"While Vanguard 500 Index Fund ETF Shares ( NASDAQ:VOO) dominates the most popular ETF rankings with $1.5 trillion in assets and an industry leading 0.03% expense ratio, income investors should consider ProShares S&P 500Dividend Aristocrats ETF ( NYSEARCA:NOBL) for superior cash flow. NOBL tracks 68 companies with 25+ consecutive years of dividend increases, yielding 2.1% versus VOO's 1.09%-nearly double the income. NOBL generates income exclusively from dividends paid by 68 blue-chip Dividend Aristocrats with proven records of raising dividends through multiple economic cycles."
"The ETF uses equal-weighting methodology, with holdings ranging from 1.2% to 2.1%, preventing over-concentration while maximizing exposure to consistent dividend payers across defensive sectors including Industrials (22.5%) and Consumer Staples (20.9%). The sustainability of NOBL's dividend depends on its largest positions: Albemarle Corporation (2.06% weighting) presents the most risk with negative earnings of -$1.59 per share due to cyclical lithium pricing pressures. Despite this, the company maintains its $1.62 annual payout, exemplifying the Aristocrat commitment to maintaining dividends through temporary headwinds."
ProShares S&P 500 Dividend Aristocrats ETF (NOBL) yields 2.1%, nearly double Vanguard 500 Index Fund ETF (VOO)'s 1.09%, and tracks 68 companies with 25+ consecutive years of dividend increases. The ETF derives income exclusively from dividends and uses equal-weighting, with holdings between 1.2% and 2.1% to limit concentration while boosting exposure to reliable dividend payers. Sector allocations emphasize Industrials (22.5%) and Consumer Staples (20.9%). Major holdings include Albemarle (2.06%) facing negative earnings but keeping its $1.62 payout, Caterpillar (1.68%) with strong profitability and a low payout ratio, and Johnson & Johnson (1.51%) with a higher payout ratio supported by robust margins.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]