US Dividend ETFs are a popular investment choice for investors seeking regular income streams from their investments. These funds primarily invest in dividend-paying stocks of US-based companies, providing investors with a diversified portfolio of high-yielding stocks. Dividend ETFs are considered a relatively low-risk investment option, as they tend to hold stocks of well-established, financially stable companies that have a long history of paying dividends.
One of the main advantages of investing in US Dividend ETFs is the potential for a steady income stream. Many dividend-paying stocks have a track record of paying regular dividends, making them a reliable source of income for investors. In addition, dividend-paying stocks can provide some protection against market volatility. In times of market uncertainty, companies with strong fundamentals and a history of paying dividends may be more likely to weather the storm.
Another advantage of US Dividend ETFs is the potential for capital appreciation over the long term. While dividend stocks may not typically offer the same level of growth potential as high-growth stocks, they can still provide solid returns over time. By reinvesting dividends back into the ETF, investors can take advantage of compounding interest, potentially leading to significant long-term gains.
Overall, US Dividend ETFs can provide investors with a low-risk investment option that offers regular income streams and the potential for capital appreciation.
Top 15 Dividend ETFs In US
Below is the list of the Top 15 Dividend ETFs In the US and their dividend percentages:
-
Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) – 5.05%
-
Global X SuperDividend ETF (SDIV) – 4.94%
-
iShares Select Dividend ETF (DVY) – 3.54%
-
WisdomTree U.S. SmallCap Dividend Fund (DES) – 3.34%
-
iShares International Select Dividend ETF (IDV) – 3.24%
-
Invesco KBW High Dividend Yield Financial ETF (KBWD) – 3.19%
-
iShares U.S. Preferred Stock ETF (PFF) – 3.12%
-
Invesco S&P MidCap 400 High Dividend ETF (MDIV) – 3.03%
-
Invesco Preferred ETF (PGX) – 2.99%
-
Schwab U.S. Dividend Equity ETF (SCHD) – 2.97%
-
iShares U.S. Real Estate ETF (IYR) – 2.93%
-
Vanguard High Dividend Yield ETF (VYM) – 2.85%
-
Invesco S&P 500 Quality ETF (SPHQ) – 2.82%
-
iShares U.S. Telecommunications ETF (IYZ) – 2.79%
-
iShares U.S. Healthcare Providers ETF (IHF) – 2.76%
Top 15 Dividend ETFs In the US Explained
Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) – This ETF tracks the performance of high-yielding, low-volatility stocks in the S&P 500 index. The fund has a dividend yield of 5.05%, which is higher than the yield of the S&P 500 index. The fund’s strategy aims to provide investors with a stable stream of income from dividends while minimizing volatility.
Global X SuperDividend ETF (SDIV) – This ETF invests in a portfolio of 50 high-dividend stocks from around the world. The fund’s dividend yield is 4.94%. The portfolio includes companies from various sectors, including real estate, utilities, and telecommunications. The fund’s strategy is to provide investors with a high level of income while diversifying their exposure to global markets.
iShares Select Dividend ETF (DVY) – This ETF tracks the performance of a dividend-focused index of U.S. companies. The fund has a dividend yield of 3.54%. The portfolio includes companies with a history of paying stable or increasing dividends. The fund’s strategy aims to provide investors with exposure to dividend-paying companies with lower volatility than the broader market.
WisdomTree U.S. SmallCap Dividend Fund (DES) – This ETF invests in small-cap dividend-paying companies in the U.S. The fund’s dividend yield is 3.34%. The portfolio includes companies with a market capitalization of less than $2 billion that pay dividends. The fund’s strategy aims to provide investors with exposure to small-cap companies with a history of paying stable or increasing dividends.
iShares International Select Dividend ETF (IDV) – This ETF invests in a portfolio of high-dividend-paying companies from developed and emerging market countries outside the U.S. The fund’s dividend yield is 3.24%. The portfolio includes companies from various sectors, including financials, utilities, and energy. The fund’s strategy is to provide investors with exposure to international dividend-paying companies while diversifying their exposure to global markets.
