2020 promises to be complex, with an upcoming election, slowing corporate earnings, and an aging bull market. Despite strong returns, earnings growth was flat, which has pushed valuations higher. Where can investors look for opportunities in this market? Small- and mid-cap equities—especially the quality ones that consistently grow their dividends—have shown resiliency in tough markets and may be worthy of consideration.
In the upcoming webcast, Dividend Growth Strategies: A Big Idea for Small and Mid Caps, Simeon Hyman, Global Investment Strategist, ProShares; Kieran Kirwan, Director, Investment Strategy, ProShares; and Rolf Agather, Managing Director of North American Research, FTSE Russell, will discuss how quality dividend growth strategies in small and mid caps are well positioned for today’s market environment.
ProShares offers a suite of dividend growth-focused ETF strategies to help investors gain exposure to steady dividend growing companies. For example, investors can look to the ProShares Russell 2000 Dividend Growers ETF (SMDV) and the ProShares S&P MidCap 400 Dividend Aristocrats ETF (REGL) for quality dividend growers in the small- and mid-cap categories, respectively. The mid-cap Dividend Aristocrats Index, though, only requires 15 consecutive years of increased dividends for inclusion. SMDV, a dividend spin on the Russell 2000, the benchmark U.S. small-cap index, tracks the Russell 2000 Dividend Growth Index, which includes small-cap firms with dividend increase streaks of at least a decade.
Additionally, ProShares recently added to its burgeoning lineup of dividend growth ETFs with the broad ProShares Russell U.S. Dividend Growers ETF (TMDV), which takes components out of the widely observed Russell 3000 that have shown 35 years of consecutive dividend growth.
ProShares argued that dividend growth is a hallmark of quality, and these companies provide the best level of dividend growth, with a legacy of stability and strength, demonstrating a history of weathering market turbulence.
Financial Advisors who are interested in learning more about dividend growth strategies can register for the Tuesday, February 4 webcast here.