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.

SDY allocates 30.5% of its weight industrial and consumer staples stocks with financial services and utilities names combining for another 27%.

“The dividend aristocrat strategy has historically worked very well for investors over the long term and this fund is no exception. Over the past 10 years, the S&P High Yield Dividend Aristocrats Index has outperformed the S&P 1500 by nearly 70 basis points annually and has topped the S&P 500 by even more,” according to ETF Daily News.

For more information on dividend stocks, visit our dividend ETFs category.