Core Insights - Historical data indicates that dividend growers and initiators in the S&P 500 have delivered significantly higher total returns (10.2% annualized) compared to companies that did not increase dividends (6.8%) or those that do not pay dividends (4.3%) [1] ETF Options for Dividend Growth - The Schwab U.S. Dividend Equity ETF (SCHD) tracks the Dow Jones U.S. Dividend 100 Index, focusing on 100 high-yielding dividend stocks with consistent dividend payment records, achieving a trailing 12-month dividend yield of 3.3%, nearly triple that of the S&P 500 [3][4] - The iShares Core Dividend Growth ETF (DGRO) screens companies with at least five consecutive years of dividend increases, holding nearly 400 stocks, and has delivered an annualized total return of at least 11% since its inception in 2014 [7][8] - The Vanguard Dividend Appreciation ETF (VIG) requires companies to have increased dividends for at least 10 consecutive years, providing broad diversification with over 335 qualifying companies, and has delivered an annualized total return of more than 10% since its inception in 2006 [9][10] Performance of Dividend Growth ETFs - SCHD has delivered an annualized total return of over 11% across various time frames, including since its inception in 2011, with a total return of 13.3% [6] - DGRO has also achieved at least an 11% annualized total return over the past one-, three-, five-, and ten-year periods [8] - VIG has shown strong performance with an annualized total return of more than 10% since its inception in 2006 [10] Investment Strategy - SCHD, DGRO, and VIG focus on high-quality dividend growth stocks, a strategy that has historically provided strong returns for investors, suggesting continued potential for future performance [11]
History Says You'll Want to Buy 1 of These Top ETFs and Never Look Back
The Motley Fool·2026-03-29 16:45