Which ETF has the highest dividend yield?
WisdomTree U.S. Quality Dividend Growth ETF (DGRW)
One of the best run dividend ETFs in the world has the added advantage of paying monthly dividends. DGRW's focus on both quality and growth characteristics makes it ideally suited for most portfolios even though the dividend yield is on the lower end.
- Invesco High Yield Equity Dividend Achievers ETF (PEY)
- SPDR Portfolio S&P 500 High Dividend ETF (SPYD)
- iShares 20+ Year Treasury Bond BuyWrite Strategy ETF (TLTW)
- VanEck IG Floating Rate ETF (FLTR)
- Janus Henderson AAA CLO ETF (JAAA)
- VanEck Preferred Securities ex-Financials ETF (PFXF)
| Symbol | Name | 5-Year Return |
|---|---|---|
| XNTK | SPDR NYSE Technology ETF | 18.58% |
| UPRO | ProShares UltraPro S&P500 | 18.52% |
| PTF | Invesco Dorsey Wright Technology Momentum ETF | 18.33% |
| QQQ | Invesco QQQ Trust Series I | 18.27% |
| Symbol Symbol | ETF Name ETF Name | 1 Year 1 Year |
|---|---|---|
| VIG | Vanguard Dividend Appreciation ETF | 17.14% |
| VYM | Vanguard High Dividend Yield Index ETF | 15.88% |
| VYMI | Vanguard International High Dividend Yield ETF | 12.94% |
| VIGI | Vanguard International Dividend Appreciation ETF | 6.52% |
WisdomTree U.S. Quality Dividend Growth ETF (DGRW)
One of the best run dividend ETFs in the world has the added advantage of paying monthly dividends. DGRW's focus on both quality and growth characteristics makes it ideally suited for most portfolios even though the dividend yield is on the lower end.
| Symbol | Name | Dividend Yield |
|---|---|---|
| XRMI | Global X S&P 500 Risk Managed Income ETF | 12.39% |
| YYY | Amplify High Income ETF | 12.27% |
| TUGN | STF Tactical Growth & Income ETF | 12.15% |
| SPYI | NEOS S&P 500 High Income ETF | 12.15% |
Cons. No guarantee of future dividends. Stock price declines may offset yield. Dividends are taxed in the year they are distributed to shareholders.
Dividend ETFs are passively managed, meaning the fund manager follows an index and does not have to make trading decisions often. Dividend ETFs are good investment options for investors that are risk-averse and income-seeking.
Experts agree that for most personal investors, a portfolio comprising 5 to 10 ETFs is perfect in terms of diversification.
| Fund (ticker) | YTD performance | Expense ratio |
|---|---|---|
| Vanguard Information Technology ETF (VGT) | 8.6 percent | 0.10 percent |
| Financial Select Sector SPDR Fund (XLF) | 12.4 percent | 0.09 percent |
| Energy Select Sector SPDR Fund (XLE) | 13.5 percent | 0.09 percent |
| Industrial Select Sector SPDR Fund (XLI) | 10.8 percent | 0.09 percent |
What to pair with VOO?
Many people pair VOO with the Vanguard Total Bond Market ETF (BND) in a broader portfolio. The fixed income ETF has $95 billion in assets and is the largest bond ETF trading in the U.S. BND has two-thirds of its assets in U.S. government bonds, with most of the remainder in investment-grade corporate bonds.
What Is a Good Dividend Yield? Yields from 2% to 6% are generally considered to be a good dividend yield, but there are plenty of factors to consider when deciding if a stock's yield makes it a good investment. Your own investment goals should also play a big role in deciding what a good dividend yield is for you.
Vanguard High Dividend Yield ETF (VYM)
VYM has long been a mainstay for dividend investors thanks to a low 0.06% expense ratio, a diversified portfolio of 450 stocks, and a decent 2.8% 30-day SEC yield.
VOO Dividend Information
VOO has a dividend yield of 1.37% and paid $6.41 per share in the past year. The dividend is paid every three months and the last ex-dividend date was Mar 22, 2024.
Vanguard is a large investment advisor offering mutual funds and ETFs, many of which pay dividends. Most of Vanguard's ETF products pay monthly or quarterly dividends.
There are 2 basic types of dividends issued to investors of ETFs: qualified and non-qualified dividends. If you own shares of an exchange-traded fund (ETF), you may receive distributions in the form of dividends. These may be paid monthly or at some other interval, depending on the ETF.
- ARR. ARMOUR Residential REIT Inc. 18.38.
- ORC. Orchid Island Capital Inc. 8.31. 0.12.
- AGNC. AGNC Investment Corp. 9.15. ...
- OXSQ. Oxford Square Capital Corp. 3.16. ...
- EARN. Ellington Residential Mortgage REIT. 6.72. ...
- SLRC. Solar Capital Ltd. 15.20. ...
- PFLT. PennantPark Floating Rate Capital Ltd. 11.37. ...
- MAIN. Main Street Capital Corporation. 47.62.
The Vanguard High Dividend Yield ETF has achieved a total return of 8.25% annually since its inception in 2006, and it paid an average dividend yield of 3.02% over the past decade.
Here are some examples of 10-year Treasury ETFs: iShares 7-10 Year Treasury Bond ETF (IEF) Vanguard Long-Term Treasury ETF (VGLT) Schwab Long-Term US Treasury ETF (SCHQ)
Dividend ETFs or Dividend Stocks: Which Is Better? Dividend ETFs can be a good option for investors looking for a low-cost, diversified and reliable source of income from their investments. Dividend stocks may be a better option for investors who prefer to choose their own investments.
Why is ETF not a good investment?
ETFs are subject to market fluctuation and the risks of their underlying investments. ETFs are subject to management fees and other expenses. Unlike mutual funds, ETF shares are bought and sold at market price, which may be higher or lower than their NAV, and are not individually redeemed from the fund.
Over time, the cash flow generated by those dividend payments can supplement your Social Security and pension income. Perhaps, it can even provide all the money you need to maintain your preretirement lifestyle. It is possible to live off dividends if you do a little planning.
Focusing on growth businesses. In the trailing five-, 10-, 15-, and 20-year periods, the Vanguard Growth ETF (VUG 1.82%) has outperformed the S&P 500. That is a remarkable track record.
The potential for dividend cuts and fluctuating payouts are just two of the risks that investors need to consider. The potential for dividend cuts and fluctuating payouts are just two of the risks that investors need to consider.
Dividend-paying exchange-traded funds (ETFs) have been growing in popularity, especially among investors looking for high yields and more stability from their portfolios. As with stocks and many mutual funds, most ETFs pay their dividends quarterly—once every three months.
