Love Dividend Growth? The Rising Dividend Achievers ETF Is for You!

Investors looking for some good dividend stocks need to look no further than the First Trust Rising Dividend Achievers ETF (NASDAQ:RDVY).

The ETF gives investors the ability to benefit from growing dividend stocks that don’t have high payouts. One of the restrictions for the fund is that a company’s payout ratio cannot exceed 65% and payouts have to have grown from both three and five years ago.

Over the past 12 months, the fund has a distribution rate of 1.67%. While it may not be terribly high, what investors are getting are quality dividend stocks that can provide long-term growth and that can help add stability to your portfolio. Those are two big factors heading into a possible recession that can be very important for risk-averse investors.

More than half of the fund’s holdings come from financials (29.9%) and information technology (27.2%). The fund holds 49 different stocks, with the largest – NVIDIA Corporation (NASDAQ:NVDA) making up just 2.28%. The TJX Companies Inc. (NYSE:TJX) and Apple Inc (NASDAQ:AAPL) round out the top three, and are also at a weight of around 2.2%.

With a good mix of high-quality stocks, investors will be able to benefit from both capital appreciation as well as dividend income.

While it may not be as diversified as an ETF with hundreds of stocks in it, the Rising Dividend Achievers still offer a very conservative approach, investing in many blue-chip stocks that each have very similar weightings, with the smallest holding coming in at a weight of just 1.92%.

Year to date, the fund has risen more than 22% in value.