Choosing the best high-dividend ETFs for you depends on your individual investment goals and risk tolerance. However, here are 7 popular options with strong track records and attractive yields, as of December 21, 2023:
High Yield:
- Global X SuperDividend ETF (SDIV): Yielding a whopping 11%, SDIV tracks an index of US companies with the highest dividend yields. However, remember that high yields often come with higher risk and lower growth potential.
- Invesco High Yield Equity Dividend Achievers ETF (PEY): Offering a 4.82% yield, PEY focuses on companies with a history of growing their dividends. This provides a bit more stability compared to pure high-yield funds.
Moderate Yield with Growth Potential:
- Vanguard High Dividend Yield Index ETF (VYM): A classic choice with a diversified portfolio of 450+ US stocks, VYM currently yields 4.39%. It provides exposure to established companies with solid dividend track records.
- Schwab US Dividend Equity ETF (SCHD): With a low expense ratio of 0.06% and a 3.37% yield, SCHD focuses on quality US companies with sustainable dividend growth. It’s a good option for long-term investors seeking income and potential capital appreciation.
International Exposure:
- Vanguard International High Dividend Yield ETF (VYMI): Accessing foreign dividend payers, VYMI yields 4.39% with a focus on developed markets. This can help diversify your portfolio and potentially capture higher returns.
- iShares International Select Dividend ETF (IDV): With a 6.8% yield, IDV holds high-dividend companies from developed and emerging markets. However, consider the added risks associated with emerging markets.
Sector-Specific:
- Vanguard Real Estate Index ETF (VNQ): Focusing on the real estate sector, VNQ yields 3.9% and offers exposure to companies like Prologis and American Tower. Real estate can be a good source of stable income, but keep in mind its dependence on broader economic conditions.
- Choosing the best high-dividend ETFs for you depends on your individual investment goals and risk tolerance. However, here are 7 popular options with strong track records and attractive yields, as of December 21, 2023:
- High Yield:
- Global X SuperDividend ETF (SDIV): Yielding a whopping 11%, SDIV tracks an index of US companies with the highest dividend yields. However, remember that high yields often come with higher risk and lower growth potential.
- Invesco High Yield Equity Dividend Achievers ETF (PEY): Offering a 4.82% yield, PEY focuses on companies with a history of growing their dividends. This provides a bit more stability compared to pure high-yield funds.
- Moderate Yield with Growth Potential:
- Vanguard High Dividend Yield Index ETF (VYM): A classic choice with a diversified portfolio of 450+ US stocks, VYM currently yields 4.39%. It provides exposure to established companies with solid dividend track records.
- Schwab US Dividend Equity ETF (SCHD): With a low expense ratio of 0.06% and a 3.37% yield, SCHD focuses on quality US companies with sustainable dividend growth. It’s a good option for long-term investors seeking income and potential capital appreciation.
- International Exposure:
- Vanguard International High Dividend Yield ETF (VYMI): Accessing foreign dividend payers, VYMI yields 4.39% with a focus on developed markets. This can help diversify your portfolio and potentially capture higher returns.
- iShares International Select Dividend ETF (IDV): With a 6.8% yield, IDV holds high-dividend companies from developed and emerging markets. However, consider the added risks associated with emerging markets.
- Sector-Specific:
- Vanguard Real Estate Index ETF (VNQ): Focusing on the real estate sector, VNQ yields 3.9% and offers exposure to companies like Prologis and American Tower. Real estate can be a good source of stable income, but keep in mind its dependence on broader economic conditions.
Remember:
- These are just suggestions, and it’s crucial to do your own research before investing.
- Consider your risk tolerance, investment goals, and time horizon when choosing an ETF.
- Diversify your portfolio to manage risk and maximize potential returns.
- Consult a financial advisor if needed for personalized guidance.
I hope this information helps you find the best high-dividend ETFs for your needs!
