25 High-Dividend ETFs and How to Invest in Them

Dividend ETFs offer investors regular income and instant diversification without the trouble of hand-picking individual dividend stocks.
25 High-Dividend ETFs and How to Invest in Them

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Investors looking for regular income often lean on dividend stocks. But an easier way to harness stocks that make regular payments is to purchase dividend exchange-traded funds.

Like much in the world of ETFs, dividend ETFs offer a simple and straightforward solution to getting exposure to a specific investing niche — in this case, stocks that pay a regular dividend. You can take that dividend as income, or reinvest it back into the fund. (See this primer on how dividends work.)

Like a mutual fund, a dividend ETF can contain a selection of stocks that offer broad market exposure, or that focus on certain sectors based on industry, company size or region. Dividend ETFs, like all ETFs, trade like a stock throughout the market day, whereas mutual funds trade after each market close.

» Need a brokerage account? Check out our list of the best brokers for ETF investing.

List of top 25 high-dividend ETFs

Below is a list of 25 high-dividend ETFs, ordered by dividend yield.

Symbol

Fund

Annual dividend yield

Expense Ratio

REVS

Columbia Research Enhanced Value ETF

21.94%

0.19%

AMOM

QRAFT Al-Enhanced U.S. Large Cap Momentum ETF

19.94%

0.75%

QYLD

Global X NASDAQ 100 Covered Call ETF

11.27%

0.60%

NUSI

Nationwide Risk-Managed Income ETF

7.49%

0.68%

UTRN

Vesper U.S. Large Cap Short-Term Reversal Strategy ETF

7.28%

0.75%

JEPI

JPMorgan Equity Premium Income ETF

7.11%

0.35%

VWID

Virtus WMC International Dividend ETF

6.38%

0.49%

ENTR

ERShares Entrepreneurs ETF

6.09%

0.49%

PAK

Global X MSCI Pakistan ETF

5.82%

0.90%

DOO

WisdomTree International Dividend ex-Financials Fund

5.55%

0.58%

FTRI

First Trust Indxx Global Natural Resources Income ETF

5.41%

0.70%

CEY

VictoryShares Emerging Market High Dividend Volatility Wtd ETF

5.34%

0.50%

QYLG

Global X Nasdaq 100 Covered Call & Growth ETF

5.24%

0.60%

SPYD

SPDR Portfolio S&P 500 High Dividend ETF

4.90%

0.07%

DEM

WisdomTree Emerging Markets High Dividend Fund

4.89%

0.63%

WOMN

Impact Shares YWCA Women's Empowerment ETF

4.89%

0.75%

CID

VictoryShares International High Div Volatility Wtd ETF

4.85%

0.45%

DTH

WisdomTree International High Dividend Fund

4.80%

0.58%

PDEV

Principal International Multi-Factor ETF

4.77%

0.25%

EZA

iShares MSCI South Africa ETF

4.68%

0.59%

GCOW

Pacer Global Cash Cows Dividend ETF

4.39%

0.60%

AZAA

AllianzIM U.S. Large Cap Buffer10 Apr ETF

4.21%

0.74%

OVF

Overlay Shares Foreign Equity ETF

4.16%

0.95%

IDHD

Invesco S&P Intl Developed High Dividend Low Volatility ETF

3.98%

0.30%

IDOG

ALPS International Sector Dividend Dogs ETF

3.91%

0.50%

Data current as of November 9, 2021. Inverse, leveraged and hedged ETFs are excluded, as are ETFs with expense ratios over 1%.

How to invest in dividend ETFs

A dividend ETF typically includes dozens, if not hundreds, of dividend stocks. That instantly provides you with diversification, which means greater safety for your payout. Even if a few of the fund’s stocks cut their dividends, the effect will be minimal on the fund’s overall dividend. A safe payout should be your top consideration in buying any dividend investment.

Here’s how to buy a dividend stock ETF:

1. Find a broadly diversified dividend ETF. You can typically find dividend ETFs by searching for them on your broker's website. (No broker? Here's how to open a brokerage account.)

Probably the safest choice is a low-cost fund that picks dividend stocks from the S&P 500 stock index. That offers a broadly diversified package of top U.S. companies.

2. Analyze the ETF. Make sure the ETF is invested in stocks (also called equities), not bonds. You’ll also want to check the following:

  • The dividend yield. This is how much a company pays out in dividends each year relative to its share price, and is usually expressed as a percentage.

  • 5-year returns. Generally, higher is better.

  • Expense ratio. This is the ETF's annual fee, paid out of your investment in the fund. Look for an expense ratio that is under 0.50%, but lower is better.

  • Stock size. Dividend ETFs can be invested in companies with large, medium or small capitalization (referred to as large caps, mid caps and small caps). Large caps are generally the safest, while small caps are the riskiest.

3. Buy the ETF. You can buy ETFs just like you’d buy a stock, through an online broker. A good approach is to buy them regularly, to take advantage of dollar-cost averaging.

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Learn more about sector ETFs:

Disclosure: The author held no positions in the aforementioned investments at the original time of publication.

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