While a rise in interest rates would diminish the attractiveness of dividend stocks, investors are chasing these on optimism surrounding the biggest tax overhaul in decades. In particular, stocks that have a long track of profitability, history of raising dividend year over year along with prospects of further increases, good liquidity, and some value characteristics will likely outperform.

This is especially true, as lower corporate taxes would boost companies’ profitability leading to fatter and faster dividend hikes. Additionally, the proposed tax policy will allow companies to bring back their overseas cash at reduced rates that will, in turn, pave the way for special dividends.

Apart from the excitement surrounding tax cut, quality enriched stocks generally outshine in a rising rate environment. Additionally, quality dividend stocks have a long history of outperformance compared with other high-yield dividend-paying stocks, which are currently being ruffled by rising rates.

Further, these stocks have a strong potential for growth with better risk-adjusted returns over the long term. This is because quality dividend stocks offer safety and stability in a choppy stock market as they ensure regular income to investors in the form of dividends. At the same time, they also have the potential for capital appreciation when the market is on an upswing. Investors should note that these are mature companies that are less vulnerable to the large swings in stock prices, and therefore well protected than others in a tumbling market.

As a result, we have highlighted five ETFs that offer better dividend growth opportunities compared with the other products in the space but might not necessarily have the highest yields. These funds hit their all-time highs in the last trading session and have the potential to move even higher given that the enactment of tax reform in 2018 is most likely.

This fund tracks the WisdomTree U.S. Quality Dividend Growth Index and offers diversified exposure to U.S. dividend-paying stocks with both growth and quality characteristics like long-term earnings growth expectations, and three-year historical averages for return on equity and return on assets. It has gathered $1.9 billion in its asset base and trades in good volume of nearly 203,000 shares per day. The ETF charges 28 bps in fees per year from investors and holds 298 securities in its basket, with each accounting for no more than 5.3% share. From a sector look, it provides double-digit allocation to information technology, industrials, health care, consumer discretionary and consumer staples. The fund hit its all-time high of $41.88 per share, representing a gain of about 28.3% in the year-to-date time frame. It has a Zacks ETF Rank #3 (Hold).