Dividend growth investing is a proven strategy for identifying high-quality companies with strong fundamentals as businesses that consistently increase dividends tend to demonstrate resilience, robust profitability, and a solid return on equity (ROE). For investors, this means a reliable income stream and long-term capital appreciation.
The Solactive United States Dividend Elite Champions Index, which is tracked by the HAMILTON CHAMPIONS™ U.S. Dividend Index ETF (SMVP), selects companies that have raised their dividends for at least 25 consecutive years without interruption. This focus on consistency highlights firms with strong cash flows and prudent capital management. The index has delivered an impressive 10% annualized dividend growth[1] and provided similar total returns to the S&P 500 while maintaining a higher yield, lower volatility, and shallower drawdowns.
| SMVP Index | S&P 500 | ||
| Yield [2] | Higher Monthly Income | 2.3% | 1.5% |
| Annualized Return [3] | Similar Returns | 10.6% | 10.1% |
| Standard Deviation [4] | Lower Volatility | 17.8% | 19.8% |
| Max Drawdown [5] | Lower Peak-to-Trough Drawdown | (48.5%) | (55.3%) |
| Time to Recovery [6] | Faster Recovery from Trough-to-Peak | 575 days | 1120 days |
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Meet the HAMILTON CHAMPIONS™
Below are some standout companies from the Solactive United States Dividend Elite Champions Index that exemplify sustainable dividend growth and financial strength.
Roper Technologies Inc. (ROP)
- Sector: Information Technology
- Established: 1890
- Market Cap: $63.4 Billion
- Annualized Dividend Growth (25 Years): 13.5%[7]
- Annualized Return: 14.9% (compared to S&P 500: 7.7%) [7]
Roper Technologies is a diversified technology company specializing in software and engineered products for niche markets, including healthcare, transportation, and industrial technology. Its asset-light, high-margin business model and recurring revenue streams drive consistent dividend growth.
Eli Lilly & Co. (LLY)
- Sector: Health Care
- Established: 1876
- Market Cap: $769.9 Billion
- Annualized Dividend Growth (25 Years): 7.3% [7]
- Annualized Return: 13.4% (compared to S&P 500: 7.7%) [7]
Eli Lilly is a global pharmaceutical leader focused on treatments for diabetes, cancer, and autoimmune diseases. Its blockbuster drugs, such as Trulicity and Mounjaro, contribute to strong revenue growth, while its promising pipeline ensures long-term dividend sustainability.
Automatic Data Processing Inc. (ADP)
- Sector: Industrials
- Established:
- Market Cap: $124.3 Billion
- Annualized Dividend Growth (25 Years): 12.2% [7]
- Annualized Return: 10.3% (compared to S&P 500: 7.7%) [7]
ADP is a global leader in human capital management solutions, offering payroll, talent management, and benefits administration services. Its high client retention and steady demand for HR services support its history of consistent dividend increases.
Sherwin-Williams Co. (SHW)
- Sector: Materials
- Established: 1866
- Market Cap: $87.8 Billion
- Annualized Dividend Growth (25 Years): 12.2% [7]
- Annualized Return: 18.6% (compared to S&P 500: 7.7%) [7]
Sherwin-Williams is a leading global manufacturer of paints and coatings, serving both professional contractors and DIY consumers. Its strong brand presence and resilient demand for home improvement projects contribute to steady dividend growth.
Lowe’s Companies Inc. (LOW)
- Sector: Consumer Discretionary
- Established: 1921
- Market Cap: $130.7 Billion
- Annualized Dividend Growth (25 Years): 21.5% [7]
- Annualized Return: 13.4% (compared to S&P 500: 7.7%) [7]
Lowe’s, a top home improvement retailer, benefits from ongoing renovation trends and a strong DIY market. Its ability to generate consistent cash flows supports its impressive long-term dividend growth.
Caterpillar Inc. (CAT)
- Sector: Industrials
- Established: 1925
- Market Cap: $157.8 Billion
- Annualized Dividend Growth (25 Years): 9.0% [7]
- Annualized Return: 14.5% (compared to S&P 500: 7.7%) [7]
Caterpillar is a leading manufacturer of construction and mining equipment, benefiting from global infrastructure investment. Its disciplined capital allocation strategy supports stable and growing dividends.
Aflac Inc. (AFL)
- Sector: Financials
- Established: 1955
- Market Cap: $61.2 Billion
- Annualized Dividend Growth (25 Years): 14.7% [7]
- Annualized Return: 11.3% (compared to S&P 500: 7.7%) [7]
Aflac specializes in supplemental insurance products in the U.S. and Japan, focusing on accident, critical illness, and life insurance. Its strong cash flow generation and conservative risk management contribute to consistent dividend increases.
HAMILTON CHAMPIONS™ U.S. Dividend Index ETF (SMVP)
Investors looking to gain exposure to these high-quality U.S. dividend growers can consider the HAMILTON CHAMPIONS™ U.S. Dividend Index ETF (SMVP). SMVP is the only ETF in Canada that tracks the Solactive United States Dividend Elite Champions Index, providing diversified access to established dividend growth companies. SMVP is currency-hedged, pays monthly distributions, and features a competitive 0.19% management fee, which has been waived to 0% through January 31, 2026.
By focusing on companies with a proven track record of increasing dividends, SMVP offers a compelling investment option for those looking to combine income stability with strong total returns. Those seeking enhanced exposure to SMVP with modest 25% leverage can consider the HAMILTON CHAMPIONS™ Enhanced U.S. Dividend ETF (SWIN).
To learn more about our HAMILTON CHAMPIONS™ suite of ETFs, check out our HAMILTON CHAMPIONS™ Dividend Growth Playbook.
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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.
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[1] Source: Bloomberg, Solactive AG. Data from November 1, 2006, to March 31, 2025.
[2] Yield: The annual dividend income expressed as a percentage of the share price on March 31, 2025.
[3] Annualized Return: The annualized total rate of return
[4] Standard Deviation: A measure of an investment’s return volatility, indicating the degree of variation from its average return;
[5] Max Drawdown: The largest percentage drop from an investment’s peak value to its lowest point
[6] Time to Recovery: The time it takes for an investment to recover from a drawdown and reach its previous peak value;
These projections are uncertain and may be influenced by factors such as market volatility, economic conditions, and company performance. 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 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.
[7] As at March 31, 2025. Source: Bloomberg