Social Security Got a 3.6% Raise for 2027. DVY’s Payout Rose 10.24%. The Dividend Aristocrats Fund’s Rose 9.09%.
Social Security handed retirees a raise this year, but two dividend funds did something very different with their payouts, and the gap between all three numbers reveals a strategy worth understanding before your next retirement income decision.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
The Social Security Administration set the 2027 cost-of-living adjustment at 3.6%. That lifts the average retired worker’s monthly benefit from $2,095 to $2,170. Over the past twelve months, the iShares Select Dividend ETF (NASDAQ:DVY) grew its total payout per share by 10.24%. A Dividend Aristocrats alternative, the ProShares S&P 500 Dividend Aristocrats ETF (CBOE:NOBL), grew its split-adjusted payout by 9.09%. Both beat the adjustment by a wide margin, and DVY came out slightly ahead.
Why No Fund Can Replace Social Security
Social Security offers protections that no fund can match. The benefit is adjusted for inflation every year, lasts for life, and does not fall when markets fall. A fund’s payout has none of those features. What matters here is what a retiree can add on top of guaranteed income.
What the 3.6% Adjustment Adds to a Monthly Check
According to the Social Security Administration, the 3.6% adjustment raises the average retired worker’s benefit from $2,095 to $2,170 a month, an increase of $75. These are national averages. Your own benefit depends on your earnings history and the age you claimed, so it may differ significantly from these figures.
How DVY and NOBL Grew Their Payouts
Each fund’s two comparison windows contain four quarterly payments, so the growth rates compare like with like.
| Fund | Past 12 Months (Per Share) | Prior 12 Months (Per Share) | Payout Growth |
|---|---|---|---|
| DVY | $5.341893 | $4.845694 | 10.24% |
| NOBL (split-adjusted) | $1.172959 | $1.075237 | 9.09% |
The two growth rates were close, and both were well above the adjustment. DVY’s payout grew a little faster than NOBL’s over this period. However, selling shares of a fund in a taxable account can also trigger capital gains tax on any profit.
NOBL’s Share Split Can Look Like a Dividend Cut
NOBL completed a 2-for-1 share split effective May 28, 2026. The split halved the per-share amount of every payment after that date. The NOBL figures in this article are adjusted so that payments before and after the split compare directly.
NOBL’s raw payment history can look like a cut. The March 2026 payment shows $0.512242 per share, while June’s shows $0.303711. Payments appear to drop by about half around the split date, but the drop comes only from the split. Shareholders held twice as many shares after the split, so their total income stayed intact.
What $100,000 Earned in Each Fund
Over the past twelve months, a $100,000 position in DVY produced $3,390.39 in income, an average of $282.53 a month. The same amount in NOBL produced $2,065.43, or an average of $172.12 a month. Both positions are sized using delayed quotes from Monday afternoon’s session: $157.56 for DVY and $56.79 for NOBL.
Both monthly averages are larger than the $75 monthly raise the average retired worker gets from the adjustment. DVY’s larger figure means it paid more income per dollar invested over this period. Both funds pay quarterly, though, so these monthly figures are averages of quarterly payments. You would not receive a check every month.
No Guarantee the Growth Will Repeat
One year of payout growth does not predict the next year. Fund payouts change from quarter to quarter. DVY paid $1.61622 per share in December 2025, then $1.149317 in March 2026. Either fund could pay less over a full year.
The Social Security adjustment comes with a legal guarantee. Neither fund’s payout does, so nothing ensures it will grow or even stay at its current level. The retiree who most needs dependable income is also the one least able to handle a cut. A dividend position sized so that a lower payout would be uncomfortable, rather than a threat to essential bills, limits that risk.
Combining a Guaranteed Raise With Income That Can Grow Faster
Think of Social Security as the base that covers essential costs, and treat dividend fund income as an extra stream that can grow faster in good years. DVY’s 10.24% and NOBL’s 9.09% payout growth show what that extra layer can add when companies raise their dividends. Over this past year, DVY’s payout grew slightly faster than NOBL’s. Guaranteed income typically anchors a retirement plan, with fund income playing a supporting role whose ups and downs can vary (the idea of living off the checks without selling the shares is the whole point of a dividend ladder, which we built out step by step in a free guide: Never Touch the Principal).
Contact [email protected] for any questions or corrections.
Ryne Mauck is an investment writer covering exchange-traded funds, retirement planning, and portfolio strategy. Through his work at 24/7 Wall St. and other investment platforms, including Seeking Alpha, he aims to provide clear, research-driven insights that help investors make more informed decisions while maintaining a long-term approach to investing.
Ryne holds a B.Sc. in Finance and an M.A. in Political Science. He is a formerly registered Municipal Advisor Representative and has passed the Series 50, Series 63, and Series 65 exams. His articles are not intended to be, nor should they be interpreted as, financial advice.
