Latest news with #dividendETFs
Globe and Mail
7 days ago
- Business
- Globe and Mail
Top 5 Dividend ETFs For 2025
Want expert insights on REITs and BDCs? Join Colorado Wealth Management Fund's email list—widely regarded as the top REIT analyst on Seeking Alpha. Stay ahead of the market with exclusive updates! [ Sign Up Now ] These five dividend ETFs continue to offer low expense ratios, solid sector diversification, and reliable dividend income in 2025. For investors looking to build a durable equity income portfolio, these ETFs remain among the top choices. While they still leave out a few useful sectors (real estate, utilities), they make a strong starting point for long-term investors who want their portfolio to actually pay them. SCHD: Still a Favorite for Quality and Yield The Schwab U.S. Dividend Equity ETF (SCHD) remains one of the most popular dividend ETFs for good reason. With an expense ratio of just 0.06%, it provides exposure to high-quality U.S. companies with consistent dividend histories. SCHD leans heavily into consumer staples and industrials, while underweighting financials and avoiding real estate altogether. It's a great core holding for long-term investors, but those building a more balanced portfolio may want to add complementary exposure to sectors SCHD leaves out - like real estate, utilities, or floating-rate preferred shares. VYM: The Classic High-Yield Workhorse The Vanguard High Dividend Yield ETF (VYM) continues to be a strong option for income-focused investors. Also carrying a rock-bottom 0.06% expense ratio, VYM holds over 400 U.S. stocks with above-average dividend yields. It includes solid exposure to financials and energy - two sectors often underrepresented in other dividend-focused funds. VYM doesn't try to outsmart the market - it focuses on companies that actually pay. That's why it remains one of the most consistent picks in the dividend ETF space. It also makes a great pairing with SCHD for those who want both quality and yield in their portfolio. VIG: For Dividend Growth Enthusiasts The Vanguard Dividend Appreciation ETF (VIG) doesn't chase yield - it focuses on companies with a long history of increasing dividends. With a 0.06% expense ratio, VIG offers exposure to companies that tend to be more stable and less cyclical, but also leans heavily into the industrials sector. VIG skips real estate and carries minimal energy exposure, so it may not be ideal as a standalone holding. However, for investors looking to prioritize long-term dividend growth over raw yield, it makes a lot of sense - especially when paired with something more income-oriented like HDV or SCHD. DGRO: Balanced, Understated, Effective The iShares Core Dividend Growth ETF (DGRO) is often overlooked but deserves more attention. It blends dividend growth with moderate yield and includes meaningful exposure to financials and tech. The fund charges a slightly higher expense ratio of 0.08%, but it makes up for it with a well-diversified portfolio that avoids major concentration risk. DGRO doesn't swing for the fences, but it rarely strikes out either. For investors who want a middle-of-the-road fund that complements either high-yield or high-growth ETFs, DGRO is a great pick in 2025. HDV: High-Yield Defense When You Need It The iShares Core High Dividend ETF (HDV) is the most defensive option on this list. It focuses on companies with stable earnings and high dividend yields, and tends to lean into sectors like healthcare and consumer staples. Its expense ratio is 0.08%, and its yield remains one of the highest among the big-name dividend ETFs. HDV tends to underweight financials and avoids energy and real estate. That makes it a bit less well-rounded, but great for income investors who want lower beta and a strong defensive tilt. One Glaring Omission: Real Estate (Again) As with previous years, none of these five ETFs offers meaningful exposure to real estate. That's a recurring blind spot - and an easy one to fix. Investors can add a fund like the Vanguard Real Estate ETF (VNQ) or choose from individual REITs like (O), (NNN), or (WPC) to round out the portfolio. The yield from quality REITs also pairs well with the more defensive holdings in this group. It's important to note that we easily beat our benchmark from inception. That includes our choices or REITS, mREITS, BDCs, and preferred shares. Bonus Pick: Want Tech Exposure Without Giving Up Your Dignity? While none of the five ETFs above offer real exposure to big-name tech stocks, investors who want to stay connected to the modern economy can consider the Vanguard Information Technology ETF (VGT). It's not a dividend fund, but it includes (AAPL), (MSFT), (NVDA), (TSLA), and other heavyweights at a low cost (0.10% expense ratio). Adding VGT won't do a lot to boost your income via dividends, but it can add some long-term capital appreciation while helping you keep up with what the kids are doing. Final Thoughts The five core dividend ETFs - SCHD, VYM, VIG, DGRO, and HDV - continue to provide excellent foundations for income-oriented portfolios in 2025. They've stood the test of time with low fees, strong management, and reliable performance. You'll still need to plug a few holes (real estate, utilities, maybe preferred shares), but you're starting with a very solid base. Now go get your dividends. Join The REIT Forum by Colorado Wealth Management Fund, trusted by over 60,000 investors for expert analysis on REITs, BDCs, and preferred shares. This article was compiled by my assistant. If there are any mistakes, blame him - I certainly will. Disclosure: I currently have a position in O . I may frequently trade in the preferred shares of any mortgage REIT and occasionally in the common shares.
