Want to collect a good dividend and diversify in the process? One exchange-traded fund (ETF) that focuses on safe dividend growth stocks is the ProShares S&P 500 Dividend Aristocrats ETF (CBOE:NOBL). It yields 1.9% which is slightly better than the S&P 500 average of 1.5%.
The fund also has many safe dividend stocks in its portfolio which have impressive track records for dividend growth. The largest holdings in the fund also account for less than 2% of its total weight, making it diverse and not dependent on a few holdings.
Dividend investors will be familiar with some of its top holdings, including oil and gas giant Exxon Mobil (NYSE:XOM), which has been increasing its dividend payments for 40 consecutive years. Big-box retailer Walmart (NYSE:WMT) is another solid dividend stock and its dividend streak hit 50 consecutive years in 2023, marking a huge milestone for the stock. 3M (NYSE:MMM), which makes industrial and consumer goods, has an even longer streak of more than 60 consecutive years of increases and it too is on this list.
Investors are getting a good mix of dividend stocks with this ETF as it has positions in 66 companies. And with an expense ratio of 0.35%, it’s not a terribly expensive fund, either. Approximately one-quarter of the stocks are in industrials and slightly less are in consumer staples; both industries should provide investors with some good long-term stability.
Year to date, the Dividend Aristocrats ETF is up over 3% and when including the dividend, its total returns are slightly higher at around 4.5%. For long-term investors, this can be a relatively safe investment to store your money into.