3 Dividend Income ETFs That Offer High Yields And Growth

Dividend Income ETFs - Dividend income ETFs provide simplified stock investing and generate significant cash flow, typically featuring high yields and diversified portfolios focused on blue-chip stocks [1] - These funds generally have low expense ratios and are passively managed, making them attractive for investors seeking high yields with some growth potential [1] Vanguard High Dividend Yield Index Fund ETF (VYM) - VYM has a 2.45% SEC yield and a low expense ratio of 0.06%, with over 500 holdings diversified across various sectors, particularly financial and tech stocks, which constitute nearly 40% of its total holdings [2] - The fund has achieved an annualized return of 12.5% over the past decade, indicating strong performance beyond its high yield, with top holdings including Broadcom, JPMorgan, and Walmart [3] - VYM primarily invests in large-cap stocks, especially value stocks, with only 7% allocated to small-cap stocks [4] Schwab US Dividend Equity ETF (SCHD) - SCHD offers a higher SEC yield of 3.81% and a 0.06% expense ratio, with an annualized return of 12.9% over the past decade, although returns have slowed recently, evidenced by a 7.7% return over the past three years [5] - The fund holds approximately 100 stocks, focusing on energy and consumer staples, with top holdings including Lockheed Martin, Bristol-Myers Squibb, and Chevron, which together account for 41% of total assets [6] - SCHD emphasizes large-cap value stocks, with over half of its capital in this category and no investments in growth stocks [7] iShares Core High Dividend ETF (HDV) - HDV has a 3.36% SEC yield and a slightly higher expense ratio of 0.08%, with a portfolio concentrated in consumer staples and energy stocks, yielding an annualized return of 10.0% over the past decade [8] - The fund's largest positions include Exxon Mobil, Chevron, and Johnson & Johnson, which together represent more than 20% of total assets, and it is more top-heavy with 57% of capital in its top 10 holdings [9] - HDV also prioritizes large-cap value stocks, with over 70% of its holdings in this category and only 1% in growth stocks, contributing to its high yield and reduced volatility [10]