As a big believer in the power of compounding, I think that making long-term investments is one of the best ways to grow your wealth.
Especially if you can find investments that will pay you a growing stream of dividends. This helps put the power of compounding into overdrive. And who doesn't want that!
The good news is that investors don't just have to buy individual ASX dividend shares to achieve this.
That's because there are plenty of ASX exchange traded funds (ETFs) out there that also provide investors with the potential for growing dividends. Here are three to look at:
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BetaShares S&P 500 Yield Maximiser (ASX: UMAX)
The BetaShares S&P 500 Yield Maximiser has been designed to generate attractive quarterly income and reduce the volatility of portfolio returns. It uses an equity income investment strategy over a portfolio of shares comprising the S&P 500 Index to achieve this.
The ASX ETF has grown its distribution three out of the last four years and appears well-placed to do it again this year. At present, the BetaShares S&P 500 Yield Maximiser's units currently trade with a trailing 6.9% distribution yield.
iShares Global Consumer Staples ETF (ASX: IXI)
As its name implies, the iShares Global Consumer Staples ETF gives investors exposure to global consumer staples companies. These are companies likes Coca-Cola, Nestle, Procter & Gamble, and Unilever, which produce products that remain in demand whatever happens in the economy.
This ASX ETF has grown its dividend for three years running and currently trades with a yield of approximately 2%. While this is not the largest yield, it has the potential to increase materially over the long term.
iShares S&P 500 ETF (ASX: IVV)
The iShares S&P 500 ETF aims to provide investors with the performance of Wall Street's famous S&P 500 Index before fees and expenses. It also offers investors a growing source of income, with the ASX ETF growing its distribution from 19.9 cents per share in 2013 to 49.6 cents per share in 2022.
And while its trailing yield sits at only ~1.5%, as you see above, this could increase materially over the next decade and help compound your wealth.
