2 Dividend ETFs Perfect for Retirees in 2026

Core Viewpoint - The article discusses the potential benefits of dividend-focused ETFs for retirees seeking stability and yield, particularly in a volatile market environment [2][3]. Group 1: Dividend ETFs Overview - There is a wide selection of dividend-focused ETFs available, catering to different investment strategies, including pure equity-focused options and those utilizing covered calls for additional income [2]. - The Schwab U.S. Dividend Equity ETF (SCHD) has shown significant performance, gaining 10% year to date with a yield of 3.82% and a beta of 0.69, indicating lower volatility compared to the broader market [4][5][8]. Group 2: Market Conditions and Strategy - The current market volatility, particularly in the tech sector, suggests that a low-beta strategy focusing on income may be more favorable for investors in the near term [3]. - Defensive sectors, such as consumer staples, are gaining attention as they provide stability during turbulent market conditions [3]. Group 3: ETF Comparisons - The Schwab U.S. Dividend Equity ETF charges a low expense ratio of 0.06%, making it an attractive option compared to other dividend ETFs like DVY, which has a higher expense ratio of 0.38% [7][8]. - DVY has a P/E ratio of 16.1x and a yield of 3.65%, having risen 7% year to date, indicating a competitive position in the dividend ETF market [8].