Related: Dividend Growth ETFs to Survive Volatile Conditions

Many FDRR holdings also offer dividend growth potential or have already displayed impressive track records of payout 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.

FDRR charges 0.29% per year, or $29 on a $10,000 investment. That puts it at the lower end of annual fees on U.S. large-cap smart beta strategies. Plus, Fidelity clients can trade FDRR without commissions on the firm’s commission-free ETF platform.

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