I mentioned in my post earlier this week about the possible advantages of focussing on stocks which have shown a consistent track record of increasing their dividends. S&P also provide an index for this in the UK and other regions around the world. The UK version is also offered as an ETF under the ticker UKDV which has been available since 28th February 2012.
You can get a copy of a recent fact sheet by clicking the highlighted ticker above or see it on line if that is of interest to you? If you want to get a spreadsheet with a list of the 30 holdings making up the fund you can download that here because I like to be helpful.
One interesting things is that I see Tesco (whoops) is in the top ten with a 4% weight - guess after their dividend cut it will drop out on the next index re-balance. I also note that Glaxo is also in the top ten and as I mentioned recently I have some concerns about the sustainability of their dividend distributions in the longer term, so you probably need to do your own research on stocks in this list and make sure you are comfortable with them if you were thinking of investing, this is why I prefer to do it myself.
However, I think the concept behind this index / ETF overall is a good one and if you wanted to follow it blindly then this offers a relatively cheap 0.3% (total expense ratio - TER) way of doing it with a current yield of around 4%. It looks like it has outperformed the FTSE by around 12% in capital terms since inception and obviously a bit more in total return terms given the extra yield. However as you'll see in the chart below is has underperformed over the last year after a poor run since June this year, probably primarily on the back of weakness in Glaxo & Tesco more recently.