Which ETF pays the highest dividend?
If you're looking for an ETF that pays a steady stream of income, you might consider one of the many ETFs that focus on investments that historically have paid high dividends. ETF issuers decide whether to pay these dividends directly or reinvest them in the fund. The fund prospectus makes it clear which it is.
- VanEck BDC Income ETF (BIZD)
- PGIM Floating Rate Income ETF (PFRL)
- JP Morgan Nasdaq Equity Premium Income ETF (JEPQ)
- iShares Select Dividend ETF (DVYE)
- iShares 20+ Year Treasury Bond Buywrite Strategy ETF (TLTW)
- Global X MLP ETF (MLPA)
- Invesco KBW High Dividend Yield Financial ETF (KBWD)
- 6 Best Monthly Dividend ETFs. ...
- JPMorgan Equity Premium Income Fund JEPI -0.9% ...
- JPMorgan NASDAQ Equity Premium Income Fund (JEPQ) ...
- Invesco S&P 500 Low Volatility ETF SPLV +0.4% ...
- WisdomTree U.S. LargeCap Dividend Fund DLN -0.1%
| Symbol | Name | 5-Year Return |
|---|---|---|
| SPYG | SPDR Portfolio S&P 500 Growth ETF | 14.43% |
| VOOG | Vanguard S&P 500 Growth ETF | 14.38% |
| IWL | iShares Russell Top 200 ETF | 14.36% |
| LRGE | ClearBridge Large Cap Growth ESG ETF | 14.29% |
- Philip Morris International PM.
- Altria Group MO.
- Comcast CMCSA.
- Medtronic MDT.
- Pioneer Natural Resources PXD.
- Duke Energy DUK.
- PNC Financial Services PNC.
- Kinder Morgan KMI.
If you're looking for an ETF that pays a steady stream of income, you might consider one of the many ETFs that focus on investments that historically have paid high dividends. ETF issuers decide whether to pay these dividends directly or reinvest them in the fund. The fund prospectus makes it clear which it is.
Experts agree that for most personal investors, a portfolio comprising 5 to 10 ETFs is perfect in terms of diversification.
| Symbol | Name | Dividend Yield |
|---|---|---|
| SURI | Simplify Propel Opportunities ETF | 12.19% |
| SDIV | Global X SuperDividend ETF | 12.12% |
| SPYI | NEOS S&P 500 High Income ETF | 12.07% |
| TYLG | Global X Information Technology Covered Call & Growth ETF | 12.02% |
| Stock | Dividend yield | Dividend growth streak |
|---|---|---|
| Procter & Gamble Co. (PG) | 2.4% | 68 years |
| 3M Co. (MMM) | 6.5% | 65 years |
| Coca-Cola Co. (KO) | 3.3% | 61 years |
| Johnson & Johnson (JNJ) | 3.2% | 61 years |
Dividends and interest payments from ETFs are taxed similarly to income from the underlying stocks or bonds inside them. For U.S. taxpayers, this income needs to be reported on form 1099-DIV. 2 If you earn a profit by selling an ETF, they are taxed like the underlying stocks or bonds as well.
What are the top 5 ETFs to buy?
| ETF | Assets Under Management | Expense Ratio |
|---|---|---|
| Vanguard Information Technology ETF (VGT) | $70 billion | 0.10% |
| VanEck Semiconductor ETF (SMH) | $16.3 billion | 0.35% |
| Invesco S&P MidCap Momentum ETF (XMMO) | $1.6 billion | 0.34% |
| SPDR S&P Homebuilders ETF (XHB) | $1.8 billion | 0.35% |
| Exchange-traded fund (ticker) | Assets under management | Expenses |
|---|---|---|
| Vanguard 500 Index ETF (VOO) | $431.7 billion | 0.03% |
| Vanguard Dividend Appreciation ETF (VIG) | $78.2 billion | 0.06% |
| Vanguard U.S. Quality Factor ETF (VFQY) | $324.3 million | 0.13% |
| SPDR Gold MiniShares (GLDM) | $6.8 billion | 0.10% |
| Symbol | ETF Name | 10y Chg 4-2-24 |
|---|---|---|
| XNTK | SPDR NYSE Technology ETF | 457% |
| QTEC | FT Nasdaq 100-Technology Sector ETF | 452% |
| QQQ | Invesco Nasdaq 100 Trust ETF | 452% |
| IGV | iShares Expanded Tech-Software Sector ETF | 425% |
| Company | Dividend Yield |
|---|---|
| Eagle Bancorp Inc (MD) (EGBN) | 8.80% |
| Alexander's Inc. (ALX) | 8.61% |
| First Of Long Island Corp. (FLIC) | 8.27% |
| Evolution Petroleum Corporation (EPM) | 8.26% |
What Is a Good Dividend Yield? Yields from 2% to 6% are generally considered to be a good dividend yield, but there are plenty of factors to consider when deciding if a stock's yield makes it a good investment. Your own investment goals should also play a big role in deciding what a good dividend yield is for you.
- Eli Lilly and Co (LLY) -- YES. ...
- Consolidated Edison, Inc. ...
- UGI Corp (UGI) -- YES. ...
- Procter & Gamble Co. ...
- The Coca-Cola Co (KO) -- YES. ...
- Colgate-Palmolive Company (CL) -- YES. ...
- PPG Industries, Inc. (PPG) -- YES. ...
- Chubb Corp (CB) -- NO. Dividends Paid Since 1902.
The fund may involve a greater degree of risk than an investment in other funds with greater diversification. Investment returns will fluctuate and are subject to market volatility, so that an investor's shares, when redeemed or sold, may be worth more or less than their original cost.
It's possible to live off the income from high-dividend ETFs, but it may take some planning. You can find high-dividend ETFs by analyzing the ETF selection in your brokerage account.
Dividend ETFs and dividend stocks can both generate income and provide long-term growth for investors. However, they both carry similar degrees of market risk. Therefore, the choice of ETFs versus stocks comes down to an investor's personal preferences, investing goals and tolerance for risk.
Holding an ETF for longer than a year may get you a more favorable capital gains tax rate when you sell your investment.
Is there a better ETF than SCHD?
The Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) and the Invesco S&P 500 High Dividend Low Volatility ETF (NYSEARCA:SPHD) are two popular dividend ETFs from leading asset managers. With a dividend yield of 4.5%, SPHD's yield is higher than SCHD's dividend yield of 3.5%.
You expose your portfolio to much higher risk with sector ETFs, so you should use them sparingly, but investing 5% to 10% of your total portfolio assets may be appropriate. If you want to be highly conservative, don't use these at all.
Vanguard S&P 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VOO is a great option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market.
| FUND(TICKER) | EXPENSE RATIO | 10-YEAR RETURN AS OF APRIL 1 |
|---|---|---|
| Vanguard Growth ETF (VUG) | 0.04% | 15.07% |
| iShares Russell 1000 Growth ETF (IWF) | 0.19% | 15.78% |
| iShares S&P 500 Growth ETF (IVW) | 0.18% | 14.34% |
| Schwab U.S. Large-Cap Growth ETF (SCHG) | 0.04% | 15.95% |
| ETF | Expense ratio | Yield to maturity |
|---|---|---|
| iShares Core U.S. Aggregate Bond ETF (ticker: AGG) | 0.03% | 5% |
| Vanguard Total World Bond ETF (BNDW) | 0.05% | 4.9% |
| Vanguard Core-Plus Bond ETF (VPLS) | 0.20% | 5.3% |
| DoubleLine Commercial Real Estate ETF (DCRE) | 0.39% | 6.2% |
