Other dividend growth options among ETFs include the Schwab US Dividend Equity ETF (NYSEArca: SCHD) and the ProShares S&P 500 Aristocrats ETF (NYSEArca: NOBL). SCHD’s holdings have dividend increase streaks of at least 10 years while NOBL is even more stringent, requiring payout increases spanning at least 25 consecutive years.

“A second reason I like SDY has to do with its individual characteristics, compared to other dividend funds, as opposed to macroeconomic forces. To start with, SDY is heavily exposed to the financials sector, with almost 23% of the fund weighted towards that sector. The reason I view this as a positive is that once rates do start to rise, it will provide a nice hedge for the fund, as financials such as banks and insurance companies tend to do better in a rising rate environment,” adds Seeking Alpha.

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SPDR S&P Dividend ETF

Tom Lydon’s clients own shares of SDY, SCHD and NOBL.