The dividend investment theme has been outperforming this year as value stocks finally have their day in the sun, and yield-generating exchange traded funds that track smaller companies are leading the charge.
On the upcoming webcast, Dividend Growth: Compelling Opportunities Beyond Large Caps, Simeon Hyman, Head of Investment Strategy at ProShares, Kieran Kirwan, Director of Investment Strategy at ProShares, and Corey Hoffstein, CIO of Newfound Research, will discuss compelling opportunities in the dividend strategies that track U.S. mid- and small-cap stocks.
Dividend investors have many dividend growth ETF options to track various asset categories. For instance, investors can take a look at the ProShares Russell 2000 Dividend Growers ETF (NYSEArca: SMDV) and the ProShares S&P MidCap 400 Dividend Aristocrats ETF (NYSEArca: REGL) to augment their large-cap positions.
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. The underlying 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 have typically steered toward the dividend investment strategy as a means to generate enhanced total returns. Additionally, among dividend-paying stocks, dividend growers are seen as an elite group that have a long history of increasing yields.
[related_stories]SMDV shows a 1.78% 12-month yield and REGL has a 1.65% 12-month yield.
In recent years, these companies that have consistently grew their dividends year-over-year have outperformed those that have not. On top of the dividend growth strategy’s attractive performance record, small- and mid-caps have been leading the recent market rebound. Year-to-date, REGL increased 12.2% and SMDV rose 8.9%, whereas the S&P 500 gained 1.1%.
ProShares Russell 2000 Dividend Growers ETF
Financial advisors who are interested in learning more about dividend investments can register for the Wednesday, March 31 webcast here.