Best Dividend ETFs in 2025 – Earn High-Yield Passive Income

Why Invest in Dividend ETFs?

Dividend ETFs focus on companies that consistently pay dividends, providing investors with a steady income stream while still benefiting from market growth. These ETFs are ideal for retirement accounts and long-term portfolios.

Key Benefits of Dividend ETFs:

Regular Income – Earn quarterly or monthly dividends
Lower Risk – Invest in stable, well-established companies
Diversification – Exposure to multiple high-yield stocks
Passive Growth – Benefit from both dividends and capital appreciation

Top Dividend ETFs for 2025 Schwab U.S. Dividend Equity ETF (SCHD) – Best Overall Dividend ETF

Expense Ratio: 0.06% Dividend Yield: 3.5% Top Holdings: Home Depot, Pfizer, Coca-Cola Why Invest? SCHD offers a solid dividend yield with strong capital growth potential.

Vanguard High Dividend Yield ETF (VYM) – Best for Long-Term Income

Expense Ratio: 0.06% Dividend Yield: 3.2% Top Holdings: Johnson & Johnson, JPMorgan Chase, Procter & Gamble Why Invest? VYM focuses on high-yield dividend stocks, ideal for long-term passive income.

iShares Select Dividend ETF (DVY) – Best for Stability

Expense Ratio: 0.38% Dividend Yield: 3.8% Top Holdings: Verizon, Chevron, Lockheed Martin Why Invest? DVY includes high-dividend stocks with consistent payouts, making it great for risk-averse investors.

SPDR S&P Dividend ETF (SDY) – Best for Dividend Growth

Expense Ratio: 0.35% Dividend Yield: 3.0% Top Holdings: AT&T, ExxonMobil, IBM Why Invest? SDY focuses on companies with a long history of increasing dividends.

Global X SuperDividend ETF (SDIV) – Best for High Yields

Expense Ratio: 0.59% Dividend Yield: 7.2% Top Holdings: High-yield global stocks Why Invest? SDIV is ideal for investors looking for maximum income with international diversification.

How to Choose the Best Dividend ETF for You?

Before investing, consider: