Top 5 High-Yield Dividend ETFs to Watch in 2024

periodically review your investment portfolio to ensure alignment with your evolving financial goals, especially during times of global economic shifts. Exchange-Traded Funds (ETFs) are a popular choice, offering exposure to collections of companies known for consistent dividend payments. Combining features of mutual funds and stocks, ETFs provide diversified investment opportunities.

Here are five leading high-dividend ETFs to consider in 2024:

Vanguard Total Stock Market ETF (VTI)

Tracking the CRSP US Total Market Index, VTI represents nearly all investable U.S. stocks, including micro-cap to large-cap companies. As of March 2024, its SEC yield is approximately 2.20%, with a minimal expense ratio of 0.03%.

Vanguard Dividend Growth ETF (VIG)

This ETF follows the NASDAQ US Dividend Achievers Select Index, with around 182 stocks of companies that have a history of increasing dividends. The expense ratio is 0.06%, and the SEC yield is roughly 1.80% as of December 2023.

Vanguard High Dividend Yield ETF (VYM)

VYM tracks the FTSE High Dividend Yield Index, covering approximately 404 stocks of high-dividend companies as of late 2023. Its SEC yield is estimated at 3.23%, with an expense ratio of 0.06%.

SPDR S&P Dividend ETF (SDY)

Rated highly by Morningstar, SDY tracks the S&P High Yield Dividend Aristocrats Index, consisting of over 100 companies with a strong dividend growth record. As of December 2023, its yield was 2.5%, with an expense ratio of 0.35%.

iShares Select Dividend ETF (DVY)

Managed by BlackRock, DVY invests in about 100 companies with a five-year history of high dividends. The SEC yield stands at 3.56%, with an expense ratio of 0.39%.

Investment tips:

ETFs are versatile investment tools, allowing exposure to entire markets, specific sectors, or niche segments. Focus on funds with a consistent history of dividend growth to maximize income. Always research past performance, available online, through fund websites or tracking tools. Review the annual payout details to gauge effective yields and consider calculating dividend yields by dividing the latest dividend per share by the fund’s net asset value (NAV).