9 ETFs That Screen for Dividend Growth
When it comes to dividend-oriented ETFs, advisors have many choices. But if you are looking for a domestic portfolio of dividend growth stocks -- one that includes only stocks that have posted higher shareholder payments for a specific number of years -- your choices shrink to a handful.
The requisite number of years of rising dividends varies among ETFs, from five to 25, depending on the rules of the underlying index. The longer a company has increased its dividend, the more wedded it is to that policy -- but at the other end of the spectrum, dividend newbies are more likely to provide hefty increases in the early years of dividend payments.
So how should you choose an ETF? Here are returns, expense ratios and other data for the available domestic dividend growth ETFs -- including three new ETFs based on new indexes from Morningstar, Russell, and S&P Dow Jones. Products are sorted by the number of years of higher payments required, in ascending order; data is from Morningstar and fund websites as of Feb. 27. Three- and five- year returns are annualized. Click through the slideshow, or visit a one-page version here. -- Joseph Lisanti