Dividend Aristocrats

Moderate Income

Companies that have raised dividends for 25+ consecutive years tend to be well-managed, cash-flow machines. This portfolio targets growing income with lower volatility than the broad market.

4
ETFs
3.1%
Aggregate Yield
$43.5B
Wtd Avg AUM

Holdings

Symbol Name Weight Price 1D 3M YTD Yield AUM
SCHD Schwab US Dividend Equity ETF 35% $31.63 ... ... ... 3.3% $89.9B
HDV iShares Core High Dividend ETF 25% $26.81 ... ... ... 14.8% $13.2B
NOBL ProShares S&P 500 Dividend Aristocrats ETF 25% $107.02 ... ... ... 2.1% $11.2B
DGRO iShares Core Dividend Growth ETF 15% $72.99 ... ... ... 2.0% $39.3B

Investment Thesis

Dividend growth investing is not about chasing the highest yield — it's about owning companies that consistently grow their payouts. A company that has raised its dividend for 25+ years has demonstrated it can generate cash through recessions, rate cycles, and competitive disruptions. These tend to be blue-chip businesses with strong balance sheets and sustainable competitive advantages. The academic evidence is compelling: dividend growers have historically outperformed both the broad market and high-yield stocks with lower volatility. SCHD leads the allocation because of its quality screen — it selects companies with strong fundamentals, not just high yields. The combination of SCHD, HDV, NOBL, and DGRO creates a diversified income stream that should grow 5-8% annually, providing a natural inflation hedge.

Portfolio Construction

SCHD Schwab US Dividend Equity ETF
35%
High-quality dividend growth stocks — screens for companies with strong fundamentals, consistent dividend history, and reasonable valuations. Top holdings include Coca-Cola, Verizon, and Broadcom.
Yield: 3.3% AUM: $89.9B
HDV iShares Core High Dividend ETF
25%
High dividend yield with broad diversification — focuses on established US companies paying above-average dividends. Heavier in energy and healthcare than SCHD, providing sector diversification.
Yield: 14.8% AUM: $13.2B
NOBL ProShares S&P 500 Dividend Aristocrats ETF
25%
S&P 500 Dividend Aristocrats — exclusively holds companies that have increased dividends for 25+ consecutive years. Equal-weighted, so smaller aristocrats get the same allocation as mega-caps.
Yield: 2.1% AUM: $11.2B
DGRO iShares Core Dividend Growth ETF
15%
Dividend growth with quality screen — targets companies with 5+ years of dividend growth and strong earnings quality. Adds a growth tilt to the income portfolio.
Yield: 2.0% AUM: $39.3B

Key Considerations

  • Dividend stocks can underperform in growth-driven markets when investors chase capital appreciation
  • Rising rates can make bonds more attractive than dividend stocks, pressuring valuations
  • Concentration in mature, slower-growing sectors like utilities, staples, and financials
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