Target, the struggling retailer announced a Thursday dividend hike. This keeps its stock within an exclusive group that has been a wise investment this year. This marks 51 consecutive years where Target has increased its cash dividend payout, at an average of 12.65% per year, according to data S & P Global. Target is a dividend aristocrat because of this streak. The dividend aristocrats index from S & P Dow Jones Indices includes stocks in the S & P 500 that have hiked their payouts for at least 25 consecutive years. Investors tend to look to these reliable payers during times of volatility in the market. The ProShares S & P 500 Dividend Aristocrats ETF (NOBL) that tracks the index has fallen about 7% this year but is still easily outperforming the S & P 500. This success is even though Target has fallen more than 30 percent this year. Long-term, the fund is a strong performer, even though it doesn’t hold many Big Tech stocks which have powered the market over much of the last decade. Over the past five years, the ProShares fund is up 56%, slightly trailing the S & P 500 on an average basis. It has 64 holdings and a distribution yield at 1.5%. The expense ratio is 0.35%. The fund’s largest holdings as of June 8 are listed below. Source: CNBC, ProShares Many energy companies are among the fund’s top performers, such as Chevron and Exxon Mobil. This could prove to be an excellent news for investors seeking income. Energy companies often state that their main focus is on cash flow generation and shareholder returns, despite the rise in oil prices. A number of stock holdings are tied to chemicals, such as paint maker Sherwin-Williams (Made in Albemarle) and manufacturer Albemarle (Made in Sherwin-Williams). Albemarle’s year has been positive, while Sherwin Williams has struggled. One stock in the fund that has gotten praise from Wall Street in recent weeks is Air Products & Chemicals . Atlantic Equities and JPMorgan upgraded Air Products & Chemicals last month.
