The Top Dividend Aristocrats ETFs

Published on
30th June 2021
Stock mentioned in this article
Div. yield
Annual dividend
Health Care

Sometimes picking individual dividend stocks is difficult, time-consuming, and often confusing. ETFs allow anyone to invest in a basket of stocks that are diversified in their respective industries or fundamentals. By investing in a basket of stocks, you lower the risk of dividend payments being significantly cut if one of the companies fails, and also reduce the chance of having to reposition your portfolio in the future.

iShares Core High Dividend ETF (NYSEARCA: HDV)

This high dividend ETF follows the investment results of Morningstar® Dividend Yield Focus IndexSM. This ETF is built around high-paying dividend stocks in the U.S. markets. The 5-year dividend growth for this ETF is 6.62%. The dividend has grown over time however, the dollar amount isn’t consistent every quarter. The last quarterly dividend payment was $0.81 per share and in the past couple of years, it has bounced around $0.75 and $0.923 per quarter. The top 3 holdings are very established corporations with fairly good dividend track records, here are the statistics.

  • Exxon Mobil Corporation (XOM) with 5-year dividend growth of 4.33%.
  • JPMorgan Chase & Co (JPM) with 5-year dividend growth of 20%.
  • Johnson & Johnson (JNJ) with 5-year dividend growth of 6.07%.

Each of these companies has continued to maintain and increase its dividends over time. What’s critical to point out, is that many of the top positions in this ETF are dividend aristocrats. Johnson & Johnson (JNJ) and Exxon Mobil Corporation (XOM) have both paid a dividend for 25 or more consecutive years, this is what makes them dividend aristocrats. Overall, dividend aristocrats are a great way to diversify your passive income portfolio for the long term.

Building a portfolio is already difficult on its own, but tracking it shouldn’t be. Make sure to track your portfolio performance and statics with ease here.

iShares Core High Dividend ETF
3.46% dividend yield
$101.53 per share

The investment seeks to track the investment results of the Morningstar® Dividend Yield Focus IndexSM composed of relatively high dividend paying U. S. equities. The fund generally will invest at least 90% of its assets in the component securities of the underlying index and may invest up to 10% of its assets in certain futures, options and swap contracts, cash and cash equivalents.

Exxon Mobil Corporation
4.66% dividend yield
$74.93 per share

Exxon Mobil Corporation explores for and produces crude oil and natural gas in the United States and internationally. It operates through Upstream, Downstream, and Chemical segments. The company is also involved in the manufacture, trade, transport, and sale of crude oil, natural gas, petroleum products, petrochemicals, and other specialty products; and manufactures and sells petrochemicals, including olefins, polyolefins, aromatics, and various other petrochemicals.

JPMorgan Chase & Co
2.59% dividend yield
$146.53 per share

JPMorgan Chase & Co. operates as a financial services company worldwide. It operates in four segments: Consumer & Community Banking (CCB), Corporate & Investment Bank (CIB), Commercial Banking (CB), and Asset & Wealth Management (AWM). The CCB segment offers deposit and investment products and services to consumers; lending, deposit, and cash management and payment solutions to small businesses; mortgage origination and servicing activities; residential mortgages and home equity loans; and credit card, auto loan, and leasing services.

Johnson & Johnson
2.50% dividend yield
$167.63 per share

Johnson & Johnson researches and develops, manufactures, and sells a range of products in the health care field worldwide. It operates through three segments: Consumer Health, Pharmaceutical, and Medical Devices. The Consumer Health segment offers baby care products under the JOHNSON'S and AVEENO Baby brands; oral care products under the LISTERINE brand; skin health/beauty products under the AVEENO, CLEAN & CLEAR, DR.