Dividend-growth ETFs trade a lower starting yield for companies that have raised their payouts for years — and tend to keep doing so. Over a long horizon, the growing income stream is often the point.
Last reviewed on August 11, 2026
| Ticker | Name | Yield | Growth Screen | Expense Ratio |
|---|---|---|---|---|
| NOBL | ProShares S&P 500 Dividend Aristocrats ETF | 2.15% | 25+ years of increases | 0.35% |
| SDY | SPDR S&P Dividend ETF | 2.42% | 20+ years of increases | 0.35% |
| VIG | Vanguard Dividend Appreciation ETF | 1.85% | 10+ years of increases | 0.05% |
| DGRO | iShares Core Dividend Growth ETF | 2.28% | 5+ years of increases | 0.08% |
| SCHD | Schwab U.S. Dividend Equity ETF | 3.89% | 10+ years + quality | 0.06% |
A company that raises its dividend every year for a decade or more signals a few things: durable free cash flow, a board comfortable committing to a growing payout, and a business model resilient enough to survive downturns without cutting. That combination historically correlates with lower drawdowns and more stable total returns than the broad market, though "historically correlates" is not a guarantee about the next decade.
For a buy-and-hold investor, the compelling part of dividend growth is the yield-on-cost mechanic. If you buy a fund at a 2% yield and the underlying companies collectively raise dividends 7% per year, your income from that original investment roughly doubles over a decade — without you doing anything. Reinvest those dividends and the doubling happens faster.
Every dividend-growth ETF in the table above is trying to do something similar, but each one draws the line in a different place. The dividend-growth screen (how many consecutive years of increases the company must show) is the headline filter; the weighting scheme and secondary quality checks determine how the resulting portfolio actually behaves.
The decision rarely comes down to which fund is "best" in the abstract. It comes down to which set of compromises fits your plan:
Dividend growth rarely has to be the whole portfolio. Some common patterns:
Whichever pattern you pick, the portfolio builder will show the weighted yield and expense ratio, and the DRIP strategies guide explains how to let a growing income stream compound.
There is no single winner — the screens differ. SCHD is the default for income today plus growth (10-year streak + quality filters, ~3.9% yield). VIG is the cheapest broad option (0.05% fee, 10-year streak). NOBL is the strictest quality signal (25-year Dividend Aristocrats only). Pick by which compromise fits your plan, not by last year's return.
NOBL holds the official S&P 500 Dividend Aristocrats (25+ years of consecutive increases). SDY tracks the S&P High Yield Dividend Aristocrats — a related index with a 20-year threshold and yield weighting. See the NOBL vs VIG comparison for how the strict screen changes behavior.
It depends on your horizon. High-yield funds pay more now; growers typically pay more later — a 2% yield growing 7% a year doubles your income per original dollar in about a decade, while most high-yield payouts grow slowly or not at all. Long horizons favor growers; income needed today favors the high-yield list.