HDV: A Dividend ETF for the Long Haul

Plenty of dividend exchange traded funds are delivering for investors this year. Dividend growers provide an aspect of quality and growth since these firms have a long track record of raising dividends. Companies that have consistently raised dividends also exhibit stable balance sheets and consistent earnings growth.

Over the long-term, high-quality dividend-paying stock exchange traded funds could produce outperforming results. The iShares Core High Dividend ETF (NYSEArca: HDV) is one ETF that can position investors for years of consistent, dependable dividends.

SEE MORE: Watching High Dividend ETFs

HDV follows the Morningstar Dividend Yield Focus Index and the ETF’s other double-digit sector allocations are healthcare and utilities. In 2014, HDV became a member of the iShares core suite of ETFs and its addition to the iShares core suite came a dramatic fee reduction that took the ETF’s annual expense ratio to 0.12% from 0.4%.


U.S. dividend stocks have outperformed the S&P 500 over the past year as ultra-low bond yields and the ongoing low-rate environment pushed investors toward alternative income sources.

While high-yield dividend stocks have outperformed within the category, BlackRock analysis shows that high-dividend payers are vulnerable to higher rates. In comparison, dividend growers tend to perform well when the Federal Reserve gradually raises rates.