Forbes
07-07-2025
- Business
- Forbes
5 Best Monthly Dividend ETFs To Buy For Steady Income
These five monthly dividend ETFs offer diverse approaches to high-yield investing with the advantage ... More of twelve distributions per year. For income-focused investors seeking consistent cash flow, monthly dividend ETFs represent an attractive alternative to traditional quarterly dividend payments. These exchange-traded funds provide the diversification benefits of owning hundreds or thousands of stocks while delivering predictable income streams that can help smooth out monthly expenses or accelerate reinvestment strategies. The appeal of monthly dividend ETFs extends beyond just payment frequency. These funds often focus on sectors and regions known for their dividend-paying capabilities, providing investors with exposure to established companies that generate strong cash flows. Whether you're a retiree looking to supplement fixed income or a younger investor building wealth through dividend reinvestment, monthly dividend ETFs can serve as cornerstone holdings in a well-balanced portfolio. Our selection methodology prioritizes funds with sustainable dividend yields, reasonable expense ratios, and strong underlying fundamentals. I've analyzed factors including total assets under management, dividend coverage ratios, geographic and sector diversification, and long-term performance track records to identify the most compelling opportunities in today's market environment. 5 Best Monthly Dividend ETFs To Buy For Steady Income The following five ETFs represent top picks for investors seeking reliable monthly dividend income. Each fund offers unique characteristics in terms of geographic exposure, sector focus, and yield potential, allowing investors to construct diversified income portfolios tailored to their specific risk tolerance and income requirements. They also each pay monthly distributions. 1. Invesco KBW High Dividend Yield Financial ETF (KBWD) Monthly Dividend Data: KBWD provides targeted exposure to high-dividend financial sector companies while paying monthly dividends, making it attractive for investors seeking frequent income distributions. The fund focuses on banks, REITs, insurance companies, and other financial services firms known for generous dividend policies. With an exceptional 12.87% current yield and monthly distributions totaling $1.77 annually, KBWD offers some of the highest income potential among monthly dividend ETFs. Trading at $13.87, the fund sits 14.7% below its 52-week high, potentially offering attractive entry opportunities for income investors. The financial sector's dividend tradition stems from regulated capital requirements and mature business models that generate predictable cash flows. The monthly distribution schedule allows for more frequent reinvestment opportunities and smoother income planning compared to quarterly alternatives. KBWD serves investors seeking concentrated exposure to financial sector dividends with monthly payment frequency, though the flat dividend growth rates suggest focusing on current income rather than dividend growth potential. 2. Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) Monthly Dividend Data: SPHD combines high dividend yields with low volatility characteristics while providing monthly distributions, selecting the 50 highest dividend-yielding stocks from the S&P 500 with the lowest volatility. This dual focus creates a portfolio designed for income and stability with frequent payment schedules. Currently offering a 3.82% yield with monthly dividends totaling $1.81 annually, SPHD provides moderate income with the stability of large-cap stocks. The fund has delivered solid performance with a 10.02% 1-year return, demonstrating that monthly dividend strategies can deliver both income and capital appreciation. The monthly distribution schedule enhances the appeal of the fund's low-volatility approach, providing predictable income flows for conservative investors. The fund's methodology ensures exposure to established S&P 500 companies with both high dividend yields and stable price movements. SPHD appeals to conservative income investors seeking the reliability of large-cap dividend stocks combined with monthly distributions and reduced portfolio volatility. 