Looking to create a durable, long-term income stream from your portfolio? Here are 10 great dividend ETFs that can help make it happen.Dividend exchange-traded funds (ETFs) are one of the best ways for investors to generate years of consistent, passive income. Each ETF invests in hundreds of dividend stocks while targeting a particular theme or corner of the market. In that way, they're terrific products for people to simply buy and hold forever.Choosing between the roughly 180 dividend equity ETFs availabl ...

Core Insights - The increasing demand for artificial intelligence (AI) has positively impacted the stock market, particularly tech stocks, leading to higher valuations [2] - Investors are becoming cautious due to high stock valuations and are seeking low-cost alternatives, such as exchange-traded funds (ETFs), for investment [2] - Vanguard is highlighted as a prominent player in the ETF market, offering a variety of options suitable for different investor needs [3] ETF Overview - The Vanguard High Dividend Yield ETF (VYM) is noted for its yield of 2.39% and holds over 500 stocks with a low expense ratio of 0.06%, providing significant diversification [3] - The Vanguard High-Yield Active ETF (VGHY) offers a higher yield of 6.20% and pays monthly dividends, focusing on below investment-grade bonds [4][6] - VGHY holds 233 junk bonds, with 45.58% rated BB and 35.58% rated B, indicating a higher credit and interest rate risk due to its exposure to lower-rated securities [4][7] Risk and Return Profile - Junk bonds, which VGHY invests in, are characterized by higher yields but also carry increased risk due to lower credit ratings, representing debt from financially struggling companies [5] - VGHY has assets totaling $80 million and provides high diversification, with 72% of its bonds from the industrial sector and 10% from the finance sector [7] - The fund's bond maturity is primarily between 1 to 5 years (55%) and 5 to 10 years (40%), with some bonds offering coupon rates exceeding 10% [6][7]

24/7 Wall St. Key Points Many of these funds have outperformed SCHD over time. Some of these funds offer much wider diversification than SCHD. These funds involve strategies that could help them outperform SCHD in the long term. If you’re thinking about retiring or know someone who is, there are three quick questions causing many Americans to realize they can retire earlier than expected. take 5 minutes to learn more here To generate passive income while also potentially earning capital appreci ...

Put simply, if you’re a passive investor, you probably can’t reach Buffett’s preferred yield of 3%. However, if you’re willing to diversify into other asset classes or do your own research, you might be able to surpass that threshold.The decline in average yields is not a new trend, according to Deutsche Bank's strategist Jim Reid (5). His analysis indicates that companies have been moving to buybacks over dividends for decades, as the market has become more dominated by high-growth technology firms that pr ...

Core Insights - Many individuals should aim for more than a million dollars for retirement, especially younger investors with a starting capital of $100,000 [1] - Investing in exchange-traded funds (ETFs) is recommended for those who are not expert stock analysts [1] Investment Growth Potential - Starting with $100,000 and assuming an 8% average annual growth rate, the potential growth over time with additional annual investments is outlined as follows: - After 5 years: $184,948 with $6,000 annually; $222,964 with $12,000 annually - After 10 years: $309,765 with $6,000 annually; $403,638 with $12,000 annually - After 20 years: $762,633 with $6,000 annually; $1,059,171 with $12,000 annually - After 30 years: $1,740,341 with $6,000 annually; $2,474,416 with $12,000 annually - After 40 years: $3,851,138 with $6,000 annually; $5,529,825 with $12,000 annually [3][4] Recommended ETFs - Suggested ETFs include: - Vanguard S&P 500 ETF (VOO): 1.12% dividend yield, 14.91% 5-year average annual return, 14.40% 10-year average annual return - Vanguard Total Stock Market ETF (VTI): 1.12% dividend yield, 13.74% 5-year average annual return, 13.83% 10-year average annual return - Vanguard Total World Stock ETF (VT): 1.66% dividend yield, 11.47% 5-year average annual return, 10.09% 10-year average annual return - Vanguard Dividend Appreciation ETF (VIG): 1.64% dividend yield, 11.74% 5-year average annual return, 12.91% 10-year average annual return - Schwab U.S. Dividend Equity ETF (SCHD): 3.87% dividend yield, 8.90% 5-year average annual return, 11.26% 10-year average annual return - Fidelity High Dividend ETF (FDVV): 3.08% dividend yield, 16.33% 5-year average annual return - Vanguard High Dividend Yield ETF (VYM): 2.50% dividend yield, 12.94% 5-year average annual return, 11.08% 10-year average annual return - Vanguard Growth ETF (VUG): 0.41% dividend yield, 15.60% 5-year average annual return, 17.00% 10-year average annual return - Vanguard Information Technology ETF (VGT): 0.39% dividend yield, 18.29% 5-year average annual return, 22.00% 10-year average annual return - iShares Semiconductor ETF (SOXX): 0.54% dividend yield, 20.22% 5-year average annual return, 26.46% 10-year average annual return [5][7]

