In 2024, investors seeking stable income streams and potential capital appreciation often turn to Exchange-Traded Funds (ETFs) that focus on dividend growth. These ETFs can offer a diversified portfolio of dividend-paying stocks, providing investors with a way to participate in the growth of companies that consistently increase their dividends over time. Let’s explore some of the best ETFs for dividend growth in 2024.

One standout ETF for dividend growth investors is the Vanguard Dividend Appreciation ETF (VIG). This ETF tracks the performance of the NASDAQ US Dividend Achievers Select Index, which includes companies with a history of increasing dividends for at least 10 consecutive years. VIG offers exposure to established companies with strong fundamentals and a commitment to rewarding shareholders through consistent dividend growth.

Another top choice is the iShares Core Dividend Growth ETF (DGRO), which seeks to track the investment results of the Morningstar US Dividend Growth Index. DGRO invests in companies that have a history of growing dividends, selecting stocks based on factors like dividend sustainability and growth prospects. With a low expense ratio and a focus on quality dividend-paying companies, DGRO can be a solid addition to a dividend growth-focused portfolio.

For investors looking for international exposure to dividend growth, the SPDR S&P Global Dividend ETF (WDIV) could be a compelling option. WDIV invests in dividend-paying stocks from around the world, providing diversification across regions and sectors. With a focus on companies with sustainable dividend policies and strong financial health, WDIV offers investors the opportunity to benefit from global dividend growth trends.

The ProShares S&P 500 Dividend Aristocrats ETF (NOBL) is another noteworthy choice for dividend growth investors. This ETF tracks the performance of the S&P 500 Dividend Aristocrats Index, which includes companies within the S&P 500 that have a history of increasing dividends for at least 25 consecutive years. NOBL offers exposure to blue-chip companies with a proven track record of consistent dividend growth, making it a reliable option for income-focused investors.

In conclusion, ETFs focusing on dividend growth can be valuable tools for investors seeking a combination of income and potential capital appreciation. By investing in ETFs like VIG, DGRO, WDIV, and NOBL, investors can gain exposure to companies with a history of increasing dividends, positioning themselves to benefit from the long-term growth potential of dividend-paying stocks. As always, it’s important for investors to conduct their own research and consult with financial advisors before making investment decisions.