Over the past 40 years, companies that boost payouts have proven to be less volatile than their counterparts that cut, suspended or did not initiate or raise dividends.
Dividend growth as a means of trumping inflation could and arguably should serve to highlight the advantages of the ETFs that focus on dividend growth stocks, such as SDOG. That group is comprised of well-established ETFs that emphasize dividend increase streaks as well as a new breed of funds that look for sectors chock full of stocks that have the potential to be future sources of dividend growth.
SDOG “has a three-year annual return of 12.91%, better than 98% of its peers in Morningstar’s large-cap value category. It also did very well in 2013, 2014, and 2016, finishing in the top quarter of its category in each of those years. Its only off year was 2015, when it lost 3.18%,” according to Barron’s.
For more information on dividend stocks, visit our dividend ETFs category.
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