The average payout ratio of NOBL’s top-10 holdings at the end of the second quarter was just 37.9%. That is above the 32.3% payout ratio seen on the S&P 500, but that is well below the benchmark U.S. index’s payout ratio of the 1980s and the early 1990s, indicating there is room for healthy dividend growth, which should benefit NOBL.
Bolstering the case for NOBL is that the S&P 500 Dividend Aristocrats Index has been less volatile than the S&P 500 while outperforming the benchmark index over the trailing three- and five-year periods, according to ProShares data.
NOBL charges 0.35% per year and is a new addition to the Schwab ETF OneSource commission-free exchange traded funds platform.
ProShares S&P 500 Aristocrats ETF
ETF Trends editorial team contributed to this post.