Other well-known U.S. dividend ETFs include the The SPDR S&P Dividend ETF (NYSEArca: SDY) and the ProShares S&P 500 Aristocrats ETF (NYSEArca: NOBL). However, those ETFs differ from DVY by requiring member firms to meet minimum dividend increase streaks of 20 year and 25 years, respectively.
Related: Best of Both Worlds With This Dividend ETF
Dividend growth as a means of trumping inflation could and arguably should serve to highlight the advantages of the ETFs that focus on dividend growth stocks. That group is comprised of well-established ETFs that emphasize dividend increase streaks as well as a new breed of funds that look for sectors chock full of stocks that have the potential to be future sources of dividend growth.
“The high dividend strategy remains a powerful technique in a period of low interest rates since investors in dividend champions may be materially less willing to sell their holdings when the market is declining. This strategy reduces the volatility of the portfolio during weakness in the general market,” adds Seeking Alpha on DVY.
iShares Select Dividend ETF
Tom Lydon’s clients own shares of DVY, NOBL and SDY.