Play Dividend Growth ETFs With a Focus on Long-Term Potential

Oil Market Swings Amid Geopolitical Tensions

Recent global news has been dominated by sharp fluctuations in oil prices, fueled by the ongoing conflict involving the U.S. and Israel against Iran. On Monday, oil briefly approached $120 per barrel before retreating, as investors weighed the likelihood of governments releasing emergency oil reserves and considered President Donald Trump’s comments suggesting the dispute could be resolved “soon.”

The volatility continued into Tuesday, with oil prices falling after Energy Secretary Chris Wright posted—then deleted—a message on social media claiming the U.S. had escorted an oil tanker through the Strait of Hormuz.

Gold Remains Resilient as Energy Prices Surge

Gold prices have held steady despite the turbulence in energy markets. The spike in energy costs has intensified inflation worries, leading to diminished expectations for interest rate reductions by the Federal Reserve and other central banks. Since gold does not yield interest, higher rates typically make it less attractive. Nevertheless, gold has climbed roughly 20% this year, maintaining its appeal as a safe haven during uncertain times.

Dividend Growth ETFs: A Smart Strategy in Uncertain Markets

Dividend investing continues to attract attention, regardless of stock market conditions. Investors often seek reliable income streams alongside capital appreciation, and the appeal of dividends grows even stronger during periods of market instability and global economic uncertainty.

It’s important to recognize that not all dividend stocks serve the same role. High-yield stocks offer substantial immediate income, while those with a history of dividend growth—often called “dividend aristocrats”—signal strong fundamentals and are favored for value investing, especially when markets are volatile.

With this in mind, here are several dividend aristocrat ETFs that may be worth considering right now:

• SPDR S&P Dividend ETF (SDY): Tracks the S&P High Yield Dividend Aristocrats Index, which includes S&P Composite 1500 companies that have raised dividends for at least 20 consecutive years. The ETF charges a 0.35% fee and yields 2.40% annually. Year-to-date, it has gained over 7%, outperforming the S&P 500’s 0.9% decline.
• ProShares S&P 500 Dividend Aristocrats ETF (NOBL): This fund tracks companies in the S&P 500 that have increased dividends for at least 25 years and meet specific size and liquidity criteria. It has a 0.35% expense ratio and a 2.02% yield. NOBL is up more than 4% so far this year.
• O'Shares FTSE US Quality Dividend ETF (OUSA): This ETF tracks the OShares U.S. Quality Dividend Index, focusing on large- and mid-cap U.S. companies with strong dividend records. The fund’s expense ratio is 0.48%, with a 1.41% annual yield, and it has risen 1.4% this year.
• Invesco Dividend Achievers ETF (PFM): Follows the NASDAQ US Broad Dividend Achievers Index, which identifies companies that have increased dividends for at least 10 consecutive years. The ETF charges 0.52% in fees, yields about 1.38% annually, and is up approximately 1.5% year-to-date.

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