Global X S&P 500 Dividend Aristocrats ETF | Global X ETFs (2024)

FAQs

What is the return of the S&P 500 dividend aristocrats? ›

Global X ETFs is a New York-based provider of exchange-traded funds that facilitates access to investment opportunities across the global markets. Founded in 2008, it has approximately $40 billion in managed assets, across more than 80 different products.

The SPDR Dividend Aristocrats ETFs source quality yield by focusing on companies with a long, consistent history of paying dividends.

Another way one may choose to invest in the Dividend Aristocrats Index is through investment products like ETFs. Many ETFs and index funds offer income-generating yields for investors, which can prove to be financially lucrative, predictable, and stable over the long term.

According to S&P Global, the Dividend Aristocrats have produced a better long-term return than the S&P 500 and done so with less risk. The Dividend Aristocrat list is refreshed each year, with new companies meeting the criteria being added while those failing it being removed.

The combination of three Dividend Aristocrats – Cardinal Health CAH, General Dynamics GD, and Archer Daniels Midland ADM – would allow investors to reap a monthly income stream. Below is a chart illustrating the performance of all three over the last year, with the S&P 500 blended in as a benchmark.

Vanguard Dividend Appreciation Index Fund ETF Shares is the best aristocrat and future aristocrat ETF I've ever found, with a perfect dividend growth record of 16 years without an annual dividend cut.

What is the difference between dividend aristocrats and dividend achievers? ›

Dividend aristocrats have 25 consecutive years of dividend growth, while dividend achievers have 10. Both are ideal options for the core of your portfolio. Dividend growers tend to be higher quality, cash flow generating companies, but growth rates can be relatively low.

While reinvesting dividends can help grow your portfolio, you generally still owe taxes on reinvested dividends each year. Reinvested dividends may be treated in different ways, however. Qualified dividends get taxed as capital gains, while non-qualified dividends get taxed as ordinary income.

The historical average yearly return of the S&P 500 is 9.88% over the last 20 years, as of the end of April 2024. This assumes dividends are reinvested. Adjusted for inflation, the 20-year average stock market return (including dividends) is 7.13%.

The Aristocrats index year-to-date return trails the overall S&P 500's 20.9%. However, for all of 2022, the Aristocrats returned -6.2%, outperforming the S&P 500 by 11.9 percentage points. Since the Aristocrats index's 1990 inception, it has an annualized 11.6% return vs. 10.2% for the S&P 500.

The S&P High Yield Dividend Aristocrats^TM Index is designed to measure the performance of the highest dividend yielding S&P Composite 1500 Index constituents that have followed a managed-dividends policy of consistently increasing dividends every year for at least 20 consecutive years.