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Dissecting Dividend Growth ETFs

Benzinga.com
0 Comments| May 20, 2014

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Dividend growth ETFs have become increasingly popular among equity income investors.

These ETFs seek to capture companies that have a history of increasing their annual dividend payments over time.

This return of profits strategy typically represents a company with a sound capital structure, that is focused on returning value to its shareholders. By investing in these stocks, investors are able to raise the probability that future dividend increases will keep pace with inflation as well.

Related: 3 ETFs To Profit From The AT&T Purchase Of DirecTV

The most prominent ETF of the dividend growth classification is the Vanguard Dividend Appreciation ETF (NYSE: VIG). This fund tracks the NASDAQ US Dividend Achievers Select Index and has over $19 billion ...

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