3. Global X SuperDividend ETF (SDIV) Monthly Dividend Data: SDIV provides global exposure to high-dividend companies across developed markets while paying monthly dividends, focusing on the highest-yielding opportunities worldwide. The fund's international diversification spans multiple countries and sectors, offering access to global dividend cultures with frequent distribution schedules. With a compelling 10.29% yield and monthly distributions totaling $2.30 annually, SDIV offers substantial income potential for global dividend investors. At $22.55, just 4.9% below its 52-week high, the fund has shown strong recent performance with a 13.21% 1-year return. The monthly payment structure enhances the appeal of international dividend investing by providing regular income flows regardless of varying international payment schedules. This global approach includes exposure to international markets where dividend policies may differ significantly from U.S. standards. SDIV suits investors seeking global high-dividend exposure with monthly distributions, though the declining dividend growth rates suggest focusing on current yield rather than future dividend increases. 4. Global X SuperDividend U.S. ETF (DIV) Monthly Dividend Data: DIV concentrates on the 50 highest-yielding U.S. stocks while providing monthly dividend distributions, offering domestic exposure to companies prioritizing shareholder income with frequent payment schedules. The fund's focus on American high-dividend stocks provides pure-play exposure to domestic dividend opportunities. Currently yielding 7.51% with monthly distributions totaling $1.32 annually, DIV provides substantial domestic dividend income. Trading at $17.58, down 9.0% from recent highs, the fund has generated an 8.25% 1-year return while maintaining its monthly distribution schedule. The monthly payment structure makes DIV particularly attractive for income investors who prefer frequent distributions from domestic high-yield stocks. The fund typically includes REITs, utilities, telecommunications, and other sectors known for high dividend yields. DIV appeals to investors seeking concentrated exposure to the highest-yielding domestic stocks with monthly distributions, accepting the risks associated with yield-focused investing strategies. 5. WisdomTree U.S. High Dividend Fund (DHS) Monthly Dividend Data: DHS weights holdings by dividend payments rather than market capitalization while providing monthly distributions, creating a portfolio that emphasizes companies generating the most dividend income with frequent payment schedules. This unique methodology results in higher exposure to companies with the largest absolute dividend payments. With a 5.56% yield and substantial monthly distributions totaling $5.34 annually, DHS offers attractive income from established dividend-paying companies. At $95.98, down just 4.6% from its 52-week high, DHS has delivered exceptional recent performance with a 17.23% 1-year return. The monthly distribution schedule enhances the dividend-weighted approach, providing frequent income flows from the largest dividend-paying companies. The slight positive 5-year dividend CAGR of 0.04% suggests more stable dividend growth compared to other high-yield alternatives. DHS represents an excellent choice for investors seeking exposure to the largest dividend-paying companies with monthly distributions and a methodology that emphasizes dividend income over market size. Bottom Line These five monthly dividend ETFs offer diverse approaches to high-yield investing with the advantage of twelve distributions per year. From sector-specific financial exposure with KBWD's 12.87% yield to global opportunities with SDIV's 10.29% yield and domestic dividend leaders with DHS's dividend-weighted approach, each fund provides unique characteristics for constructing diversified monthly income portfolios. The monthly distribution schedules across all funds enable more efficient reinvestment strategies and smoother cash flow management compared to traditional quarterly dividend alternatives, making them particularly valuable for income-focused investors.
