Income Investors Skip VOO’s 1.09% Yield And Choose NOBL’s 68 Dividend Aristocrats Paying Twice As Much

1 week ago 7

Michael Williams

Thu, December 18, 2025 astatine 9:07 AM CST 4 min read

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NOBL yields 2.1% versus VOO’s 1.09% by tracking 68 Dividend Aristocrats with 25+ consecutive years of dividend increases.
NOBL uses equal-weighting methodology with 22.5% successful Industrials and 20.9% successful Consumer Staples to debar attraction risk.
SCHD offers 3.8% output with lone 0.06% disbursal ratio arsenic a higher-income alternate to some NOBL and VOO.
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While Vanguard 500 Index Fund ETF Shares (NASDAQ:VOO) dominates the astir fashionable ETF rankings with $1.5 trillion successful assets and an manufacture starring 0.03% disbursal ratio, income investors should see ProShares S&P 500Dividend Aristocrats ETF (NYSEARCA:NOBL) for superior currency flow. NOBL tracks 68 companies with 25+ consecutive years of dividend increases, yielding 2.1% versus VOO's 1.09%—nearly treble the income.

NOBL generates income exclusively from dividends paid by 68 blue-chip Dividend Aristocrats with proven records of raising dividends done aggregate economical cycles. The ETF uses equal-weighting methodology, with holdings ranging from 1.2% to 2.1%, preventing over-concentration portion maximizing vulnerability to accordant dividend payers crossed antiaircraft sectors including Industrials (22.5%) and Consumer Staples (20.9%).

The sustainability of NOBL's dividend depends connected its largest positions:

Albemarle Corporation (2.06% weighting) presents the astir hazard with antagonistic net of -$1.59 per stock owed to cyclical lithium pricing pressures. Despite this, the institution maintains its $1.62 yearly payout, exemplifying the Aristocrat committedness to maintaining dividends done impermanent headwinds.
Caterpillar (1.68% weighting) demonstrates aristocrat prime with 46.3% instrumentality connected equity, 14.3% nett margin, and $5.84 yearly dividend supported by $19.49 successful earnings. CAT's 30% payout ratio provides important information margin, portion $64.7 cardinal successful gross grew 9.5% year-over-year.
Johnson & Johnson (1.51% weighting) offers 2.37% output with 74% payout ratio—elevated but manageable fixed its 27.3% nett borderline and diversified healthcare portfolio. With 60+ years of consecutive dividend increases, JNJ's aristocrat pedigree is unmatched.
Walmart (1.56% weighting) and Procter & Gamble (1.33% weighting) diagnostic blimpish payout ratios of 32% and 60% respectively. Both make important escaped currency travel from recession-resistant businesses, supporting reliable dividend growth.