Traditionally, dividends are known for coming from €œdefensive sectors € like Consumer Staples, Health Care, Utilities and Telecommunications Services. And while Information Technology is driving the bulk of dividend growth today, it tends to be underweight in many dividend growth strategies12. We believe that DGRW's forward-looking strategy may provide investors with the potential to capitalize on the industries and companies growing their dividends the fastest today - and tomorrow.
Sources: WisdomTree, Bloomberg as of 12/31/2014
*Defensives: Consumer Staples, Health Care, Utilities, Telecommunication Services
12 Refers to the NASDAQ U.S. Dividend Achievers Select Index, the S&P High Yield Dividend Aristocrats Index and the Dow Jones U.S. Select Dividend Index. Source: Bloomberg as of 12/31/2014.
DGRW may help investors capture more dividend growth than backward-looking dividend ETFs. A diversified basket of dividend growers, DGRW can play many roles within a portfolio.
DGRW may help investors generate additional dividend income.
DGRW seeks to provide investors not only with current income, but also a potentially growing income stream.
As a forward-looking ETF, DGRW may help investors to better capitalize on dividend growth trends today - and tomorrow.
Dividend-paying equities are an attractive option for investors looking to generate income, pursue higher total return potential and more. Consider that:
DGRW seeks to help you capitalize on dividend growth trends today - and tomorrow.
2 Source: Professor Robert Shiller, Yale University, 2014. Universe is the S&P 500 Index from 12/31/1957 to 12/31/2014.
3 Refers to the universe of the WisdomTree Dividend Index for the period 11/30/2007 to 9/30/2015. Sources: WisdomTree, Bloomberg.
4 Sources: WisdomTree, Bloomberg.
5 Backward-looking dividend growth screen: Screen that requires dividend growth over a past period of time in order to determine constituent eligibility.
6 Sources: WisdomTree, Bloomberg. Universes include the NASDAQ U.S. Dividend Achievers Select Index, Dow Jones U.S. Select Dividend Index, and S&P High Yield Dividend Aristocrats Index. As of 9/30/2015.
Apple is now the second largest dividend payer in the United States.7 But indexes like the NASDAQ U.S. Dividend Achievers Select Index won't be able to include it until 2023. In fact, because of its strict historical growth requirements, this index currently excludes many of today's 20 largest dividend payers8. Apple and many other dividend leaders, however, are already eligible for inclusion in DGRW9.
*Year of potential eligibility: Constituents of DVG must demonstrate 10 consecutive years of dividend increases to be eligible for inclusion. Year indicates when an excluded stock could meet that criterion. €œCurrent Member € indicates stocks that are currently included in DVG.
Sources: WisdomTree, Bloomberg. Past performance is not indicative of future results. You cannot invest directly in an index. Holdings subject to change. Data as of 9/30/2015.
7 Based on Apple's indicated dividend per share multiplied by its shares outstanding as of 9/30/2015. Source: Bloomberg.
8 20 largest dividend payers is based on the cash Dividend Streams of companies within the WisdomTree U.S. Dividend Growth Index as of 9/30/2015.
9 As of September 30, 2015 Apple's weight within the WisdomTree U.S. Quality Dividend Growth Index was 4.2%.
The WisdomTree U.S. Quality Dividend Growth Index, which DGRW is designed to track, uses a strict, rules-based process for selecting and weighting stocks.
10 Return on Assets (ROA): Firm profits (after accounting for all expenses) divided by the firm's total assets. Higher numbers indicate greater profits relative to the level of assets utilized to generate them.
11 Return on equity (ROE): Firm profits (after accounting for all expenses) divided by the firm's equity. Higher numbers indicate greater profits relative to the level of equity.