Core Insights - The article emphasizes the importance of dividends as a critical indicator of investment value, highlighting that retail investors often focus on short-term market fluctuations rather than long-term returns driven by dividends [1][2]. Dividend Contribution to Returns - Over the past century, dividends have accounted for 31% of the total return of the S&P 500 on a pro-forma basis, with certain decades, such as the 1940s and 1970s, seeing dividends contribute over 50% of returns [2]. - Including dividends, the S&P 500's return from January 1930 to February 2025 would be 9,584 points, compared to just 278 points without dividends, illustrating the exponential impact of compounding [3]. Investment Vehicles - Several exchange-traded funds (ETFs) provide access to high-dividend stocks, allowing investors to benefit from dividend payouts without needing to identify individual stocks [3]. - A list of six ETFs is provided, each offering a combination of attractive price-to-earnings ratios and a strong dividend payout record, with one ETF focusing solely on dividend aristocrats [4]. ETF Details - **iShares Select Dividend ETF (DVY)**: P/E ratio of 15.23, $20 billion in assets, 100 US stocks with five-year dividend records, expense ratio of 0.38% [5]. - **Schwab US Dividend Equity ETF (SCHD)**: P/E ratio of 16.7, $69.7 billion in assets, tracks the Dow Jones 100 Dividend Index, expense ratio of 0.06% [5]. - **Vanguard High Dividend Yield ETF (VYM)**: P/E ratio of 19.8, $81.2 billion in assets, tracks the FTSE High Dividend Yield Index, expense ratio of 0.06% [5]. - **State Street SPDR S&P Dividend ETF (SDY)**: P/E ratio of 17.7, $19.5 billion in assets, corresponds to the S&P High Yield Dividend Aristocrats Index, expense ratio of 0.35% [5]. - **iShares Core High Dividend ETF (HDV)**: P/E ratio of 20.7, $11.6 billion in assets, focuses on 75 dividend-paying domestic stocks, expense ratio of 0.08% [5]. - **ProShares S&P 500 Dividend Aristocrats ETF (NOBL)**: P/E ratio of 21.3, $11.4 billion in assets, exclusively focuses on S&P 500 Dividend Aristocrats, expense ratio of 0.35% [5].

Core Insights - The Vanguard High Dividend Yield ETF (VYM) offers broader diversification and stronger recent returns compared to the iShares Core High Dividend ETF (HDV), which focuses on higher payouts and a more concentrated portfolio [2][9] - Both ETFs aim to provide stable income through high-dividend U.S. stocks, but VYM holds nearly 600 companies for wide diversification, while HDV concentrates on just 75 stocks [3][9] Cost & Size Comparison - VYM has a lower expense ratio of 0.06% compared to HDV's 0.08%, making it slightly more affordable [4][5] - As of November 22, 2025, VYM has a 1-year return of 5.74%, while HDV has a return of 2.06% [4] - HDV offers a higher dividend yield of 3.09% compared to VYM's 2.49% [4] Performance & Risk Analysis - Over the past five years, HDV experienced a maximum drawdown of -16.52%, while VYM had a drawdown of -15.87% [6] - An investment of $1,000 would have grown to $1,433 in HDV and $1,595 in VYM over the same period [6] Portfolio Composition - VYM contains 566 holdings with significant sector weights in financial services (21%), technology (14%), and industrials (13%), appealing to investors seeking diversification [7] - HDV, with only 75 stocks, is heavily weighted in consumer staples, energy, and healthcare, focusing on established high-yielding blue chips like Exxon Mobil and Johnson & Johnson [8] Summary of Investment Strategies - VYM is more diversified and has higher assets under management at $81.3 billion compared to HDV's $11.7 billion [4][9] - While HDV offers a higher dividend yield, VYM has delivered stronger recent total returns, making both ETFs viable options for income-focused investors [9][11]

