5 High-Dividend ETFs to Earn Current Income

Core Insights - The U.S. stock market has surged over 30% since April, but concerns about high valuations, particularly in artificial intelligence, are causing investor caution [1][2] - The "Buffett Indicator" suggests that the market capitalization of U.S. stocks, currently around $72 trillion, is more than double the GDP, indicating potential overheating [2][3] - In a volatile market, dividend-focused investments are becoming increasingly attractive as they provide a steady income stream [4] Market Valuation - The stock market's value has risen significantly, with the Buffett Indicator reaching levels last seen before the 2022 bear market, signaling potential overvaluation [2][3] - The ratio of total market capitalization to GDP indicates that the stock market is overheating, despite recent GDP growth [3] Dividend Investing - Dividend exchange-traded funds (ETFs) are gaining attention as investors seek stable income amidst market uncertainty [4] - Not all dividend stocks are equal; high-yield stocks provide current income, while those with dividend growth indicate quality investing [5] - The dividend yield on the S&P 500 is at its lowest since the dotcom bubble, prompting a shift towards higher-yielding dividend ETFs [5] ETFs Overview - First Trust Dow Jones Global Select Dividend Index Fund (FGD): Up 0.2% in the past month, yields 4.95% annually, with fees of 56 bps [6] - First Trust Morningstar Dividend Leaders Index Fund (FDL): Up 0.8% in the past month, yields 4.67% annually, with fees of 43 bps [7] - iShares International Select Dividend ETF (IDV): Up 0.7% in the past month, yields 4.64% annually, with fees of 50 bps [8] - State Street SPDR Portfolio S&P 500 High Dividend ETF (SPYD): Down 2.2% in the past month, yields 4.56% annually, with fees of 7 bps [9] - Amplify CWP Enhanced Dividend Income ETF (DIVO): Down 1% in the past month, yields 4.58% annually, with fees of 56 bps [10]