2 Top Dividend Growth ETFs for Long-Term Recurring Income

For investors seeking a steady stream of income over the years, focusing on dividend growth can be a rewarding strategy. Dividend growth ETFs aggregate stocks known for their consistency in increasing payouts, offering a blend of both income and potential capital appreciation. These funds are particularly attractive as they invest in companies with strong histories of dividend growth, such as Microsoft Corporation MSFT and others.

Understanding Dividend Growth Investing

Dividend growth investing is an approach that prioritizes stocks with a consistent history and promising future of increasing dividend payments. This strategy does not just look for stocks with high yields today, but those with the potential to offer growing income over time. ETFs that focus on dividend growth provide investors access to a diverse set of such companies, which can reduce risk and enhance the stability of investment returns.

Spotlight on Microsoft Corporation MSFT

As an exemplary constituent of dividend growth ETFs, Microsoft Corporation MSFT stands out as a paragon of enduring corporate success. An American multinational technology titan, Microsoft has a diverse set of products and a robust stream of revenue from its suite of services and hardware—including the acclaimed Microsoft Windows operating systems, Microsoft Office software, the revolutionary Edge browser, Xbox gaming consoles, and the innovative Surface personal computers. It's not just about their reigning status as the world's premier software manufacturer by revenue as of 2016, but also about their well-earned reputation for reliability and growth, both in market presence and in dividend payments.

With a track record that earned it a spot in the Fortune 500 list at No. 21 in 2020, Microsoft represents the reliability and strength dividend growth investors look for. Whether it's the stability offered by its ubiquity across nearly every aspect of modern computing or its membership in the prestigious Big Five of the U.S. tech industry alongside giants like Google, Apple, Amazon, and Facebook, Microsoft's growth trajectory remains positive. The company's dividends reflect its financial health and commitment to returning value to shareholders, a trait shared by other stocks held within dividend growth ETFs.

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