Exchange-traded funds (ETFs) are a popular investment option for those looking to diversify their portfolio and generate passive income through dividends. In this article, we will explore the top 10 highest dividend-paying ETF funds in 2021.
1. Vanguard High Dividend Yield ETF (VYM): With a dividend yield of over 3%, VYM is a top choice for investors seeking high dividend payouts. This fund focuses on large-cap stocks with strong dividend growth potential.
2. iShares Select Dividend ETF (DVY): DVY offers a dividend yield of around 3%, making it one of the highest-paying dividend ETFs. This fund invests in companies with a history of consistent dividend payments.
3. SPDR S&P Dividend ETF (SDY): SDY has a dividend yield of approximately 2.5% and tracks the performance of high-yielding dividend aristocrats. This ETF is ideal for investors seeking a balance of dividend income and capital appreciation.
4. Schwab U.S. Dividend Equity ETF (SCHD): SCHD offers a dividend yield of over 3% and focuses on high-quality dividend-paying companies in the U.S. This fund is known for its low expense ratio and strong performance.
5. iShares Core Dividend Growth ETF (DGRO): DGRO has a dividend yield of around 2% and invests in companies with a history of consistent dividend growth. This fund is ideal for long-term investors seeking both dividend income and capital growth.
6. Invesco High Yield Equity Dividend Achievers ETF (PEY): PEY offers a dividend yield of over 4% and focuses on high-yield dividend stocks with a history of consistent dividend payments. This ETF is suitable for income-focused investors looking for high dividend payouts.
7. WisdomTree U.S. Quality Dividend Growth Fund (DGRW): DGRW has a dividend yield of around 2% and invests in companies with strong fundamentals and growth potential. This fund is ideal for investors seeking a balance of dividend income and capital appreciation.
8. First Trust Value Line Dividend Index Fund (FVD): FVD offers a dividend yield of approximately 2.5% and tracks the performance of companies with high dividend yields and low volatility. This ETF is suitable for risk-averse investors looking for stable income.
9. ProShares S&P 500 Dividend Aristocrats ETF (NOBL): NOBL has a dividend yield of around 2% and tracks the performance of companies that have increased their dividends for at least 25 consecutive years. This fund is ideal for investors seeking a reliable source of dividend income.
10. Global X SuperDividend ETF (SDIV): SDIV offers a dividend yield of over 7% and invests in a diversified portfolio of high-yield dividend stocks from around the world. This ETF is suitable for income-focused investors looking for high dividend payouts and global diversification.