Dividend Royalty

08/01/2016 9:00 am EST

Focus: ETFs

Doug Fabian

Editor, Successful ETF Investing, ETF Trader's Edge, Weekly ETF Report, and ETFU.com

This exchange-traded fund offers income by tapping into blue-chip stocks that have paid rising dividends for a number of years, notes fund expert Doug Fabian, editor of The Successful ETF Investor.

That’s why it is called the S&P 500 Dividend Aristocrats ETF (NOBL). It seeks to include only the best yield-based S&P stocks that have long, consistent records of hiking dividends.

Every single one of NOBL’s holdings have consistently raised its dividends for at least 25 years running, and the 51 holdings are weighted on near-equal terms rather than by market cap or any other measure.

The result is a fund with low volatility and strong relative performance. Indeed, the fund’s performance during the past 12 months is a particularly strong demonstration of how NOBL can be more powerful than the S&P 500.

The yield for this fund hovers around 2%, which is a nice bonus, while its expense ratio sits at 0.35%. Currently, assets managed for this fund clock in around $67.5 billion.

All of the fund’s top holdings are weighted about equally, with near 2% of total assets allocated to each.

Some of NOBL’s more familiar holdings are AT&T (T), Johnson & Johnson (JNJ), Exxon Mobil (XOM), Procter & Gamble (PG) and The Coca-Cola Company (KO).

If you’re looking for an investment that offers relative stability and also has the capacity to provide some outstanding performance, you may wish to include S&P 500 Dividend Aristocrats ETF in your search for the right fund.

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By Doug Fabian, Editor of The Successful ETF Investor

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