Rising Dividends: SPDR S&P Dividend ETF
10/31 Yield: 3.16%
Expense Ratio: 0.35%
While a 9% yield from a stock is nice now, if the absolute payout (in dollar terms) is the same 30 years from now as it is today on the initial investment, owners have a right to be upset. The solution? A fund that makes a point of raising dividends over time, just like their underlying stocks do.
To be fair, the per-share dividend payout hasn’t grown tremendously since the ETF’s inception in 2006. But the payout has been far more reliable than the market’s overall performance for the same period. (In other words, it’s still your best bet for dividend growth over a long stretch of time.)
As a close second in the category, consider the Vanguard Dividend Appreciation ETF (NYSE:VIG). Although the current yield is anemic at 2.12%, VIG actually has demonstrated a little bit of measurable dividend growth since 2006.
See also: 25 Most Dangerous Funds to Own Now