Dow components Coca-Cola (NYSE:
), Procter & Gamble (NYSE:
) and 3M (NYSE:
) share something in common. And no, it is not just the fact that
all three make familiar brands used everyday by millions of
people all over the world.
That trio, and plenty of other blue chip stocks, have lengthy
streaks of increasing their dividend. P&G has raised its
dividend every year since 1957. Minnesota-based 3M has done so
every year since 1959. Coca-Cola's dividend increase streak is
now at almost 50 years.
These are the type of dividend increases investors can set
their clocks by and that is why they love these types of stocks.
Finding dividend stocks is not hard. These days, neither is
a plethora of dividend ETFs
The question dividend growth hunters might be asking is can
ETFs dividend growth on par with single stocks. With the
following funds, the answer is a resounding "yes."
SPDR S&P Pharmaceuticals ETF (NYSE:
Given the dividend reputation of the pharmaceuticals sector, the
appearance of XPH on this list is not surprising. In the essence
of fairness, both sides of the story need to be told. XPH only
yields 1.55 percent, an amount that investors can easily surpass
with any number of familiar pharma names.
Still, XPH's dividend growth has been noteworthy. The ETF's
distribution for 2007 was just under $0.35 per share. This year,
three quarterly payments have been made, combing for more than
$0.82 a share. On top of that, XPH is up 16.6 percent
iShares Dow Jones U.S. Telecommunications Sector Index
As is the case with XPH, the iShares Dow Jones U.S.
Telecommunications Sector Index Fund tracks a sector known for
being friendly to income investors. Dow components AT&T
) and Verizon (NYSE:
) combine for over 24 percent of IYZ's weight and those two
stocks have impressive streaks of boosted dividends as well.
IYZ's trailing 12-month yield of 2.48 percent is certainly
better than XPH's, but it is also well below what an investor can
grab with AT&T or Verizon. The silver lining is IYZ has shown
itself to be home to be reliable dividend by virtue of the fact
that many of its components are serial dividend raisers.
The ETF debuted in mid-2000, so its first full year of
dividend payments was 2001 when it paid out roughly $0.24 a
share. IYZ's three dividend payments this year equal
Technology Select Sector SPDR (NYSE:
One of the top dividend stories of 2012
has been the rise to prominence by the technology
. The sector is now the largest dividend payer of the 10 industry
groups tracked by the S&P 500 and ETFs are starting to
benefit from this trend.
Often known as the ETF with one of the largest allocations to
), XLK is developing a tidy dividend track record. In 2007, XLK's
payout for the entire years was not even $0.20 a share. In 2012,
XLK has paid about $0.33 a share and that is with just three
payouts to this point in the year.
For more on dividend ETFs, click
(c) 2012 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.