Top Dividend ETFs to Consider for Long-term Investment

Investors seeking steady income may benefit from dividend ETFs. This report highlights three notable options, including the Vanguard Dividend Appreciation ETF, which shows potential for outperforming its peers.

Date: 26-01-2025

AI Rating: 7

Dividend Growth ETFs Highlighted.
The report presents three ETFs focused on dividend growth that could attract investor interest. Both the Vanguard Dividend Appreciation ETF and the ProShares S&P Midcap 400 Dividend Aristocrats® ETF showcase compelling growth strategies within the dividend space.

**Vanguard Dividend Appreciation ETF**: This ETF, built to mirror the S&P U.S. Dividend Growers Index, requires only 10 years of dividend growth, which allows it to filter out high-yield stocks that may pose risks. Its current trailing yield is reported at 1.7%, which is lower than the Dividend Aristocrats’ 2.5%, yet it compensates with impressive dividend growth and capital gains, indicating strong performance potential.

**ProShares S&P Midcap 400 Dividend Aristocrats® ETF**: This fund focuses on mid-cap stocks with 15 consecutive years of dividend increases. Mid-caps are generally seen as having better long-term performance, providing a good avenue for growth. This ETF includes quality stocks and offers managed access to them, which may attract investors looking for reliable growth.

**Invesco S&P 500 High Dividend Growers ETF**: Newly launched and with a small asset base, this ETF targets 100 S&P stocks with the highest forecasted dividend yield growth, making it unique among dividend-focused funds. It holds an impressive trailing dividend yield of over 3%, attracting attention for its potential upside.

No specific metrics regarding earnings per share (EPS), revenue growth, net income, profit margins, free cash flow, or return on equity were provided in the report. However, the emphasis on strong, consistent dividend growth suggests healthy corporate performance among the stocks included in these ETFs, appealing to income-focused investors.

Stocks: NOBL VIG REGL DIVG