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. 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.
Companies with a record of raising dividends are more attractive than usual since they issue their dividends cautiously. These dividend payers typically include higher quality companies that are more cautious when raising dividends since they would do so without stretching their balance sheets.
“Like rival low-volatility strategies, this VictoryShares ETF is heavily allocated to the utilities and consumer staples as those groups combine for about 38% of CDL’s roster. Financial services and consumer discretionary stocks combine for approximately 28 percent,” according to InvestorPlace.
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