June 9, 2021
Sustainability is all the rage these days, as asset allocators prioritize environmental stewardship and social and governance progress.
However, seasoned dividend investors know sustainability in another way: gauging a company’s ability to not only maintain its current payouts, but grow them over the long-term. Many investors may not realize that some exchange traded funds, including the
PFM, which turns 16 years old in September, follows the NASDAQ US Broad Dividend Achievers Index. That index mandates that member firms have dividend increase streaks spanning at least 10 years. That’s a tough standard to meet, but PFM has 353 components.
As the dividend landscape changes with more sectors contributing larger percentages to overall domestic payouts and with more companies walking the walk when it comes to environmental, social, and governance (ESG) talk, PFM could be an increasingly relevant idea for investors looking to check both boxes at once.