An Alternative Dividend Growth ETF Strategy

Income-minded investors can turn to an alternative dividend exchange traded fund strategy that analyzes the probability of future dividend growth as a way to focus on more financially sound companies.

On an upcoming webcast this Thursday, Why Dividend Growth Strategies Continue to Rally, Eric R. Ervin, Co-Founder and CEO of Reality Shares, and Kenny Polcari, Managing Director of O’Neil Securities, will describe a more forward-looking dividend strategy that screens for a company’s financial health and likelihood of future dividend growth.

Specifically, Reality Shares has a suite of ETFs that focus on U.S. companies expected to raise dividends ahead, including the Reality Shares DIVCON Leaders Dividend ETF (BATS: LEAD), Reality Shares DIVCON Dividend Defender ETF (BATS: DFND) and Reality Shares DIVCON Dividend Guard ETF (BATS: GARD).

The DIVCON ETF suite tracks companies based on the dividend growth of the broad market, and also those stocks most likely to increase their dividends while avoiding and even sometimes capitalizing on those stocks more likely to reduce dividends.

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Specifically, LEAD will try to reflect the performance of the Reality Shares DIVCON Leaders Dividend Index, which is comprised of high-quality large-cap U.S. companies with the highest probability of increasing dividends within a year, based on Reality Shares’ proprietary DIVCON dividend health scoring system.