9 ETFs That Screen for Dividend Growth
The iShares Core Dividend Growth ETF (DGRO) was launched in June 2014 and is based on the Morningstar U.S. Dividend Growth index, introduced in April of that year. The index requires that a constituent security pay qualified income (i.e., no REITs or limited partnerships), have at least five years of uninterrupted dividend growth, and pay out less than 75% of earnings.
In addition, the index excludes those stocks whose yield is in the top 10% of that universe. Although Morningstar does not indicate the reason for the exclusion, most dividend experts recognize that the top yielders may include stocks that have sold off in anticipation of a dividend cut.