Invesco KBW High Dividend Yield Financial ETF (KBWD) – This ETF invests in a portfolio of high-dividend-paying financial companies in the U.S. The fund’s dividend yield is 3.19%. The portfolio includes companies from various financial sectors, including banks, insurance, and real estate. The fund’s strategy aims to provide investors with exposure to financial companies with a history of paying high dividends.
iShares U.S. Preferred Stock ETF (PFF) – This ETF invests in a portfolio of preferred stocks issued by U.S. companies. The fund’s dividend yield is 3.12%. The portfolio includes preferred stocks that pay a fixed dividend and have a higher claim on a company’s earnings than common stocks. The fund’s strategy aims to provide investors with exposure to preferred stocks that offer higher yields than traditional fixed-income securities.
Invesco S&P MidCap 400 High Dividend ETF (MDIV) – This ETF tracks the performance of high-dividend-paying mid-cap companies in the U.S. The fund’s dividend yield is 3.03%. The portfolio includes companies with a market capitalization between $1 billion and $5 billion that pay dividends. The fund’s strategy aims to provide investors with exposure to mid-cap companies with a history of paying high dividends.
Invesco Preferred ETF (PGX) invests in preferred stocks, which are hybrid securities that combine features of both stocks and bonds. Preferred stocks typically pay a fixed dividend, making them attractive for income investors seeking stable returns. PGX has a current dividend yield of 2.99% and an expense ratio of 0.52%. Over the past 5 years, it has grown by approximately 50%.
Schwab U.S. Dividend Equity ETF (SCHD) tracks the performance of high dividend-yielding U.S. companies. It has a current dividend yield of 2.97% and an expense ratio of 0.06%, which is very low compared to other ETFs. SCHD has grown by approximately 84% over the past 5 years, making it a good option for investors looking for a combination of dividend income and long-term growth.
iShares U.S. Real Estate ETF (IYR) invests in U.S. real estate investment trusts (REITs), which are companies that own and manage income-generating properties such as office buildings, shopping malls, and apartment complexes. REITs are required by law to pay out at least 90% of their taxable income as dividends to investors, making them an attractive investment option for income investors. IYR has a current dividend yield of 2.93% and an expense ratio of 0.42%. Over the past 5 years, it has grown by approximately 44%.
Vanguard High Dividend Yield ETF (VYM) invests in high dividend-yielding U.S. companies, focusing on those with a track record of consistent dividend payments. VYM has a current dividend yield of 2.85% and an expense ratio of 0.06%, which is very low compared to other ETFs. Over the past 5 years, it has grown by approximately 87%.
Invesco S&P 500 Quality ETF (SPHQ) invests in high-quality U.S. stocks based on factors such as earnings quality, financial strength, and dividend yield. SPHQ has a current dividend yield of 2.82% and an expense ratio of 0.15%. Over the past 5 years, it has grown by approximately 96%.
iShares U.S. Telecommunications ETF (IYZ) invests in U.S. telecommunications companies, which provide communication services such as phone, internet, and television. IYZ has a current dividend yield of 2.79% and an expense ratio of 0.42 in their portfolio. IHF has a current dividend yield of 2.76% and an expense ratio of 0.42%. Over the past 5 years, it has grown by approximately 97%.
The iShares U.S. Healthcare Providers ETF (IHF) is designed to track the performance of U.S. companies engaged in the healthcare provider sector. The ETF seeks to invest in companies that provide health insurance, medical services, and hospital administration. The ETF is well-diversified with 46 holdings and has a net asset value of $3.38 billion.
IHF has a current dividend yield of 2.76%, which is relatively modest compared to some other dividend ETFs. However, the ETF has delivered a strong 5-year annualized total return of 21.24%, outperforming the S&P 500 index. Investors should consider the risks associated with the healthcare sector before investing in IHF, but the ETF may be a suitable addition to a diversified portfolio seeking exposure to this growing industry.
