In the stock market, some investors are looking for a stable cash flow, so investing in dividend stocks can be a good option.

Dividend stocks can also play a role as a haven, especially in times of market turmoil.

However, stocks are booming in the US stock market, so how do you find it difficult to choose stocks with stable information?

This is an opportunity to quickly find quality earning stocks by telling the big house about the best stocks.

What are Dividend Nobles?

The S&P 500 Dividend Aristocrats is actually an indicator called the S&P 500 Dividend Aristocrats in English.

The index, published in 2005, is mainly used to track the increase in the share price performance of the companies that issue shares every year for at least 25 years in a row. In 2023, 68 Stocks were selected.

Companies that can become share-weighted are generally recognized as having relatively stable earnings. Because we have a long history of informing and giving back to our shareholders, our value is based on trust.

The condition of being a dividend aristocrat

BECOMING A DIVIDEND ARISTOCRAT IS NOT EASY, THERE ARE STRICT FILTERING CRITERIA:

• First of all, it must be a constituent stock of S&P 500

• Dividends have been increasing every year for the past 25 years

• Market Cap Over $3 billion

• Average Daily Trade Over 3 Months to Less Than $5 million

Companies that are able to maintain and increase the news for a long time are less visible, because the company's business needs to be extremely stable, so that our products or services are generally not affected by the economic downturn, there is an opportunity to continue to grow shares.

Therefore, the preferred stock is usually a quality company in a different Industry, Blue Consortium. The business model of these companies is mature, capable of generating stable profits and cash flows, and more often than not returns to the Shareholders in the form of profits and shares.

Investors are fond of Coca-Cola, McDonald's, Walmart, which are typical shareholder representatives.

What companies does Dividend Nobles own in 2023?

In 2023, the Dividend Aristocrats Index includes68Only constituent stocks, these companies are distributed across industries.

Investors can choose a number of listed shares based on different Indicators, one of which is the Dividend Ratio.

Since a company's share price is non-volatile and the company's message is relatively stable, the dividend preferred stock ratios will be different at different points in time.

AS OF NOVEMBER 2, 2023, INVESTORS CAN FIND THE TOP 10 DIVIDEND NOBLES IN THE DIVIDEND RANKINGS ACCORDING TO THE LATEST DIVIDEND RANKINGS, WHICH ARE:

THE TOP CHART SHOWS THAT THE HIGHEST ROI IS THE RETAIL PHARMACEUTICAL COMPANY, WALGREENE COMBINED (WBA), WITH A SHARE RATIO OF 8.93%, WITH LEGG AND 3M COMPANIES (MMMM) RANKED 2 AND 3, RESPECTIVELY, WITH A TURNOVER OF 7.74% AND 6.50%.

However, high-dividend income stocks are sometimes and definitely a good investment option.

The increase in the dividend yield of stocks may be related to the fall in the share price. A drop in the share price may affect the Company's operating situation, while profits will slide, but the company may be at risk of a lower dividend.

Therefore, when investors dive into investment decisions, Fundamental Analysis must be integrated and market analysis factors are integrated.

How to invest dividends nobles?

Dividend nobles can be a good choice for those investors looking for stable cash flow.

However, Stock Premium has more than 60 stocks, how to choose?

Although the companies in the dividend aristocracy are blue-chip stocks with a record of stable dividend distributions, the risk is relatively low, it does not mean that there is no risk.

Therefore, investors can spread the risk further by diversifying their investments rather than just investing in one or two Stocks.

Dividend Aristocrats ETF

Diversion-weighted ETFs are a foolproof way to spread risk. Equity Tier ETFs are a fund that tracks the stock preference index.

S&P Dow Jones Index' official web shows that there are currently only two ETFs that track dividends on the US stock market, namely ProShares P500 Dividend Trust ETF (NOBL) and FT Cboe Vest S&P 500 Dividend Aristocrats Target Income Series Solutions KNG).

It is worth noting that from the way the index loses, it is impossible to outperform the S&P 500 Index after losing stocks for more than 10 years. Analyst at Morningstar said the performance of Dividend Preferred ETFs in some low-market years could be relatively stable compared to 2022.

Data Source:S&P 500 Dividend Aristocrats Index Factsheet

But keep in mind that not all investments can be completely risk-averse, and so is investing in dividend aristocratic ETFs.

In times of bad behavior, the ETF share price can fluctuate dramatically, leading investors to take losses. Moreover, equity ETFs can be in a situation where they do not win big, and investors need to tailor their investment strategy based on their investment needs.

Advantages and disadvantages of investment dividends nobles

Advantages:

• Stable cash flow: Dividend nobles provide a reliable source of dividends. Whether in a stock market downturn or during a recession, they provide investors with stable dividend cash flow.

• Financial strength: Dividend aristocrats, these companies have insisted on increasing dividends every year for the past 25 years. This shows that they can still maintain financial stability in the worst macroeconomic conditions. This is a good sign that these companies are able to weather the weather in the market.

Disadvantages:

• Low growth: Dividend aristocrats are usually old-label companies that have been in the market for a long time, so their growth opportunities are relatively limited. This means that they may not be able to offer the high growth opportunities that emerging companies do.

• Limited capital gains: If you are primarily concerned with capital gains, the stock preference class may not be the best choice. Stocks are not usually exposed to high risk, and high-return investments tend to result in large capital gains.

• Taxable on Shares: As soon as you calculate long-term stock holdings to avoid capital gains tax, annual dividend payments will still be subject to tax. This may reflect your total return on investment, so you need to factor in tax revenue in your investment decision.

In sum, Dividend Nobles offers an attractive option for investors looking for reliable dividend income, but there are also some limitations. Investors need to balance these pros and cons to ensure they meet their specific financial goals and risk tolerance.