We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Dividend growers have outperformed non-payers with lower volatility since 1973, per Hartford Funds.
Aristocrats offer stable income, strong balance sheets and inflation resilience.
SDY, NOBL and PEY stand out for dividend growth and long-term wealth creation.
Dividend investing continues to be a favored strategy across market environments. While it may not generate explosive capital gains, it offers investors a reliable stream of income and a measure of stability during periods of uncertainty.
The appeal of dividend-focused investments lies in their ability to provide regular payouts while gaining exposure to established, financially sound companies that are less-volatile in nature. When equity market returns come under pressure, dividend-paying securities can help cushion portfolios.
With numerous dividend ETFs available, funds focused on Dividend Aristocrats may be particularly attractive in today's volatile market, which is caught in a web of high inflation and geopolitical risks. These companies have a long track record of consistently increasing dividends, making them a compelling choice for investors seeking both income and resilience.
Why Dividend Aristocrats?
Dividend aristocrats are blue-chip dividend-paying companies with a long history of increasing dividend payments year over year. These generally act as a hedge against economic uncertainty and provide downside protection by offering outsized payouts or sizable yields on a regular basis. Additionally, aristocrats tend to skew the portfolio to less volatile sectors and mature companies.
Additionally, these companies have a sustainable business model, a long track of profitability, rising cash flows, good liquidity, a strong balance sheet and some value characteristics. Further, a history of strong dividend growth indicates a likely hike in the future.
Power of Dividend Growth
Since 1973, companies that grew or initiated dividends have delivered higher returns with lower volatility. Since 1973, Dividend Growers & Initiators have seen average annualized returns of 10.22% with a Beta of 0.89. Dividend Payers have seen average annualized returns of 9.20% with a Beta of 0.94, per Hartford Funds.
Dividend Non-Payershave recorded average annualized returns of 4.21% with a Beta of 1.18. Equal-Weighted S&P 500 Index has added 7.74% returns with a Beta of 1.00, according to Hartford Funds’ research.
Historically, from 1940–2025, dividend income’s contribution to the total return of the S&P 500 Index averaged 33%, per the same source.
ETFs in Focus
As a result, these products provide a nice combination of annual dividend growth and capital appreciation opportunity and are mainly suitable for risk-averse, long-term investors. For them, we have highlighted some popular ETFs that could be excellent choices:
The underlying S&P High Yield Dividend Aristocrats Index measures the performance of the highest dividend yielding S&P Composite 1500 Index constituents that have followed a managed-dividends policy of consistently increasing dividends every year for at least 20 consecutive years. The fund charges 35 bps in fees and yields 2.47% annually (as of June 4, 2026).
The underlying S&P 500 Dividend Aristocrats Index targets companies that are currently members of the S&P 500, have increased dividend payments each year for at least 25 years & meet certain market capitalization & liquidity requirements. The fund charges 35 bps in fees and yields 2.10% annually.
The underlying OShares U.S. Quality Dividend Index measures the performance of publicly-listed large-capitalization and mid-capitalization dividend-paying issuers in the United States. The fund charges 48 bps in fees and yields 1.41% annually.
The underlying NASDAQ US Broad Dividend Achievers Index is designed to identify a diversified group of dividend-paying companies which have increased their annual dividend for 10 or more consecutive fiscal years. It charges 52 bps in fees and yields about 1.33% annually.
The underlying NASDAQ US Dividend Achievers 50 Index is comprised of 50 stocks selected principally on the basis of dividend yield and consistent growth in dividends. The fund charges 50 bps in fees and yields 4.46% annually,
The underlying S&P High Yield Dividend Aristocrats Screened Index measures the performance of constituents from the S&P High Yield Dividend Aristocrats Index that meet certain sustainability criteria. The fund charges 15 bps in fees and yields 2.99% annually.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Guide to Dividend Aristocrat ETF Investing
Key Takeaways
Dividend investing continues to be a favored strategy across market environments. While it may not generate explosive capital gains, it offers investors a reliable stream of income and a measure of stability during periods of uncertainty.
