S&P 500 Dividend Aristocrats is an index for companies that have increased their dividends every year for 25 years and are included in the regular S&P 500. These are stable companies such as Coca Cola, Johnson & Johnson, etc. These types of companies have not performed nearly as well as tech companies or stock market indices in general in recent years. Over longer periods of time, they have performed well and actually better than the broad stock market index S&P 500. I am convinced that they are a reasonable investment in the long term and this period of underperformance in the near future is completely normal. Sometimes they perform better than other indices and sometimes weaker, but in the long term, such as 10-20 years, they have always been a reasonable investment.
In the US, you can invest in these companies via an ETF that tracks the S&P500 Dividend Aristocrats index. That ETF has the ticker NOBL. There is also a fund with the ticker KNG that invests in those companies but also uses options on a small portion of the portfolio. The two funds are shown in the graph above.
In the EU, there has not been a fund before that tracks these companies. There is a fund from SPDR that many people think is this thing but it is not really. Anyhow, KNG in the US has come to the EU. I will started investing in it with small amounts. Making a slightly larger purchase and weighting it around 1 percent of the portfolio slowly. As I am adjusting my portfolio, instead of buying these individual sotcks, I can buy a broader index for slight fees, which gives diversification too. I love the concept of Dividend Aristocrats with large, healthy companies that have increased their dividends every year for at least 25 years.
KNG has been around since 2018 in the US and has performed close to NOBL there. I like this approach in KNG that they use options to generate even higher dividends. Total fees in KNG here in the EU are 0.77 percent. It is high, but for a fund with options that are actively managed, it is not completely crazy. Considering that there are also no other funds in the EU that provide exposure to these companies, you can also be lenient for that reason. The fund places options against 20-25 percent of the portfolio with the goal of generating around 8-9 percent direct return at an annual rate. The dividend is paid monthly and the first dividend has started in December 2025.
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