Invesco's PEY ETF outperforms with a dividend-growth filter, offering higher returns and reliable income.

Invesco's High Yield Equity Dividend Achievers ETF (PEY) uses a unique strategy by selecting stocks with at least 10 years of consecutive dividend growth before filtering for high yield. This approach avoids the pitfalls of pure yield-based ETFs that may include risky dividend cuts. PEY has outperformed the S&P 500 in 2026, delivering a 24.68% return year-to-date versus 12.71% for the index, while providing a reliable 4.11% dividend yield. The fund focuses on stable, dividend-growing companies like Verizon, Johnson & Johnson, and McDonald's, making it a strong choice for income-focused investors seeking both growth and monthly payouts. Tax implications and sector concentration should be considered before switching funds.