Target + Pepsi + AbbVie + NOBL: A Dividend Aristocrats Portfolio Built for Rising Income

· 4 min read
Portfolio analysis dashboard showing TGT, PEP, ABBV, and NOBL with dividend growth trend, yield on cost, and annual dividend income
A dividend-growth focused portfolio using Target, PepsiCo, AbbVie, and the Dividend Aristocrats ETF (NOBL) to aim for steadily rising income.

Portfolio Overview

This portfolio is built around high-quality dividend growers with strong track records of increasing income over time. It combines Target (TGT), PepsiCo (PEP), and AbbVie (ABBV) with the ProShares S&P 500 Dividend Aristocrats ETF (NOBL) to add diversification across companies with decades of uninterrupted dividend increases.

TGT and PEP provide reliable consumer-driven cash flow supported by resilient global brands. ABBV enhances income with strong pharmaceutical earnings and consistent dividend growth. NOBL strengthens the foundation by spreading exposure across long-term dividend raisers — a classic Dividend Aristocrats approach focused on durability and consistency.

Dividend Growth Trend

Dividend growth trend chart for TGT, NOBL, PEP, and ABBV over the last five years showing a clear long-term upward trend in dividend income
A five-year view of the dividend growth trend shows a clear long-term direction across the holdings, reinforcing the portfolio’s focus on rising income over time.

Here’s the dividend growth trend for these holdings over the last five years.

The long-term growth trend is very clear with these holdings. That’s the key benefit of a dividend growth strategy: even without adding new money, a portfolio built on dividend raisers can steadily increase its income stream over time — which can gradually lift yield on cost and improve long-term cash flow.

Portfolio Snapshot

Quick snapshot panel showing yield on cost 2.9%, annual income $2,842, monthly income about $237, income growth roughly 7% per year over five years, and average ETF expense ratio 0.09% (~$141/year)
Quick snapshot: <strong>2.9% yield on cost</strong> producing <strong>$2,842/year</strong> (about <strong>$237/month</strong>), with income growing roughly <strong>7% per year</strong> over five years and an average ETF expense ratio of <strong>0.09%</strong> (~$141/year).

Here’s the quick snapshot for this portfolio:

  • Yield on cost: 2.9%
  • Annual dividend income: $2,842 per year
  • Monthly dividend income: about $237 per month
  • Dividend income growth: roughly 7% per year over five years
  • Average ETF expense ratio: 0.09% (about $141 per year in fees)

This is a dividend growth profile: a moderate starting yield today, paired with a focus on steadily rising income as dividends grow over time.

Income Breakdown by Holding

Dividend income split chart showing TGT 27.9% (~$793/year), NOBL 27.6% (~$783/year), PEP 23.6% (~$670/year), and ABBV 20.9% (~$595/year), with all holdings paying quarterly
Dividend income split across the portfolio: TGT ~27.9% ($793/year), NOBL ~27.6% ($783/year), PEP ~23.6% ($670/year), ABBV~20.9% ($595/year). All holdings pay quarterly.

Here’s how the portfolio’s dividend income is split between the holdings:

  • TGT: about 27.9% of the income (roughly $793 per year)
  • NOBL: about 27.6% (about $783 per year)
  • PEP: about 23.6% (about $670 per year)
  • ABBV: about 20.9% (about $595 per year)

All holdings pay quarterly.

5-year dividend growth rates included in this portfolio:

  • TGT: 10.9%
  • NOBL: 3.9%
  • PEP: 7.2%
  • ABBV: 5.9%

This mix creates a balanced dividend engine: faster growth from some holdings, steadier growth from others, and diversification from the Dividend Aristocrats ETF exposure.

Forward Income Outlook

If income growth continues in line with recent history, this portfolio’s cash flow could rise steadily over time.

  • Yield on cost may grow from 2.9% today to about 4% in five years
  • Annual income could increase from $2,842 to roughly $3,994
  • Monthly income could rise from $237 to about $333
  • And this projection is described as happening without adding new capital or reinvesting dividends

That’s the long-term appeal of dividend growth investing: when dividend increases persist, the income stream can strengthen meaningfully over time — even with a “no new contributions” approach.

Get the next DividendXray article

Get notified when a new dividend investing analysis is published.

​

Disclaimer

This article is provided for educational and informational purposes only and should not be considered investment, tax, or legal advice. References to specific securities are for illustration and comparison purposes only and are not recommendations to buy, sell, or hold any investment. Historical performance, estimates, and projections do not guarantee future results.