Investors may also consider consistent dividend growers as a way to gain exposure to this group of quality companies as dividend growers and high quality stocks share a number of similar characteristics.
“Due to the index screen for 20 years of consecutively raising dividends, stocks included in the Index have both capital growth and dividend income characteristics, as opposed to stocks that are pure yield,” said State Street regarding SDY’s index methodology.
SDY looks appealing on a technical basis as well.
The ETF “climbed past a 90.02 flat-base buy point intraday Friday, before settling just below the entry. On Monday, it closed fractionally lower. The current three-month pattern began forming two weeks after a February breakout from a flat base. It advanced 2% between the two bases,” reports Investor’s Business Daily.
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