfolio’s returns. With more looking to overseas markets, investors can also utilize ETF dividend growth strategies that track international stocks as well.
On the upcoming webcast, Exporting Your Dividend Strategy: Dividend Growth Investing in International Markets, Simeon Hyman, head of investment strategy at ProShares, and Kieran Kirwan, director of investment strategy at ProShares, go over the dividend growth strategy and ETF options to track both domestic and international markets.
For instance, the ProShares S&P 500 Aristocrats ETF (NYSEArca: NOBL), which includes a group of dividend aristocrats or companies that have consecutively raised dividends for at least 25 years, has been a popular play for income investors. NOBL has a 1.90% 12-month yield.
Many investors have included dividend strategies into their portfolios to enhance overall returns.
“Dividend-paying stocks have outperformed over the long haul,” according to Morningstar analyst Michael Rawson. “Since 1927, stocks that pay a dividend have beaten non-dividend-paying stocks by about 1.8% annualized.”
Earlier this year, ProShares expanded its line of dividend grower ETFs, launching the the ProShares Russell 2000 Dividend Growers ETF (NYSEArca: SMDV) and the ProShares S&P MidCap 400 Dividend Aristocrats ETF (NYSEArca: REGL). [ProShares Doubles Dividend Growth ETF Lineup]
Like, NOBL, the ProShares S&P MidCap 400 Dividend Aristocrats ETF tracks a dividend aristocrats index. The midcap dividend aristocrats index, though, only requires 15 consecutive years of increased dividends for inclusion.
The ProShares Russell 2000 Dividend Growers ETF, a dividend spin on the Russell 2000, the benchmark U.S. small-cap index, tracks the Russell 2000 Dividend Growth Index. That index includes small-cap firms with dividend increase streaks of at least a decade. Index constituents are screened for liquidity and dividend status, then selected and equal weighted subject to a maximum sector weight of 30%.
Investors can also diversify into international markets while tracking similar dividend growth strategies. For instance, the ProShares MSCI EAFE Dividend Growers ETF (NYSEArca: EFAD) tracks developed market Europe, Australasia and Far East companies that exhibit a minimum dividend increase streak of 10 years. EFAD has a 1.69% 12-month yield.
More recently, ProShares came out with the targeted ProShares MSCI Europe Dividend Growers ETF (NYSEArca: EUDV) for exposure to European dividend stock exposure. EUDV tries to reflect the performance of the MSCI Europe Dividend Masters Index, which consists of at least 25 European companies that have consistently increased their dividends for at least 10 consecutive years. The underlying index shows a 3.07% dividend yield. [A New Europe ETF That Focuses on Quality, Dividend Payers]
Financial advisors who are interested in learning more about dividend strategies can register for the Tuesday, September 22 webcast here.