Take the Guesswork Out of Dividend Investing With These ETFs
This post is sponsored by Hamilton ETFs
Dividend growth investing has long been a cornerstone of long-term wealth creation. Unlike strategies that chase high-growth stocks or high-yield dividends, dividend growth investing focuses on companies that consistently increase their dividends.
This approach has historically provided higher risk-adjusted returns, offering both capital appreciation and a steady stream of income.
Why Dividend Growth Investing?
Dividend growth investing is all about consistency. This strategy focuses on companies with a proven track record of increasing their payouts year after year.
These companies tend to thrive during economic downturns, thanks to strong cash flows, disciplined capital management, and a commitment to rewarding shareholders.
At the core of this strategy are Dividend Aristocrats — companies that have raised their dividends for at least 25 years, or 5 years here in Canada[1].
Picking the Best Dividend Growth Lineup
Despite dividend growth investing being a rock-solid strategy, it is still possible to pick poor dividend growth stocks. There are plenty of them, and it can be a bit overwhelming to build a portfolio of individual equities.
I also find that the current ETFs out there in terms of dividend growth and Dividend Aristocrats leave something to be desired.
So, when I came across 4 new funds from Hamilton ETFs that focus on dividend growth investing, I did some digging and was pleasantly surprised.
HAMILTON CHAMPIONS™ Suite of ETFs
The HAMILTON CHAMPIONS™ suite is designed to take the guesswork out of dividend investing by selecting top-tier dividend growth companies across North America. While these funds aren’t actively managed, they do track indices that follow a thorough stock selection process, of which I’ll get to it in a bit.
Whether you’re looking for stability, income, or long-term capital appreciation, these ETFs provide a smart, hassle-free way to do it.
HAMILTON CHAMPIONS™ Dividend Growth Strategy
HAMILTON CHAMPIONS™ ETFs provide exposure to some of the best dividend-growing companies in Canada and the U.S.
There are four in total, and a couple of them have what I view as one of the best elements of Hamilton’s products: the use of a comfortable amount of leverage.
- CMVP – HAMILTON CHAMPIONS™ Canadian Dividend Index ETF
- SMVP – HAMILTON CHAMPIONS™ U.S. Dividend Index ETF
- CWIN – HAMILTON CHAMPIONS™ Enhanced Canadian Dividend ETF (modest 25% leverage)
- SWIN – HAMILTON CHAMPIONS™ Enhanced U.S. Dividend ETF (modest 25% leverage)
Each ETF in the HAMILTON CHAMPIONS™ suite tracks the Solactive Dividend Elite Champions Indices, which include the Solactive Canada Dividend Elite Champions Index (“Canadian Dividend Champions Index”) and the Solactive United States Dividend Elite Champions Index (“U.S. Dividend Champions Index”).
These indices are built to provide a well-diversified selection of companies with a long-standing history of increasing and sustaining dividends. The table below highlights the key characteristics of these indices.
Why I’m a Fan of These Dividend Growth Indices
As many of you know, I’m a total return investor. However, I have to give credit where credit is due, as these indices have not only provided a strong income stream, but strong capital appreciation as well.
The Solactive Dividend Elite Champions Indices have delivered:
- Lower Volatility – Reduced fluctuations compared to the broader market
- Lower Maximum Drawdowns – Better capital protection in downturns
- Faster Recovery Time – Quicker rebounds after market corrections
- Cost Efficiency – CMVP and SMVP currently have a 0% management fee until January 31, 2026[2]
Index Performance
The charts below highlight the historical performance of the Solactive Canada Dividend Elite Champions Index and the Solactive United States Dividend Elite Champions Index against their respective benchmarks, demonstrating the power of disciplined dividend growth strategies over the long term.
Canadian HAMILTON CHAMPIONS™ — Growth of $100K
U.S. HAMILTON CHAMPIONS™ — Growth of $100K
Balanced Sector Exposure
The Solactive Dividend Elite Champions Indices offer a more balanced sector allocation, with significantly less exposure to technology compared to the S&P 500, where tech makes up over 30% of the index. Since technology stocks often trade at elevated valuations due to high growth expectations, this reduced weighting helps lower volatility and risk.
