In 2025, the investment landscape presented a varied picture for dividend-focused portfolios. The ProShares S&P 500 Dividend Aristocrats ETF, known by its ticker NOBL, experienced a more modest growth of 6.27% year-to-date. This performance contrasted sharply with the broader market, as the SPDR S&P 500 ETF (SPY) surged ahead with an impressive 17.8% gain over the same period. Despite this overall divergence, certain individual Dividend Aristocrats managed to deliver substantial returns, showcasing their resilience and value. Companies such as CAT, CAH, CHRW, and IBM stood out, each achieving double-digit growth. Looking ahead, the average dividend growth for the Aristocrats in 2025 is estimated to be around 5.27%, although there's an anticipation that this rate might not exceed that of 2024. A detailed examination, employing dividend yield theory and growth forecasts, has pinpointed 30 Aristocrats that appear to be undervalued and are projected to yield an annualized long-term return of at least 10%.
September proved to be a challenging month for the Dividend Aristocrats, with the ProShares S&P 500 Dividend Aristocrats ETF (NOBL) closing with a 1.68% decline. This dip underscored a period of underperformance when compared to the broader S&P 500. However, the year-to-date figures still indicate a positive, albeit slower, growth trajectory for NOBL at 6.27%, which suggests underlying stability despite short-term fluctuations.
Amidst the broader market trends, a select group of Dividend Aristocrats defied the general underperformance. Companies like Caterpillar (CAT), Cardinal Health (CAH), C.H. Robinson Worldwide (CHRW), and IBM emerged as strong performers. These firms not only navigated market volatility but also delivered robust double-digit returns, highlighting their individual strengths and strategic advantages within their respective sectors.
The projected dividend growth for the Aristocrats in 2025 averages 5.27%. While this indicates a healthy continuation of dividend increases, there's a cautious outlook that this rate may not surpass the growth observed in 2024. This perspective suggests a maturation in dividend growth, where consistency might be prioritized over accelerated expansion, aligning with the conservative nature often associated with Dividend Aristocrats.
Utilizing a comprehensive analysis based on dividend yield theory and growth estimates, thirty specific Dividend Aristocrats have been identified as both potentially undervalued and capable of generating significant long-term returns. These companies are forecasted to achieve an annualized return of at least 10%, making them attractive prospects for investors seeking stable income and capital appreciation in a discerning market.
For the year 2025, an in-depth review of the ProShares S&P 500 Dividend Aristocrats ETF (NOBL) revealed a year-to-date gain of 6.27%. This performance, while positive, trailed the SPDR S&P 500 ETF (SPY), which saw a more substantial increase of 17.8%. Despite the overall trend, individual components of the Aristocrats index, including CAT, CAH, CHRW, and IBM, demonstrated remarkable strength with double-digit returns. The average dividend growth across the Aristocrats is projected at 5.27%, with most entities continuing to raise their payouts. This analysis also highlighted 30 Dividend Aristocrats that, based on current valuations and growth forecasts, present opportunities for long-term investors, offering an anticipated annualized return of 10% or more.