Markets have delivered complexity this year, to say the least. However, dividend growth companies—which tend to have quality characteristics like strong credit ratings—have demonstrated resiliency. This ability to endure in challenging markets may make dividend growth strategies advantageous in today’s markets.
In the upcoming webcast, The Dividend Growth Advantage: Strategies for Today’s Markets, Craig Lazzara, Managing Director, Global Head of Index investment Strategy, S&P Dow Jones Indices; Kieran Kirwan, Director, Investment Strategy, ProShares; and Simeon Hyman, Global Investment Strategist, ProShares, will take a deeper look at how dividend growers are faring now.
The ProShares S&P 500 Aristocrats ETF (NOBL), which tracks the S&P 500 Dividend Aristocrats Index, is ProShares’ flagship dividend growth ETF strategy that targets the cream of the crop, only selecting components that have increased their dividends for at least 25 consecutive years. Consequently, investors are left with a portfolio of high-quality, sustainable dividend payers as opposed to more high-yield focused funds that may contain companies in more precarious financial positions.
ProShares also offers dividend growth ETFs that focus on other market segments, like the ProShares Russell 2000 Dividend Growers ETF (SMDV) and the ProShares S&P MidCap 400 Dividend Aristocrats ETF (REGL) for those seeking 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.
Investors can diversify into international markets while tracking similar dividend growth strategies. For instance, the ProShares MSCI EAFE Dividend Growers ETF (EFAD) tracks developed market Europe, Australasia, and Far East companies that exhibit a minimum dividend increase streak of 10 years.
The ProShares MSCI Europe Dividend Growers ETF (EUDV) tracks the performance of the MSCI Europe Dividend Masters Index, which consists of at least 25 European companies that have consistently increased their dividends for at least ten consecutive years.
The ProShares MSCI Emerging Markets Dividend Growers ETF (EMDV) follows the MSCI Emerging Markets Dividend Masters Index, which targets MSCI Emerging Market components that have increased dividend payments each year for at least seven consecutive years.
Additionally, ProShares more recently added to its burgeoning lineup of dividend growth ETFs with the launches of two funds – the ProShares Russell U.S. Dividend Growers ETF (TMDV) and the ProShares S&P Technology Dividend Aristocrats ETF (TDV).
Financial advisors who are interested in learning more about the benefits of a dividend growth strategy can register for the Thursday, July 9 webcast here.