Yahoo
01-06-2025
- Business
- Yahoo
3 Top Dividend ETFs to Buy in June for a Lifetime of Passive Income
The Schwab U.S. Dividend Equity ETF holds 100 high-quality, high-yielding dividend stocks. The Vanguard Utilities ETF invests in utilities, which tend to pay high-yielding and steadily rising dividends. The Vanguard Real Estate ETF holds REITs, many of which have excellent records of increasing their high-yielding payouts. 10 stocks we like better than Vanguard Utilities ETF › Investing in exchange-traded funds (ETFs) makes it super easy to collect passive income. Many funds have income-focused strategies, which enable investors to sit back and watch the income flow into their accounts. The Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD), Vanguard Utilities ETF (NYSEMKT: VPU), and Vanguard Real Estate ETF (NYSEMKT: VNQ) are three of the top dividend ETFs. Each fund should be able to deliver reliable passive income in the decades ahead, making them great ETFs to buy this June to collect income for the rest of your life. The Schwab U.S. Dividend Equity ETF tracks an index (Dow Jones U.S. Dividend 100 Index) that focuses on companies that pay quality, sustainable high-yield dividends. It screens companies based on several dividend quality factors, including yield and five-year dividend growth rate. The fund's focus on higher-yielding stocks provides investors with a higher current income stream. Over the trailing 12 months, the fund has an income yield of around 4%. That's about 3 times higher than the S&P 500's dividend yield (which is around 1.3%). The ETF also aims to hold stocks with solid records of increasing their dividends, which should continue. As a result, the fund has steadily paid out higher distributions to its investors over the years. The fund's current holdings have increased their dividends by more than 8% annually over the past five years. Its balanced blend of yield and growth positions this fund to provide investors with lots of passive income in the decades ahead. The Vanguard Utilities ETF holds companies that operate in the utilities sector. These companies distribute electricity, water, or gas to customers under government-regulated rate structures or long-term contracts. Because of that, they generate stable and growing cash flow. That supports their ability to pay above-average and steadily rising dividends. This ETF currently holds 68 utilities. These companies stand to benefit from the expected surge in power demand over the coming decades. According to some forecasters, catalysts like AI data centers, the onshoring of manufacturing, and the electrification of everything could boost U.S. power demand by 55% by 2040. That should drive up power prices and fuel growth opportunities for utilities to build more power plants and electricity transmission lines. Those growth drivers should give these companies plenty of power to continue increasing their higher-yielding dividends, which should enable the fund to steadily pay higher distributions to its investors. It currently has a 2.9% yield. The Vanguard Real Estate ETF invests in real estate investment trusts (REITs). These entities invest in commercial real estate, such as office buildings, warehouses, and apartments. Those properties produce rental income, the bulk of which REITs must distribute to investors to remain in compliance with IRS regulations. (They don't pay income taxes at the corporate level if they distribute at least 90% of their taxable net income to shareholders.) As a result, REITs tend to pay high-yielding dividends (the ETF currently has a 3.6% income yield). The fund currently holds 158 real estate stocks. Many of these companies have a long history of growing their dividends. Two factors drive dividend growth in the REIT sector: rising rental rates and investments to grow their portfolios. Many long-term leases feature rental escalation clauses, while other property types have shorter-term leases that enable landlords to sign new leases at higher market rates as they expire. Meanwhile, many REITs invest capital to expand their portfolios by developing new properties, completing redevelopment projects, and acquiring properties, portfolios, or other REITs. These drivers increase their rental income, enabling them to grow their dividends. That positions this ETF to steadily distribute more cash to its investors. The Schwab U.S. Dividend Equity ETF, Vanguard Utilities ETF, and Vanguard Real Estate ETF hold companies that tend to pay higher-yielding dividends. Further, many of these companies aim to steadily increase their payouts. Because of that, they are great ETFs to buy this June to set yourself up to potentially collect a lifetime of passive income. Before you buy stock in Vanguard Utilities ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vanguard Utilities ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Matt DiLallo has positions in Schwab U.S. Dividend Equity ETF. The Motley Fool has positions in and recommends Vanguard Real Estate ETF. The Motley Fool has a disclosure policy. 3 Top Dividend ETFs to Buy in June for a Lifetime of Passive Income was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
