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Look to NOBL’s Growing Dividends in Volatile Rate Environment

Few market watchers would have predicted how much volatility markets would have seen at the start of this year. Close Fed observers, for example, were likely expecting a potential new Fed chair to consider cutting rates. Now, that prospect feels much farther off. Indeed, as government debt grows and macroeconomic pressures and inflation reemerge, investors face a complicated rate environment. Dividends can provide a solution.The current environment has put many investors’ fixed income plans in a bit of a predicament. The recent back-up in yields has resulted in poor performance for bond strategies. With that volatility rising, it may instead be worth considering how dividends in a fund like NOBL can offset some of that volatility. According to recent analysis by ProShares Head of Investment Strategy Group Simeon Hyman, “the recipe has been clear since the beginning of the Iran war.” “The longer the war and the longer oil prices remain elevated, the greater the risk of broader inflation and rising interest rates,” he said. Hyman pointed to stocks as a source of resilience, especially amid strong earnings in Q1. While not all stocks are created equal, he noted, there are attractive ETF options to consider. The ProShares S&P 500 Dividend Aristocrats ETF (NOBL B-) provides a strong example of a fund that really leans on durable dividend growers. NOBL charges a 35 basis point fee to target firms that have consistently grown their dividends. Specifically, it looks at firms that have increased their dividend payments over the last 25 years. The result is an equally weighted portfolio of 69 high-quality companies that have historically weathered market turbulence. That has helped NOBL deliver for investors. The ETF provided a 2.59% dividend yield as of March 31, and has grown its distribution at a compound annual growth rate of over 10% per year since its inception, according to ProShares data. See more: Get Durability & Upside in Small-Cap Dividend Growth ETF SMDV By investing exclusively in the S&P 500 Dividend Aristocrats, NOBLhas delivered strong risk-adjusted returns enabling investors to grow and preserve wealth over time.  For investors looking for growing dividends in a turbulent rate environment, NOBL may be one to consider. For more news, information, and analysis, visit the Market Insights Content Hub.

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