By emphasizing companies with strong dividend track records, these indices provide diversified equity exposure while minimizing reliance on high-valuation sectors.
Canadian HAMILTON CHAMPIONS™ — Sector Mix
U.S. HAMILTON CHAMPIONS™ — Sector Mix
Wrapping it up
Dividend Aristocrats and dividend growth stocks in general offer a proven strategy for capital appreciation and long-term income stability. Their combination of lower volatility, consistent income, and strong total returns makes them attractive to both conservative and growth-oriented investors.
These new funds from Hamilton ETFs offer an efficient way to invest in high-quality dividend growers, providing benefits such as reduced drawdowns, quicker recovery times, and strong risk-adjusted returns.
In my opinion, the Canadian market has been lackluster when it comes to giving investors the avenues to invest in these indices. It doesn’t look like Canadian investors will have difficulties anymore.
To learn more about the HAMILTON CHAMPIONS™ ETFs, visit https://hamiltonetfs.com/hamilton-champions/
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Commissions, management fees and expenses all may be associated with investments in exchange traded funds (ETFs) managed by Hamilton ETFs. Please read the prospectus before investing. Indicated rates of return are the historical annual compounded total returns including changes in per unit value and reinvestment of all dividends or distributions and does not take into account sales, redemptions, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. Only the returns for periods of one year or greater are annualized returns. ETFs are not guaranteed, their values change frequently and past performance may not be repeated.
[1] S&P Global. “S&P 500 Dividend Aristocrats: The Importance of Stable Dividend Income.”
[2] Annual management fee rebated by 0.19% to an effective management fee of 0.00% at least until January 31, 2026.
[3] Annualized Return: The annualized total rate of return. As at February 28, 2025.
[4] Yield: The annual dividend income expressed as a percentage of the share price on February 28, 2025.
[5] Standard Deviation: A measure of an investment’s return volatility, indicating the degree of variation from its average return.
[6] Max Drawdown: The largest percentage drop from an investment’s peak value to its lowest point.
[7] Time to Recovery: The time it takes for an investment to recover from its max drawdown and reach its previous peak value; Past performance is not indicative of future results. Investors cannot directly invest in the index. All performance data assumes reinvestment of distributions and excludes management fees, transaction costs, and other expenses which would have impacted an investor’s results. Solactive Canada Dividend Elite Champions Index and Solactive United States Dividend Elite Champions Index data prior to December 31, 2024, is hypothetical back-tested data using actual historical market data. Actual performance may have been different had the index been live during that period.
[8] The Solactive Canada Dividend Elite Champions Index (SDLCACT) vs. the S&P/TSX 60 Total Return Index with annual compounded total returns and the potential impact of 1.25x leveraged exposure to SDLCACT.
[9] Source: Bloomberg, Solactive AG, Hamilton ETFs. Data from November 1, 2006, to February 28, 2025. The graphs are for illustrative purposes only and intended to demonstrate the historical impact of compounding returns and the use of 1.25x leverage. It is not a projection of future index performance, nor does it reflect potential returns on investments in the ETFs. Investors cannot directly invest in an index. All performance data assumes reinvestment of distributions and excludes management fees, transaction costs, borrowing costs, and other expenses which would have impacted an investor’s returns. Solactive Canada Dividend Elite Champions Index (SDLCACT) and Solactive United States Dividend Elite Champions Index (SDLUSCT) data prior to December 31, 2024, is hypothetical back-tested data using actual historical market data. Actual performance may have been different had the indices been live during that period.
[10] The Solactive U.S. Dividend Elite Champions Index (SDLUSCT) vs. the S&P 500 Index with annual compounded total returns and the potential impact of 1.25x leveraged exposure to SDLUSCT.
[11] Source: Bloomberg, Hamilton ETFs.
[KB1]We can’t make any claims on the ETFs performance.
[DS2]Note the cost is not related to the indices like the prior 3 bullets