Dividend Growth Stocks Vs. The XLP, Part 1
By Eli Inkrot:The rising popularity of Exchange Traded Funds is neither overly surprising nor inherently difficult to comprehend. Much in the same manner that mutual funds came to flourish, ETF's offer a wide range diversifying products for a cost that usually far undercuts what one could accomplish on their own. As a dividend growth investor, I have become increasingly interested in comparing the rationale of investing in a collection of dividend growth stocks versus allocating capital to a specified ETF. Specifically, I wanted to compare dividend growth investing to the consumer goods industry. Why this particular sector? I simply made a list of my 50 or so favorite dividend paying companies and found that an overwhelming sampling of these firms fell into this category. As a proxy will use the Select Sector Consumer Staples SPDR (XLP), which includes such well known dividend growth stalwarts as Procter & Gamble (PG), Wal-Mart (WMT), Coca-ColaComplete Story »
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