“Unlike many dividend indexes that focus solely on historic dividend growth or yield, the DIVCON indexes are engineered to track the performance of companies projected to grow or cut their dividends in the future,” according to Reality Shares. “Most importantly, by focusing on dividends and future dividend growth, the index constituents are biased toward higher quality.”
As of December 18, LEAD’s sector tilts include consumer discretionary 28.7%, industrials 28.3%, information technology 11.6%, consumer staples 11.3%, healthcare 8.6%, financials 5.7%, energy 2.9% and materials 2.8%.
Top components include Starbucks (NasdaqGS: SBUX) 3.0%, Broadcom (NasdaqGS: BRCM) 3.0%, Nike (NYSE: NKE) 3.0%, Visa (NYSE: V) 2.9% and Texas Instruments (NasdaqGS: TXN) 2.9%.
Looking ahead, investors may also want to watch out for Reality Shares’ DIVCON Dividend Defender ETF (DFND) and DIVCON Dividend Guard ETF (GARD), which both employ a type of long/short dividend equity strategy, next week.
Max Chen contributed to this article.