3 High Yield Dividend ETFs For Long Term Investors

Core Insights - The article emphasizes the importance of looking beyond traditional dividend stocks for generating steady income through 2026, highlighting the advantages of exchange-traded funds (ETFs) as a low-risk investment option for passive income [1]. Group 1: ETFs Overview - Schwab US Dividend Equity ETF (SCHD), JPMorgan Equity Premium Income ETF (JEPI), and Global X SuperDividend ETF (SDIV) are identified as ideal ETFs for long-term investors due to their high yield and investment in quality companies [1]. - These ETFs provide exposure to major U.S. companies at a low cost and with low volatility, making them suitable for investors seeking predictable income [1]. Group 2: Schwab US Dividend Equity ETF (SCHD) - SCHD offers a yield of 3.79% and has an expense ratio of 0.06%, investing in 100 stocks [3][4]. - The ETF excludes real estate investment trusts and tracks the Dow Jones U.S. Dividend 100 Index, focusing on stocks with profitability, consistent dividend payments, and strong balance sheets [4]. - The fund's highest sector allocation is in energy (19.34%), followed by consumer staples (18.50%) and healthcare (16.10%), investing in companies with a strong history of dividend payments such as Merck, Coca-Cola, and Chevron [5]. Group 3: JPMorgan Equity Premium Income ETF (JEPI) - JEPI is noted for its high yield of 8.21%, appealing to passive income investors [7]. - The ETF employs a unique investment strategy using covered calls to generate income [6].