The appeal of dividend-focused investments lies in their ability to provide regular payouts while gaining exposure to established, financially sound companies that are less-volatile in nature. When equity market returns come under pressure, dividend-paying securities can help cushion portfolios.
With numerous dividend ETFs available, funds focused on Dividend Aristocrats may be particularly attractive in today's volatile market, which is caught in a web of high inflation and geopolitical risks. These companies have a long track record of consistently increasing dividends, making them a compelling choice for investors seeking both income and resilience.
Why Dividend Aristocrats?
Dividend aristocrats are blue-chip dividend-paying companies with a long history of increasing dividend payments year over year. These generally act as a hedge against economic uncertainty and provide downside protection by offering outsized payouts or sizable yields on a regular basis. Additionally, aristocrats tend to skew the portfolio to less volatile sectors and mature companies.
Additionally, these companies have a sustainable business model, a long track of profitability, rising cash flows, good liquidity, a strong balance sheet and some value characteristics. Further, a history of strong dividend growth indicates a likely hike in the future.
Power of Dividend Growth
Since 1973, companies that grew or initiated dividends have delivered higher returns with lower volatility. Since 1973, Dividend Growers & Initiators have seen average annualized returns of 10.22% with a Beta of 0.89. Dividend Payers have seen average annualized returns of 9.20% with a Beta of 0.94, per Hartford Funds.
Dividend Non-Payershave recorded average annualized returns of 4.21% with a Beta of 1.18. Equal-Weighted S&P 500 Index has added 7.74% returns with a Beta of 1.00, according to Hartford Funds’ research.
Historically, from 1940–2025, dividend income’s contribution to the total return of the S&P 500 Index averaged 33%, per the same source.
ETFs in Focus
As a result, these products provide a nice combination of annual dividend growth and capital appreciation opportunity and are mainly suitable for risk-averse, long-term investors. For them, we have highlighted some popular ETFs that could be excellent choices:
SPDR S&P Dividend ETF (SDY - Free Report)
The underlying S&P High Yield Dividend Aristocrats Index measures the performance of the highest dividend yielding S&P Composite 1500 Index constituents that have followed a managed-dividends policy of consistently increasing dividends every year for at least 20 consecutive years. The fund charges 35 bps in fees and yields 2.47% annually (as of June 4, 2026).
ProShares S&P 500 Dividend Aristocrats ETF (NOBL - Free Report)
The underlying S&P 500 Dividend Aristocrats Index targets companies that are currently members of the S&P 500, have increased dividend payments each year for at least 25 years & meet certain market capitalization & liquidity requirements. The fund charges 35 bps in fees and yields 2.10% annually.
O'shares FTSE US Quality Dividend ETF (OUSA - Free Report)
The underlying OShares U.S. Quality Dividend Index measures the performance of publicly-listed large-capitalization and mid-capitalization dividend-paying issuers in the United States. The fund charges 48 bps in fees and yields 1.41% annually.
Invesco Dividend Achievers ETF (PFM - Free Report)
The underlying NASDAQ US Broad Dividend Achievers Index is designed to identify a diversified group of dividend-paying companies which have increased their annual dividend for 10 or more consecutive fiscal years. It charges 52 bps in fees and yields about 1.33% annually.
Invesco High Yield Equity Dividend Achievers ETF (PEY - Free Report)
The underlying NASDAQ US Dividend Achievers 50 Index is comprised of 50 stocks selected principally on the basis of dividend yield and consistent growth in dividends. The fund charges 50 bps in fees and yields 4.46% annually,
Xtrackers S&P Dividend Aristocrats Screened ETF (SNPD - Free Report)
The underlying S&P High Yield Dividend Aristocrats Screened Index measures the performance of constituents from the S&P High Yield Dividend Aristocrats Index that meet certain sustainability criteria. The fund charges 15 bps in fees and yields 2.99% annually.