The Only 3 Dividend ETFs Investors Need to Own in 2026 for Long-Term Passive Income

Core Viewpoint - The article discusses the abundance of dividend exchange-traded funds (ETFs) available to investors, highlighting the importance of selecting the right ETF based on individual investment profiles and goals [1][3]. Group 1: Overview of Dividend ETFs - There are currently over 15,000 ETFs in existence, with a majority offering some form of dividend yield [1]. - Investors are encouraged to conduct thorough research to identify top-tier dividend ETFs that align with their risk tolerance and long-term objectives [3]. Group 2: Recommended Dividend ETFs - The Schwab U.S. Dividend Equity ETF (SCHD) is highlighted as a significant holding, offering a 3.8% dividend yield and focusing on high-quality large-cap dividend stocks [5][6]. - SCHD tracks the Dow Jones U.S. Dividend 100 Index and provides substantial exposure to consumer staples, energy, and healthcare sectors, with an average price-earnings ratio between 15 and 16 times [6][8]. - The Fidelity High Dividend ETF (FDVV) is noted for delivering over 13% annualized returns since its inception in 2016, with a yield of 3.1% [8].