Best Dividend ETFs in 2025 – Earn Passive Income & Growth

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

ETFs
February 27, 2025

Why Invest in Dividend ETFs?

Dividend ETFs are an excellent way to generate passive income while benefiting from long-term capital appreciation. They hold stocks of companies with consistent dividend payouts, making them ideal for retirees and income-focused investors.

Key Benefits of Dividend ETFs:
✅ Steady Income – Receive regular dividend payouts
✅ Lower Risk – Invest in financially strong companies
✅ Diversification – Exposure to multiple dividend-paying stocks
✅ Tax Efficiency – Many dividend ETFs have favorable tax treatment

Top 5 Dividend ETFs for 2025

1️⃣ Schwab U.S. Dividend Equity ETF (SCHD) – Best Overall

✅ Expense Ratio: 0.06%
✅ Dividend Yield: 3.5%
✅ Top Holdings: Broadcom, Coca-Cola, PepsiCo, Home Depot
Why Invest? SCHD focuses on high-quality dividend stocks with strong fundamentals and long-term growth potential.

2️⃣ Vanguard Dividend Appreciation ETF (VIG) – Best for Dividend Growth

✅ Expense Ratio: 0.06%
✅ Dividend Yield: 2.0%
✅ Top Holdings: Johnson & Johnson, Microsoft, Walmart
Why Invest? VIG invests in companies with a history of increasing dividends, making it a great option for long-term growth.

3️⃣ iShares Select Dividend ETF (DVY) – Best for High Yield

✅ Expense Ratio: 0.38%
✅ Dividend Yield: 4.0%
✅ Top Holdings: Altria, Verizon, IBM, Chevron
Why Invest? DVY focuses on high-yield dividend stocks, providing strong income potential for passive investors.

4️⃣ SPDR S&P Dividend ETF (SDY) – Best for Dividend Aristocrats

✅ Expense Ratio: 0.35%
✅ Dividend Yield: 2.8%
✅ Top Holdings: 3M, Realty Income, Amcor
Why Invest? SDY tracks dividend aristocrats, companies that have consistently increased dividends for 25+ years.

5️⃣ iShares Core High Dividend ETF (HDV) – Best for Stability

✅ Expense Ratio: 0.08%
✅ Dividend Yield: 3.9%
✅ Top Holdings: ExxonMobil, JPMorgan Chase, Procter & Gamble
Why Invest? HDV invests in high-quality, stable dividend stocks, perfect for long-term passive income.