With increasing geopolitical pressures, major monetary policy changes, slowing economic growth, overvalued stock markets, poor job markets, and high inflation, these are uncertain times for investors. This has reduced investors’ appetite for risk and increased their desire for safer investments, especially dividend stocks and ETFs.
Equity ETFs typically invest in the stocks of large, stable companies that can be relied upon to generate steady income and strong returns through most market environments.
Will AI create the world’s first trillionaire? Our team just published a report on a little-known company, called “Essential Dependency” that provides critical technology to both Nvidia and Intel. Continue »
There may not be a more stable dividend than an ETF ProShares S&P 500 Dividend Aristocrats ETF (NYSEMKT: NOBL ). It’s all right in the name – it invests in large-cap stocks that have consistently increased their dividends for at least 25 years or longer. It doesn’t get more stable than this.
It can certainly provide consistent dividend income, but can it make you a millionaire in retirement?
The ProShares S&P 500 Dividend Aristocrats ETF is the only one that invests only in Dividend Aristocrats® (the term Dividend Aristocrats is a registered trademark of Standard & Poor’s Financial Services LLC). As of February 1, the ETF had about 69 stocks, all of which had consistently increased their dividends for at least 25 years. The average consecutive years of dividend growth was 43 years.
The ETF is equally weighted, meaning that all 69 stocks in the portfolio have roughly the same weight. Some include long dividend payers coca cola At the age of 63 the goal At the age of 54, and S&P Global At age 52 — All dividend kings, or companies that have raised their dividends for 50 years or more.
This ETF is specifically designed for investors who want to balance their portfolios with an all-weather, risk-averse fund that beats the market in tough periods. For example, the NOBL ETF has a total annual return of 8% with dividend reinvestment, compared to S&P 500 (SNPINDEX: ^GSPC)which is basically flat YTD.
However, its long-term returns are lower than the large-cap benchmark. Over the past five years, NOBL has averaged an annualized return of 9.1%, compared to 14.4% for the S&P 500. Over the past 10 years, NOBL has averaged a return of 10.6% compared to 15.1% for the S&P 500.
Investing in the ProShares S&P 500 Dividend Aristocrats ETF is smart in any market because it adds much-needed balance and stability to a portfolio. And in a volatile market, it becomes even more valuable.
