As companies find it harder to grow earnings in a slowing economy, exchange traded fund investors should focus on high-quality names to ride out this low growth environment.
On the upcoming webcast, Dividend Growers: High Quality Companies for a Low Growth Environment, Sam Stovall, Managing Director and U.S. Equity Strategist at S&P Global Market Intelligence, Simeon Hyman, Head of Investment Strategy at ProShares, and Kieran Kirwan, Director of Investment Strategy at ProShares, look to high-quality companies and dividend growth opportunities that can help investors participate in any upside while diminishing volatility in a low growth environment.
For instance, the ProShares Russell 2000 Dividend Growers ETF (NYSEArca: SMDV) tracks the Russell 2000 Dividend Growth Index. The underlying index includes small-cap firms with dividend increase streaks of at least a decade. SMDV shows a 2.06% 30-day SEC yield.
The ProShares S&P MidCap 400 Dividend Aristocrats ETF (NYSEArca: REGL) tracks the S&P MidCap Dividend Aristocrats Index, which only includes dividend paying companies that have raised payouts for 15 consecutive years. REGL has a 1.82% 30-day SEC yield.
Additionally, the ProShares S&P 500 Aristocrats ETF (NYSEArca: NOBL) follows the S&P Dividend Aristocrats Index, which is comprised of S&P 500 companies that have increased their dividends for at least 25 consecutive years. NOBL has a 2.09% 30-day SEC yield.
The three dividend growth ETFs may be a better way for investors to capture the three market capitalization asset categories.