The best ETFs with high dividends are those that offer a consistent and attractive yield, typically above 4%, and are well-diversified across a significant number of holdings. Here are some of the top options:
- SPDR Blackstone High Income ETF (HYBL): This ETF has a dividend yield of 4.9% and invests in a diversified portfolio of high-yielding securities, including corporate bonds, preferred stock, and other income-producing instruments1.
- Alerian MLP ETF (AMLP): With a dividend yield of 8.1%, AMLP is one of the highest dividend-yielding ETFs on the market. It focuses on master limited partnerships (MLPs), which are companies that generate most of their income from operating toll roads, pipelines, and other infrastructure-related assets1.
- SPDR Portfolio S&P 500 High Dividend ETF (SPYD): This ETF has a dividend yield of 4.5% and tracks the S&P 500 High Dividend Index, which consists of the top 50 U.S. companies by dividend yield within the S&P 500 index1.
- Vanguard Dividend Appreciation ETF (VIG): VIG has a dividend yield of 1.8% and focuses on companies that have a history of consistently increasing dividends. Its top holdings include large-cap stocks like Microsoft, Apple, and Broadcom2.
- Vanguard High Dividend Yield ETF (VYM): VYM has a dividend yield of 4.1% and holds a diversified portfolio of U.S. stocks with a high dividend yield. Its holdings include a mix of large-cap and mid-cap companies2.
When selecting ETFs with high dividends, it's important to consider factors such as the sustainability of dividends, the overall investment strategy, and the level of diversification. High-dividend ETFs can be an attractive option for income-focused investors, but it's crucial to conduct thorough due diligence before investing.