Bonds Not Cutting It Look to Dividend Growth ETFs for 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 1.78% 12-month yield.

The WisdomTree U.S. Quality Dividend Growth Fund (NasdaqGM: DGRW) includes companies with high long-term earnings-growth forecasts for the next three to five years and weights components based on the value of dividends they are expected to pay over the next year. DGRW has a 2.18% 12-month yield.

SEE MORE: Quality Dividend ETFs with Sustainable Yields

While these dividend growth ETFs may not be generating any stellar high yields, they do provide consistency and a reliable source of growth.

“The same way a bond investor seeing a 7% or 8% yield should be asking questions about whether payments can be made, if your yield is too high, either the dividend is at risk or the stock price has just fallen,” Todd Rosenbluth, director of mutual fund and ETF research at S&P Global Market Intelligence, told InvestmentNews.

For more information on dividend stocks, visit our dividend ETFs category.