Core Insights - The Vanguard High Dividend Yield ETF (VYM) is a notable $67 billion fund with a low expense ratio of 0.06% [1] Group 1: Fund Characteristics - VYM is one of only five U.S. Large-Cap Value ETFs, highlighting its unique position in the market [1] - The fund is analyzed by The Sunday Investor, who has a strong analytical background and has developed a proprietary ETF Rankings system [1] Group 2: ETF Rankings System - The Sunday Investor's ETF Rankings system evaluates nearly 1,000 ETFs based on various factors including costs, liquidity, risk, size, value, dividends, growth, quality, momentum, and sentiment [1] - The system provides an easy-to-understand composite score ranging from 1 to 10 for each ETF [1]

Core Insights - Cash investments have been favorable for investors in a volatile market due to high interest rates, with high-yield savings accounts and U.S. Treasury notes providing attractive yields [1][2] - As interest rates decline, yields on cash-heavy accounts are expected to drop significantly, making cash less appealing compared to dividend ETFs [2][4] Group 1: Interest Rate Trends - High-yield savings accounts have seen a decrease from an average interest rate of 5.1% in March to around 4% in November [3][7] - Analysts predict that rates on cash-heavy accounts could fall to approximately 3.5% if the Federal Reserve cuts rates two more times before mid-2026 [4] Group 2: Inflation Impact - The real return on cash investments is diminished by inflation; for instance, a 3% inflation rate against a 4% yield results in a real return of only 1% before taxes [4] - After accounting for federal and state taxes, many investors may only break even on their cash returns [5] Group 3: Investment Alternatives - Dividend ETFs are highlighted as a more attractive option, offering competitive yields and the potential for payout growth over time [5][6] - Specific ETFs mentioned include Schwab U.S. Dividend Equity ETF (SCHD) with a 3.88% yield and Vanguard High Dividend Yield ETF (VYM) with a 2.51% yield, which includes stocks from major companies like Broadcom and JP Morgan [7]

Core Insights - The Vanguard High Dividend Yield ETF (VYM) and ProShares - S&P 500 Dividend Aristocrats ETF (NOBL) differ significantly in cost, breadth, and yield, with VYM being more affordable and holding a larger number of stocks [1][2] Cost and Size Comparison - VYM has an expense ratio of 0.06%, significantly lower than NOBL's 0.35% [3] - As of October 31, 2025, VYM's one-year return is 10.0%, while NOBL's is -1.8% [3] - VYM offers a dividend yield of 2.5%, compared to NOBL's 2.1% [3] - VYM has assets under management (AUM) of $81.3 billion, while NOBL has $11.1 billion [3] Performance and Risk Comparison - Over the past five years, VYM has a maximum drawdown of 15.85%, while NOBL's is 17.92% [4] - An investment of $1,000 in VYM would grow to $1,734 over five years, compared to $1,396 for NOBL [4] Portfolio Composition - VYM holds 589 U.S. stocks, with significant allocations in Financial Services (22%), Technology (16%), and Healthcare (12%) [5] - Top holdings in VYM include Broadcom Inc (1.73%), JPMorgan Chase (0.25%), and Exxon Mobil (2.38%) [5] - NOBL consists of 70 equally weighted stocks, focusing on long-term dividend growth, with notable holdings like C.H. Robinson Worldwide (0.02%), Cardinal Health (0.02%), and Caterpillar (0.02%) [6] Investment Strategy - VYM tracks the FTSE All-World High Dividend Yield Index, excluding real estate investment trusts and focusing on companies with higher-than-average dividend yields [8] - NOBL tracks S&P 500 companies that have consistently raised dividends for at least 25 years, emphasizing proven dividend raisers [9]