Best Dividend ETFs in 2025 – Earn Passive Income with High Yields
Looking for reliable dividend ETFs to generate steady income? This guide highlights the top dividend-paying ETFs for 2025, perfect for income-focused investors.
Discover the best dividend ETFs for 2025, offering high yields and steady 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.
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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 5 Dividend ETFs for 2025
1️⃣ Schwab U.S. Dividend Equity ETF (SCHD) – Best Overall Dividend ETF
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Expense Ratio: 0.06%
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Dividend Yield: 3.5%
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Top Holdings: Home Depot, Pfizer, Coca-Cola
Why Invest? SCHD offers a
solid dividend yield with strong capital growth potential.
2️⃣ Vanguard High Dividend Yield ETF (VYM) – Best for Long-Term Income
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Expense Ratio: 0.06%
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Dividend Yield: 3.2%
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Top Holdings: Johnson & Johnson, JPMorgan Chase, Procter & Gamble
Why Invest? VYM focuses on
high-yield dividend stocks, ideal for
long-term passive income.
3️⃣ iShares Select Dividend ETF (DVY) – Best for Stability
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Expense Ratio: 0.38%
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Dividend Yield: 3.8%
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Top Holdings: Verizon, Chevron, Lockheed Martin
Why Invest? DVY includes
high-dividend stocks with consistent payouts, making it great for
risk-averse investors.
4️⃣ SPDR S&P Dividend ETF (SDY) – Best for Dividend Growth
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Expense Ratio: 0.35%
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Dividend Yield: 3.0%
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Top Holdings: AT&T, ExxonMobil, IBM
Why Invest? SDY focuses on
companies with a long history of increasing dividends.
5️⃣ Global X SuperDividend ETF (SDIV) – Best for High Yields
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Expense Ratio: 0.59%
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Dividend Yield: 7.2%
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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: