15 Best Dividend ETFs You Shouldn't Miss To Buy

The Vanguard High Dividend Yield ETF (VYM) is a passively managed exchange-traded fund (ETF) that tracks the FTSE High Dividend Yield Index. This index consists of large-cap US companies with high dividend yields.

VYM is one of the most popular dividend ETFs on the market, with over $48 billion in assets under management. It boasts a 10-year average annual return of 6.8%, with a current dividend yield of approximately 3.25%.

Those looking for the best dividend ETF 2024 and a compelling option for income-oriented investors seeking exposure to high-yielding can consider investing in SPYD. With a current yield of approximately 4.7%, SPYD consistently delivers one of the highest yields among its peers within the S&P 500 universe. 

SPYD holds approximately 80 different companies across various sectors, providing diversification and reducing your exposure to any single company or industry. This helps mitigate risk and smooth out potential volatility.

HDV is a popular choice for income-seeking investors, offering exposure to high-dividend-paying companies from developed countries worldwide. Its focus on high-yielding companies with a track record of dividend payments can provide a reliable income stream for retirees or those living off their investments.

It invests in over 75 companies across various sectors and countries, reducing concentration risk. Also, its expense ratio is 0.50% which is a relatively low cost compared to some other dividend ETFs.

The Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) is an exchange-traded fund (ETF) that tracks the S&P 500 Low Volatility High Dividend Index. This index selects 50 of the highest-yielding stocks in the S&P 500 Index with lower historical volatility.

The fund aims to provide investors with a combination of high income and lower risk than the broader market. Its holdings tend to be less volatile than the broader market, which can help to provide investors with some protection against downturns.

If you seek quality companies with strong free cash flow from developed markets like Europe and North America, TTAI fits the bill. It is one of the best etf with dividend offering income and diversification with lower correlation to the US market.

TTAI is primarily focused on quality and growth, seeking to invest in international companies with strong free cash flow characteristics. While these companies may eventually offer attractive dividends, their primary focus is on reinvesting profits for future growth, potentially leading to lower immediate payouts.

FLV tracks the QS Low Volatility High Dividend Index, which means it invests in US companies with relatively high dividend yields and lower prices. It prioritizes companies with strong financials and sustainable dividend payouts, aiming for long-term income stability.

Monitor your portfolio and adjust allocations as needed to maintain your desired income level and risk profile. Consulting a financial advisor can be beneficial in tailoring your dividend strategy to your circumstances and risk tolerance.

The best ETF for dividend is PFM. The fund tracks the Nasdaq US Broad Dividend Achievers™ Index, which specifically targets companies that have increased their annual dividends for at least 10 consecutive years.

PFM has been around since 2005 and boasts a solid track record of delivering competitive returns and consistent dividend growth. Its current yield stands at around 3.65%, but its historical dividend growth rate is impressive, averaging around 8% annually over the past decade.

GVAL invests in companies with strong Environmental, Social, and Governance (ESG) practices, appealing to investors seeking alignment with ethical values alongside financial returns. Its global focus provides exposure to companies across developed and emerging markets.

Compare GVAL's historical returns against benchmark indices and similar ESG-focused ETFs. This helps assess its effectiveness in generating returns while adhering to ethical principles.

SCHD's focus on consistent growers provides potentially more dependable and growing income over time, compared to high-yielding but potentially unsustainable payouts.

By selecting companies with strong financials and lower price volatility, SCHD aims for a smoother ride compared to high-yielding, more volatile ETFs. Lower price volatility due to its quality focus can offer peace of mind for risk-averse investors. With a fee of only 0.06%, SCHD minimizes costs, allowing more of your investment to generate returns.

SDIV is among the best dividend stocks as it boasts a yield exceeding 6%, which dwarfs many other dividend ETFs and can be extremely tempting for income investors.  This can be attractive for investors seeking immediate income or those nearing retirement who rely on dividends for living expenses.

By focusing on the 50 highest-yielding US companies, SDIV offers concentrated exposure to high-income potential. SDIV can be a valuable tool for experienced investors seeking high income and comfortable with high risk.

If you are searching for a dividend stock ETF to invest your money in, get it into the NOBL. NOBL tracks the S&P 500 Dividend Aristocrats Index, which includes only companies in the S&P 500 that have increased their dividends annually for at least 25 consecutive years.

While not the highest on the market, NOBL's current yield of around 2.13% provides a consistent income stream. Its focus on Dividend Aristocrats offers a valuable layer of security and potential for ongoing income streams.

FTSL currently boasts a yield exceeding 5.25%, which is significantly higher than many traditional dividend ETFs. This can be attractive for income-oriented investors seeking substantial payouts.

It utilizes a unique long/short strategy. It goes long on high-yielding senior loans and fixed-income securities while going short on other securities to potentially hedge against market downturns and generate additional income.

FDVV offers a compelling combination of attractive yield, diversification, and a moderate expense ratio. With over 100 holdings across various sectors, FDVV reduces your exposure to any single company or industry, spreading out risk and offering broader market coverage.

The fund primarily invests in large-cap US companies with a history of consistent dividend payments and strong financials, prioritizing stability over chasing high yields from riskier companies.

PEY tracks the Nasdaq US Dividend Achievers™ 50 Index, selecting companies with a history of consistent and increasing dividends. This suggests sustainable payouts and potential for future growth.

The fund focuses on financially stable companies with strong cash flow generation, aiming to minimize the risk of dividend cuts even in challenging economic conditions. If global diversification is important, consider combining PEY with other geographically diversified ETFs.

WisdomTree U.S. SmallCap Dividend Fund (DES) can indeed be a compelling option for dividend investors seeking exposure to smaller US companies. DES invests in small-cap companies with strong fundamentals and dividend track records, aiming for sustainable dividend payouts and reduced risk compared to pure small-cap value plays.

With a current yield exceeding 4.10%, DES stands out among small-cap ETFs as a strong income generator. This can be attractive for investors looking to maximize their dividend income stream.