"Those are two banks that grow dividends well over 100% this year," Newhall says. Among the top VDIGX holdings are Automatic Data Processing ( ADP) (with a dividend of $1.44 and yield of 2.80%), Exxon Mobil ( XOM) ($1.88/2.4%), Pfizer ( PFE) ($0.80/4%), Pepsi ( PEP) ($2.06/3%), Medtronic ( MDT) ($0.90/2.4%), Western Union ( WU) ($0.32/1.6%), IBM ( IBM) ($3/1.8%), Cardinal Health ( CAH) ($0.86/2%) and Johnson & Johnson ( JNJ) ($2.38/3.4%). Colgate-Palmolive ( CL) (with a dividend of $2.32 and yield of 2.7%) "is one we consider a stalwart of the fund," Newhall says. "Colgate is such a great example because you look at it now and, on a run-rate basis, its dividend should increase this year about 14% and this is the 48th consecutive year of dividend growth. We'd love to fill the portfolio with 50 companies like that." SDIV maintains an underlying focus on diversity. It has a multi-national selection of 100 companies, each equally weighted. "The expectation going in is that we would see a lot of concentration in financials and utilities," del Ama says. "When we came back with their list of the top-paying companies we found that we had a ton of consumer companies. We have a pretty broad range of companies." REITs comprise 22% of the portfolio, followed by consumer discretionary (16%), telecommunications (16%), financial services (10%), utilities (8%), banks (5%), consumer staples (5%), energy (5%), industrials (5%), insurance (3%), technology (3%) and health care (2%). International company and currency holdings break down among the U.S. (32%), Australia (24%), Great Britain (10%), Canada (6%) and Singapore (4%). The equal weighting "materially diminishes the risk of any one company cutting or significantly decreasing their dividends if the get into financial difficulty," del Ama says. A key selection criteria for both funds is not just current yields, but companies that have the ability to grow that yield.