Dividend growth stocks are public companies that have shown a track record of successive year-over-year increases in their dividend payments to shareholders. They represent an attractive way for income investors to augment and further diversify their portfolios away from a strict high-yield focus.
One of the easiest ways to own this group is through a low-cost and liquid exchange-traded fund. If you’ve been around the exchange-traded fund space for a while, you have probably heard of the Vanguard Dividend Appreciation ETF (NYSEARCA:VIG) or the ProShares S&P 500 Dividend Aristocrats ETF (BATS:NOBL).
Both funds own a basket of stocks with dividend growth characteristics and have proven to be sound investment vehicles in their own ways. Yet, as the ETF world continually broadens and innovates, there have been interesting advancements in this segment that some investors may not have taken notice of yet.
Below are three funds that continue to push the bar in terms of their portfolio exposure, cost and overall value proposition for investors.