NOBL - Dividend Aristocrats

[SeattleRocks]

Any thoughts on this fund? I like the idea of investing in stable dividend stocks and I read this week that this fund is also a good hedge for market downturns.

Anybody holding NOBL, any thoughts?

 

[Montecfo]

I own it and like it. Good solid high quality longterm holding

 

[24601NoMore]

I just checked Morningstar, and they're showing the fund to have a 3-yr 87% upside capture ratio and a 96% downside capture ratio. So, it may not be as much as a hedge for market downturns as one may think..

Also has a pretty high 3-yr Standard Deviation at 17.49. Category (Large Blend) STDEV is 18.87..Index (S&P 500) STDEV is 19.25..so not a huge difference compared to category and index..

Interestingly, max drawdown (1/1/20 - 3/1/20) was -23.3% for NOBL and -20.89% for the Category. So it appears to fall harder and faster than Large Cap Value in general..

ETA: 5-year upside/downside and STDEV are not that hugely different from 3- yr compared to category and index..twelve-month yield is also only 2.12%..

 

[RetireeRobert]

An alternative for mutual investing in companies with growing dividend streams:

DGRO

 

[target2019]

We use SCHD and SPYD.

I looked at yield, total return, holdings. If the yield is higher you're giving up some total return.

You could take 5 of the ETFs mentioned here and see what makes them tick. I've heard the promise of safer during downturn but I don't really see it.

 

[ERD50]

From a recent thread that refs another thread:


https://www.early-retirement.org/fo...not-or-something-else-107840.html#post2558672

Here you go, here's where it was discussed recently:

https://www.early-retirement.org/for...ml#post2515972

And here's the short link to the analyzer (update the time frame to JAN 2021):

https://bit.ly/2ZWbklN

The group of seven Div payer funds lagged, starting with $1M in July 2007 to Jan 2021, with a 3.5% annual inflation adjusted withdrawal rate from each and annual rebalancing (Note: The time period was constrained by the available data for iShares International Select Div ETF (IDV) [Jul 2007 - Jan 2021]. ):

70/30 Broad Market stocks/bonds: $1,000,000 _ $1,806,845
70/30 Div Sector stocks/bonds__: $1,000,000 _ $1,395,717

The div payer sector is more than $400K behind the broad market, while each is providing the same payout! That's not some small difference!

Back in that thread, I also looked at the 7 div payer funds separately, and only one outperformed the broad market. That's really bad odds. Why play this game?

You can plug NOBL into that site, it has a shorter history, but also under performs.

I've got some other things going on in my life right now, probably won't return to this thread. I've said it all before in those other posts and nothing changes. You can do the research yourself. This is a sector play with sector risk, and no apparent upside.The downside protection is a myth, the data does not back it up. What's the point?

-ERD50

 

[SeattleRocks]

From a recent thread that refs another thread:


https://www.early-retirement.org/fo...not-or-something-else-107840.html#post2558672



You can plug NOBL into that site, it has a shorter history, but also under performs.

I've got some other things going on in my life right now, probably won't return to this thread. I've said it all before in those other posts and nothing changes. You can do the research yourself. This is a sector play with sector risk, and no apparent upside.The downside protection is a myth, the data does not back it up. What's the point?

-ERD50

This is awesome. Thanks so much. Very helpful.

 

[ownyourfuture]

I've owned Vanguard Dividend Appreciation Index Shares (VIG) for about 10 years. The yield is slightly lower than NOBL, but the expense ratio is much lower.

According to Yahoo charts, it's 5 year return is 76.00% Vs 63.00% for NOBL.

Not sure if Yahoo charts include dividend reinvestment ?

"good hedge for market downturns"

I agree with ERD50. If the market craters, none of the mutual funds/ETFs mentioned in this thread will be a 'hedge'
They might go down a little less than a broad-based average, but if you're looking for a true hedge, look at something like VXX.

Good luck!

 

[SeattleRocks]

I've owned Vanguard Dividend Appreciation Index Shares (VIG) for about 10 years. The yield is slightly lower than NOBL, but the expense ratio is much lower.

According to Yahoo charts, it's 5 year return is 76.00% Vs 63.00% for NOBL.

Not sure if Yahoo charts include dividend reinvestment ?

"good hedge for market downturns"

I agree with ERD50. If the market craters, none of the mutual funds/ETFs mentioned in this thread will be a 'hedge'
They might go down a little less than a broad-based average, but if you're looking for a true hedge, look at something like VXX.

Good luck!

I bought VIG instead of NOBL with a just 10% of my post tax portfolio. I will take a look at VXX