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Just last year, surveyed Americans said that safe Golden Years carried a retirement-savings price tag of $1.7 million. Just one year later — thanks to surging uncertainty around the world and the gnawing of inflation — that estimate has surged to $1.8 million… a $100,000 jump in a single year.
With retirement nest eggs averaging a paltry $65,000, that retirement lifeboat seems far away indeed.
But here’s the real kicker.
According to the latest Gallup data, 39% of Americans don’t own stocks.
Like at all.
Which means they aren’t investing in the one asset that can help them swim for that sanctuary.
And when you don’t own stocks, your return on investment (ROI) is always going to be the same: Zero.
Now, I get why this is happening. Especially now — when stocks are getting hit again… people see stock prices seesawing each day.
If we don’t see immediate results or see temporarily discouraging results, we feel like that “comfortable retirement” will always seem to be just out of reach.
That’s a big reason for the whole “work until you die” movement that’s especially resonating with Gen-Xers.
But it doesn’t have to be that way.
Small steps taken consistently can and will add up. And that brings me to a strategy – and one investment — that will put you on the right side of those Gallup poll numbers.
I’m talking about income, dividends, and the “royalty” of both.
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Meet the ‘Royalty’ of Dividend PayoutsIf you want to create wealth, you can’t do it without income — it provides streams of cash that come your way even while stock prices whipsaw in unpredictable ways.
As boring as they seem, dividends are one great source of those cash streams. That’s especially true of Dividend Aristocrats — S&P 500 companies that have boosted payouts every year for at least the last 25 years.
And there are ETFs that target these cash-stream royalty companies.
ETFs hold a “basket” of companies, mitigating risk so that a stumble by one doesn’t torpedo the whole fund. You may not get the same gains that a single zooming stock will deliver. But for playing the long game — the essence of retirement saving — ETFs can help build that retirement nest egg.
Want an example?
Check out the ProShares S&P 500 Dividend Aristocrats ETF (NOBL) — the only opportunity (according to ProShares) exclusively focused on the Dividend Aristocrats.
Those companies can do that because of strong management teams, proven business models, and the ability to generate a ton of cash flow.
- Lowe’s Companies Inc. (LOW)
- Sherwin-Williams Co. (SHW)
- Johnson & Johnson (JNJ)
- AFLAC Inc. (AFL)
- McDonald’s Corp. (MCD)
While price appreciation isn’t the main focus of an income-generating investment like NOBL, since inception in 2013, the NOBL stock chart has mostly looked like walking up a staircase, with returns of 183%.
Every $10,000 invested since the inception of the ETF is now worth over $28,000.
Not bad for something filled with “boring” companies selling tools, paint, headache medicine, insurance, and burgers.
And here’s another wealth-boosting benefit of NOBL — its dividend payout.
Compared to that microscopic average money market yield of 0.23%, NOBL’s yield is 1.88%… more than eight times larger.
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Now, I know there are other dividend stocks with higher yields, and one ETF isn’t going to be enough to fully put someone’s retirement back on track.
But it’s an entry point — to start generating income and receive dividend payouts to get you on the path to building that retirement nest egg.
NOBL triggered an Entry Signal on August 17, meaning our system classifies it as an investment worthy of your investable dollars.
Our tools also classify it as “low risk” at 13.01%:
- Up to 15% = Low Risk
- 15%-30% = Medium Risk
- 30%-50% = High Risk
- 50% and above = Sky-High Risk
Because when it comes to building wealth — and generating income — dividends are a front-and-center cash-stream strategy… albeit one that’s a bit more about passive investing.
There are also more “active” approaches to income generation — strategies that involve more frequent transactions, but with our help here really are still relatively simple.