It's 2026 and we're not just talking about tech stocks anymore! The market has broadened considerably and we're seeing previously unloved areas of the market, such as energy and small caps, finding new life again. More importantly for income seekers, dividend stocks have also begun outperforming the S&P 500 (SNPINDEX: ^GSPC). Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks » That doesn ...

Core Insights - The current market offers various ETFs with yields above 5%, appealing to income investors seeking better returns than traditional 2% or 3% yields [1] - These ETFs are established products with clear strategies for generating elevated income, though higher yields come with increased risk [1] ETF Summaries - The JPMorgan Equity Premium ETF (JEPI) has an 8.19% dividend yield, providing an annual dividend of $4.72 through a combination of large-cap US stocks and a covered call strategy [4][5] - The payout ratio for JEPI is 205.55%, indicating a significant portion of income is derived from options premiums rather than traditional dividends, with a distribution growth rate of 11.94% [5] - The Global X SuperDividend ETF (SDIV) offers the highest yield at 9.17%, with a monthly dividend of $2.31, investing in the 100 highest-yielding stocks globally [6] - SDIV has a declining distribution rate of -1.33% and a payout ratio of 101.39% [7] - The iShares Emerging Markets Dividend ETF maintains a healthier payout ratio of 48.44%, but has experienced a distribution decline of 39.94% due to emerging market volatility [7]

Core Viewpoint - The Global X SuperDividend ETF (NYSEARCA:SDIV) offers an 8% yield by investing in 100 of the highest dividend-yielding equities globally [1] Group 1 - The ETF focuses on high dividend yield equities, which are selected from various global markets [1] - The investment strategy aims to provide a consistent income stream for investors through dividends [1]

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].

Core Insights - Monthly-paying exchange-traded funds (ETFs) are gaining popularity among income investors due to their convenience and ability to compound faster compared to traditional quarterly dividend stocks [3][4] Group 1: High-Yield Monthly ETFs - The article highlights three high-yield monthly ETFs: JPMorgan Equity Premium Income ETF (JEPI), Invesco S&P 500 High Dividend Low Volatility ETF (SPHD), and Global X SuperDividend ETF (SDIV) [4][5] - These ETFs offer sustainable yields that can help investors stay ahead of inflation, which is currently at 3.1% [4] Group 2: JPMorgan Equity Premium Income ETF (JEPI) - JEPI is an actively managed fund that combines a defensive portfolio of U.S. large-cap stocks with a systematic options-selling strategy, aiming for lower volatility than the broader market [7] - The ETF has an 8.4% dividend yield and a low expense ratio of 0.35%, or $35 per $10,000 [9] Group 3: Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) - SPHD targets the 75 highest-yielding stocks in the S&P 500 and selects the 50 with the lowest volatility, resulting in a yield of 3.65% and an expense ratio of 0.30%, or $30 per $10,000 [11] - This ETF is designed for investors seeking above-average income with reduced price volatility [10] Group 4: Global X SuperDividend ETF (SDIV) - SDIV focuses on maximizing cash flow by investing in the 100 highest-yielding dividend stocks globally, offering a yield of 10% and an expense ratio of 0.58%, or $58 per $10,000 [14] - The ETF's high yield comes with increased risk, as many holdings may be smaller or cyclical companies [15]

Core Viewpoint - High-yielding investments, such as the Global X SuperDividend ETF, may appear attractive due to their high dividend yields, but they come with significant risks and potential safety concerns regarding the sustainability of those dividends [2][10]. Group 1: ETF Overview - The Global X SuperDividend ETF offers a yield of 10%, significantly higher than the S&P 500 average of 1.2% [2]. - The ETF consists of 106 holdings, providing a degree of diversification, with 25% of stocks based in the U.S. and significant international exposure, including 16% from Hong Kong and 9% from Brazil [4]. - Many stocks within the ETF are not well-known, with Ithaca Energy being one of the largest positions, and recognizable names like Guess showing negative free cash flow over the past year [5]. Group 2: Performance and Risks - The ETF has experienced a 30% decline over the past five years, with total returns, including dividends, at just under 20%, compared to a 97% return from the S&P 500 over the same period [7][8]. - Concerns about dividend safety arise from the ETF's high exposure to international markets and tariffs, leading to skepticism about the reliability of its dividend income [6][9]. - Although the ETF has outperformed the S&P 500 this year with total returns of 24% versus 11%, long-term performance remains uncertain [9]. Group 3: Investment Strategy Recommendations - Investors are advised to be cautious with the SuperDividend ETF, as it appears to prioritize yield over quality and safety of the underlying stocks [10]. - A more prudent approach may involve focusing on safer index funds that provide dividends, even if it results in lower yields, as this strategy may offer better long-term stability [11].