The broad market decline that got underway in December picked up steam after President Donald Trump announced global tariffs.
A declining stock market is a good reminder for retirement investors to look at not only price growth, but also income.
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In an April 3 note, New York Life global market strategy analysts wrote, “Earnings quality in equities is likely to be most credible in large caps.”
It follows, then, that many of these large stocks with reliable earnings would also be dividend payers.
“This is also the time to consider leaning into income generation, in both dividend-yielding equities and through credit diversification,” said the New York Life analysts.
Companies that consistently increase their dividends over time, sometimes over several decades, are in a unique group of those with strong financial health and a long-standing commitment to shareholder value. These dividend growers, also known as “Dividend Aristocrats” if they’ve raised their payout for at least 25 years in a row, can strike a balance between income and growth potential, making them an attractive option for long-term investors.
Here are some exchange-traded funds, or ETFs, that track dividend stocks. These include the typical large-cap multi-sector funds that generally compose the dividend-paying universe, as well as mid-caps and a tech fund, both of which investors may overlook when seeking income:
| Dividend Aristocrat ETF | 12-Month Yield | Expense Ratio |
| Schwab US Dividend Equity ETF (ticker: SCHD) | 3.7% | 0.06% |
| ProShares S&P 500 Dividend Aristocrats ETF (NOBL) | 2.1% | 0.35% |
| WisdomTree US Quality Dividend Growth Fund (DGRW) | 1.6% | 0.28% |
| ProShares S&P MidCap 400 Dividend Aristocrats ETF (REGL) | 2.5% | 0.40% |
| ProShares S&P Technology Dividend Aristocrats ETF (TDV) | 1.2% | 0.45% |
Schwab US Dividend Equity ETF (SCHD)
This ETF tracks the Dow Jones U.S. Dividend 100 Index, offering broad exposure to the 100 largest stocks that pay high dividends. Going a bit beyond Dividend Aristocrats, it screens for a history of at least 10 years of consecutive payouts, or stocks known as “Dividend Achievers.”
It’s market-cap weighted, with the largest holdings being ConocoPhillips Inc. (COP), Verizon Communications Inc. (VZ) and Coca-Cola Co. (KO).
Carlos Sanabria, investment specialist at Signature Estate & Investment Advisors in Los Angeles, notes this ETF’s low expense ratio of 0.06%.
“It’s great for passive investors who want to increase income in a portfolio, or are looking for a stable investment to pair with more growth-oriented ETFs like QQQ,” he says, referring to the Invesco QQQ Trust, which tracks the Nasdaq-100.
Investors should understand when SCHD is likely to underperform, however. “Because higher-dividend stocks tend to be in more defensive industries like consumer staples or health care, the ETF may lag markets during periods when high-growth sectors like technology dominate,” Sanabria says.
ProShares S&P 500 Dividend Aristocrats ETF (NOBL)
This is the only ETF focusing exclusively on the S&P Dividend Aristocrats. That consistency is a trait of companies that can maintain earnings throughout various market and economic cycles.
“Investors seeking lower volatility, consistent earnings and strength in fundamentals relative to the rest of the S&P 500 should take a look at these high-quality dividend growers,” says Simeon Hyman, global investment strategist at ProShares in New York.
Hyman adds that NOBL’s top-performing holdings include International Business Machines Corp. (IBM), AbbVie Inc. (ABBV) and Brown & Brown Inc. (BRO).
This ETF’s expense ratio is 0.35%. As of April 4, the ETF had a year-to-date price decline of 4.6%, versus the S&P’s 13.7% drop.
WisdomTree US Quality Dividend Growth Fund (DGRW)
This ETF tracks an index of large-cap U.S. companies that are growing their dividends. The largest holdings among the ETF’s 300 stocks include Microsoft Corp. (MSFT), Apple Inc. (AAPL) and Exxon Mobil Corp. (XOM).
Sanabria says weighting is based on market cap and dividends paid, with caps at the individual and sector level to ensure diversification.
“The earnings growth screening increases the fund’s exposure to more cyclical sectors like technology at the cost of a slightly lower yield, relative to purely yield-focused peers,” he adds.
He says DGRW may be a sound option for investors who are less concerned with the absolute level of income the fund provides, but want a quality-focused investment with higher yield than the broader market.
ProShares S&P MidCap 400 Dividend Aristocrats ETF (REGL)
Mid-caps have a history of outperforming both large and small caps over the long term. Mid-caps are generally classified as companies with market capitalizations between between $2 billion and $10 billion.
The REGL ETF invests exclusively in high-quality mid-cap companies that have increased dividends for at least 15 consecutive years.
“High-quality mid-cap companies can deliver all-weather performance, and capture more of the upside when markets are doing well, with less of the downside during drawdowns,” said Kieran Kirwan, senior investment strategist at ProShares.
Kirwan notes that REGL trades at a fraction of the valuation multiple of the S&P 500. The Midcap 400’s forward price-to-earnings ratio is 14.6, versus the S&P 500’s forward P/E of 19.6. So far in 2025, it’s outperforming the S&P 500 with a decline of 6.2%.
“REGL’s holdings also generate over 85% of their revenues from domestic sources, potentially insulating them from the effects of tariffs,” Kirwan adds.
ProShares S&P Technology Dividend Aristocrats ETF (TDV)
The tech sector accounts for 30% of current S&P 500 market value. It’s known as a volatile sector, which tends to outperform in bull markets, while underperforming in weak market conditions. For example, it’s the most beaten-up sector year to date, with a decline of more than 16%.
“Without a crystal ball, it’s arguably too much of a risk to eliminate these stocks from one’s portfolio,” Hyman says.
Investors don’t typically associate techs with dividend growth, but the TDV ETF is designed to measure performance of U.S. technology companies that have consistently increased dividends for at least seven consecutive years.
“Consistent dividend growth is not just a marker of quality; it is a vital signal as well. When a company increases its dividend, it indicates confidence in the future,” Hyman says. “When a company buys back shares, it’s simply telling you it had a good year last year. That’s a distinction that’s particularly important in the tech sector,” he adds.
Top-weighted components include CSG Systems International Inc. (CSGS), IBM and Roper Technologies Inc. (ROP).
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Update 04/07/25: This story was previously published at an earlier date and has been updated with new information.
