ETF investors can also target U.S. dividend growers through a number of options. For instance, the iShares Core Dividend Growth ETF (NYSEArca: DGRO) specifically targets companies that pay a qualified dividend, must have at least five years of uninterrupted annual dividend growth and their earnings payout ratio must be less than 75%. DGRO has a 2.35% 12-month yield.
Alternatively, the Vanguard Dividend Appreciation ETF (NYSEArca: VIG) tracks U.S. stocks that have increased dividends on a regular basis for at least 10 consecutive years and has a 2.16% 12-month yield. The Schwab US Dividend Equity ETF (NYSEArca: SCHD) includes 100 stocks based on strong fundamentals, dividend yields and consistent dividend payouts for at least 10 consecutive years, and it has a 2.90% 12-month yield. The SPDR S&P Dividend ETF (NYSEArca: SDY) holds firms that have a minimum dividend increase streak of 20 years for inclusion and shows a 2.39% 12-month yield. The ProShares S&P 500 Aristocrats ETF (NYSEArca: NOBL) only includes companies that have increased their dividends for at least 25 consecutive years and offers a 1.89% 12-month yield.
Related: Quality Dividend ETFs with Sustainable Yields
Investors can also take the dividend growth theme to overseas markets with something like the recently launched iShares International Dividend Growth ETF (BATS: IGRO).
“We see attractive dividend-growth opportunities in global pharmaceuticals, international telecoms, emerging market (EM) infrastructure and selected global information technology companies,” Turnill added.
For more information on dividend stocks, visit our dividend ETFs category.