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NOBL: Outstanding Dividend Growth, Market-Beating Shareholder Returns, Compelling Price And Valuation


  • The Dividend Aristocrats offer investors outstanding dividend growth, dividend yields, and market-beating shareholder returns.
  • NOBL provides investors an easy and cheap way to invest in the Dividend Aristocrats.
  • Recent underperformance and price weakness present something of a buying opportunity for investors.
  • Looking for a portfolio of ideas like this one? Members of CEF/ETF Income Laboratory get exclusive access to our model portfolio. Get started today »

As economic and market conditions improve, there are fewer and fewer compelling investment opportunities available for investors. The Dividend Aristocrats are some of the few exceptions.

These stocks are particularly strong investment opportunities due to their outstanding dividend growth track record, good dividend yields, and market-beating performance. The Dividend Aristocrats are also trading at cheap prices and with historically low valuations, presenting a strong buying opportunity and entry point for investors.

The ProShares S&P 500 Dividend Aristocrats ETF (BATS:NOBL) provides investors with an easy and cheap way to invest in the Dividend Aristocrats, and is a strong buy.

Fund Basics

  • Sponsor: ProShares
  • Dividend Yield: 2.20%
  • Expense Ratio: 0.35%
  • Total Returns (NAV) CAGR since Inception: 9.5%
  • Holdings: 66

Investment Thesis - Outstanding Dividend Yield and Dividend Growth, Market-Beating Shareholder Returns

NOBL's investment thesis is remarkably simple. The fund, and Dividend Aristocrats more generally, offer investors outstanding dividend yields and dividend growth, which combine to create market-beating shareholder returns.

Let's take a quick look at each of the points above.

Outstanding Dividend Growth

Dividend Aristocrats are all S&P 500 constituents that have increased their dividends for twenty-five consecutive years or more. Decades-long track records of dividend growth such as these are, in my opinion, evidence of a company's strong business model and strategy, sustainable earnings and cash flow growth, and shareholder-friendly management team. No stock or dividend is completely safe, but the Dividend Aristocrats are significantly safer than most.

NOBL itself has also seen outstanding dividend growth in the past, although there is some noise here as the dividends are a bit irregular. Dividend growth has averaged 12.34% for the past five years, quite a bit higher than the 7.93% dividend growth for the S&P 500. Dividend growth seems to be accelerating, with NOBL's dividend growing by a massive 43% quarter to quarter this past quarter. Growth is likely to

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This article was written by

Juan de la Hoz profile picture
CEF/ETF income and arbitrage strategies, 8%+ portfolio yields

Juan has previously worked as a fixed income trader, financial analyst, operations analyst, and economics professor in Canada and Colombia. He has hands-on experience analyzing, trading, and negotiating fixed-income securities, including bonds, money markets, and interbank trade financing, across markets and currencies. He focuses on dividend, bond, and income funds, with a strong focus on ETFs, and enjoys researching strategies for income investors to increase their returns while lowering risk.


I provide my work regularly to CEF/ETF Income Laboratory with articles that have an exclusivity period, this is noted in such articles. CEF/ETF Income Laboratory is a Marketplace Service provided by Stanford Chemist, right here on Seeking Alpha.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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