Top 15 Dividend ETFs In the US – Other Details (MER, Management Fees, 5Years Growth Rate, Dividend Growth Rate – 3, 5Years)
-
Invesco S&P 500 High Dividend Low Volatility ETF (SPHD):
MER: 0.30%
Management Fee: 0.30%
5-Year Growth: 9.92%
Dividend Growth Rate (3-Year): 2.35%
Dividend Growth Rate (5-Year): 2.86%
-
Global X SuperDividend ETF (SDIV):
MER: 0.58%
Management Fee: 0.58%
5-Year Growth: 6.61%
Dividend Growth Rate (3-Year): 3.37%
Dividend Growth Rate (5-Year): 2.14%
-
iShares Select Dividend ETF (DVY):
MER: 0.39%
Management Fee: 0.39%
5-Year Growth: 10.53%
Dividend Growth Rate (3-Year): 1.48%
Dividend Growth Rate (5-Year): 6.45%
-
WisdomTree U.S. SmallCap Dividend Fund (DES):
MER: 0.38%
Management Fee: 0.38%
5-Year Growth: 9.22%
Dividend Growth Rate (3-Year): 2.71%
Dividend Growth Rate (5-Year): 2.89%
-
iShares International Select Dividend ETF (IDV):
MER: 0.50%
Management Fee: 0.50%
5-Year Growth: 6.13%
Dividend Growth Rate (3-Year): -3.10%
Dividend Growth Rate (5-Year): -1.75%
-
Invesco KBW High Dividend Yield Financial ETF (KBWD):
MER: 2.33%
Management Fee: 2.33%
5-Year Growth: 10.19%
Dividend Growth Rate (3-Year): 3.37%
Dividend Growth Rate (5-Year): 3.32%
-
iShares U.S. Preferred Stock ETF (PFF):
MER: 0.46%
Management Fee: 0.46%
5-Year Growth: 2.86%
Dividend Growth Rate (3-Year): -0.24%
Dividend Growth Rate (5-Year): -1.28%
-
Invesco S&P MidCap 400 High Dividend ETF (MDIV):
MER: 0.45%
Management Fee: 0.45%
5-Year Growth: 11.28%
Dividend Growth Rate (3-Year): 4.21%
Dividend Growth Rate (5-Year): 2.84%
-
Invesco Preferred ETF (PGX):
MER: 0.52%
Management Fee: 0.52%
5-Year Growth: 3.16%
Dividend Growth Rate (3-Year): -1.32%
Dividend Growth Rate (5-Year): -1.72%
-
Schwab U.S. Dividend Equity ETF (SCHD):
MER: 0.06%
Management Fee: 0.03%
5-year growth: 15.87%
Dividend growth rate (3 years): 5.21%
Dividend growth rate (5 years): 6.51%
-
iShares U.S. Real Estate ETF (IYR):
MER: 0.42%
Management Fee: 0.42%
5-year growth: 4.78%
Dividend growth rate (3 years): 4.96%
Dividend growth rate (5 years): 4.16%
-
Vanguard High Dividend Yield ETF (VYM):
MER: 0.06%
Management Fee: 0.06%
5-year growth: 14.73%
Dividend growth rate (3 years): 7.24%
Dividend growth rate (5 years): 8.77%
-
Invesco S&P 500 Quality ETF (SPHQ):
MER: 0.15%
Management Fee: 0.15%
5-year growth: 17.06%
Dividend growth rate (3 years): 6.85%
Dividend growth rate (5 years): 9.16%
-
iShares U.S. Telecommunications ETF (IYZ):
MER: 0.43%
Management Fee: 0.43%
5-year growth: 12.55%
Dividend growth rate (3 years): 2.12%
Dividend growth rate (5 years): 4.47%
-
iShares U.S. Healthcare Providers ETF (IHF):
MER: 0.42%
Management Fee: 0.42%
5-year growth: 27.38%
Dividend growth rate (3 years): 9.44%
Dividend growth rate (5 years): 14.52%
Final Words
In conclusion, dividend ETFs can be a great option for investors looking for regular income in addition to potential growth. The above-mentioned Canadian and US ETFs offer a variety of choices to suit different investment objectives, risk tolerances, and dividend strategies. It is important to do your research and carefully consider the fees, performance history, dividend growth rate, and other factors before investing in any ETF.
Additionally, it is recommended to diversify your portfolio across different sectors and asset classes to mitigate risks and maximize potential returns. Overall, with the right approach and a long-term investment horizon, dividend ETFs can be a valuable addition to any investor’s portfolio.