Investors looking for ways to add income to their portfolio might consider exchange-traded funds (ETFs) that allocate to companies with a track record of increasing shareholder payouts.
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.
You can find several ETFs that offer exposure to those companies and other dividend growth stocks, but investors should note these funds are not interchangeable. Each of the ETFs below has a different objective and serves a different role in a portfolio.
In other words, there’s no universal “best” fit for any investor’s situation. Characteristics like market capitalization and sector weightings are worth understanding, as they play distinct roles in performance and portfolio objective.
Here are five ETFs that factor dividend growth into their methodologies:
| ETF | Expense ratio | Trailing-12-month yield |
| ProShares S&P 500 Dividend Aristocrats ETF (ticker: NOBL) | 0.35% | 2.1% |
| Schwab U.S. Dividend Equity ETF (SCHD) | 0.06% | 3.3% |
| WisdomTree US Quality Dividend Growth Fund (DGRW) | 0.28% | 1.3% |
| ProShares S&P MidCap 400 Dividend Aristocrats ETF (REGL) | 0.40% | 2.2% |
| ProShares S&P Technology Dividend Aristocrats ETF (TDV) | 0.45% | 1.0% |
ProShares S&P 500 Dividend Aristocrats ETF (NOBL)
NOBL is the only ETF tracking the S&P 500 Dividend Aristocrats™ Index.
It currently consists of 69 stocks, with consumer staples, industrials and financials as the largest sector weightings. All index stocks must have a history of growing dividends for 25 years or more.
“The expense ratio is 0.35% since it uses a more selective, rule-based approach to choose its investments,” says Jose Llanio, senior wealth advisor at Gamma Asset Management in Miami.
The ETF’s dividend yield is 2.1%, and it currently holds around $11 billion in assets under management (AUM).
“NOBL is geared to income-focused investors who value capital preservation and are willing to accept a lower yield for that level of safety,” Llanio says.
He adds that this ETF pays quarterly qualified dividends, which results in favorable tax treatment.
Schwab U.S. Dividend Equity ETF (SCHD)
This ETF measures performance of the Dow Jones U.S. Dividend 100 Index, which consists of stocks paying higher-than-average dividends, and which have a 10-year history of shareholder payouts. The index also incorporates quality screens to avoid “yield traps,” or unsustainably large yields caused by collapsing share prices.
This ETF has more than $95 billion in AUM, and is outperforming the S&P 500 by a wide margin year to date. It has a dividend yield of 3.3%. This leadership is driven by investors rotating toward dividend-paying companies with strong cash flow and away from expensive mega-cap growth stocks. However, that market leadership can change quickly, and over longer periods, the S&P 500 has outperformed during bull rallies.
“One potential drawback is that SCHD can become concentrated in sectors like financials, industrials and energy, depending on market conditions, which may create periods of underperformance relative to broader growth-oriented benchmarks,” says Brett Hina, managing partner and private wealth advisor at Cornerstone Private Wealth in Northfield, New Jersey.
“I generally view SCHD as suitable for long-term investors seeking a core equity holding with an emphasis on income growth and quality,” he adds.
WisdomTree US Quality Dividend Growth Fund (DGRW)
DGRW targets high-quality U.S. companies with the potential to increase dividends over time. It screens for factors including return on equity, return on assets, and sales and earnings growth.
This ETF tends to have more exposure to technology and other growth-oriented sectors compared to more traditional dividend funds, Hina says.
“I often view DGRW as a strong option for investors who want dividend exposure but are concerned about missing out on long-term growth opportunities,” he says.
He notes that the portfolio’s quality screens can help avoid weaker companies that may struggle to sustain dividend payouts during economic slowdowns.
Hina says investors should understand that DGRW’s yield may be lower than more traditional high-dividend ETFs because it focuses on growth potential rather than maximizing current income.
[Read: 7 Best Monthly Dividend ETFs to Buy Now]
ProShares S&P MidCap 400 Dividend Aristocrats ETF (REGL)
This ETF takes a different approach to Dividend Aristocrats™, focusing on the mid-cap universe instead of large caps.
REGL’s underlying index screens for companies that have grown their dividends for at least 15 years.
“Mid-caps tend to be under-followed, less institutionally crowded and historically have demonstrated strong long-run returns relative to both large-cap and small-cap peers,” says Victor Hernandez, managing partner of NewEra Wealth Advisors in Miami.
“REGL’s holdings generate over 85% of their revenues from domestic sources, which provides a meaningful buffer against tariff and currency headwinds,” Hernandez says. He notes that this is a timely consideration in the current macro environment.
“I tend to recommend REGL as a satellite position within a dividend income framework, particularly for clients who want diversification away from the large-cap dividend stalwarts,” he adds.
ProShares S&P Technology Dividend Aristocrats ETF (TDV)
Savvy investors usually associate tech stocks with growth, not income. But that notion gets flipped on its head in this case.
The fund tracks the S&P Technology Dividend Aristocrats™ Index, composed of tech stocks that have grown dividends for at least seven years.
“TDV is the most counterintuitive fund on this list, and that’s exactly what makes it interesting,” Hernandez says.
He points out that companies including Texas Instruments Inc. (TXN), Qualcomm Inc. (QCOM) and Broadcom Inc. (AVGO), all which have strong free cash flow profiles and a demonstrated commitment to returning capital, qualify for this index.
The fund’s returns compare favorably to more traditional dividend strategies, Hernandez adds.
He says that this ETF’s expense ratio of 0.45% is higher than other dividend funds, and with AUM of around $287 million, it’s a niche fund with less liquidity than SCHD or DGRW.
“For clients who want technology exposure but want it anchored by free cash flow and dividend discipline rather than pure momentum or growth metrics, TDV is a genuinely differentiated tool,” Hernandez says. “It’s not a core holding, but as a focused satellite in a broader dividend portfolio, it adds something the others simply don’t.”
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5 Dividend Aristocrat ETFs to Buy Now originally appeared on usnews.com
Update 05/29/26: This story was previously published at an earlier date and has been updated with new information.
