Income investors are always attracted to high yield stocks & ETFs that pay a consistent dividend, giving you a predictable, growing income source over time. One of the best ways to own a collection of some of the best dividend-paying stocks is buying purchase the ProShares S&P 500 Dividend Aristocrats (NOBL).
What is NOBL ETF?
This high yield ETF tracks S&P Dividends Aristocrats Index that tracks companies who have grown their dividend for the past 25 years. According to Realty Income, owning stocks or ETFS that increase their dividend annually is the secret to higher stock marketing returns.
The Magic of Rising Dividends
A perfect example of the power of rising dividends is Warren Buffett’s infamous purchase of Coca Cola (KO) stock in 1987. Buffett paid just $2.50 per share back then and now earns a ridiculous high yield of over 60+% from his original investment. Even if he no longer purchases any additional shares, those existing shares continue to earn dividends through the power of compound interest.
NOBL ETF Review
Let’s take a quick look at some of the highlights in this legendary high yield ETF:
- 12%+ Annual Return since inception
- Total of 58 holdings
- 2.5% annual yield
- Top holdings include Aflac, Walmart and Medtronic
- Low .38% expense ratio
I love this ETF as a simple way to own a collection of stocks with rising dividends. This ETF has returned 12% annually since its inception in 2013. It’s a safe yet smart way to invest your money in companies that return money to shareholders. These are also some of the best ETFs to own when the stock market is going down (aka bear market). Usually, dividend paying stocks perform better in down markets because the quarterly income provides a more stable stock market price than non-dividend paying stocks.
While his background is mostly related to trading stocks, he recently gained interest in real estate crowdfunding with Fundrise.