Best Dividend ETFs in 2025 – Earn Passive Income

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

ETFs
February 28, 2025

Why Invest in Dividend ETFs?

Dividend ETFs are an excellent way to earn passive income while benefiting from long-term capital appreciation. These funds invest in high-quality dividend-paying stocks, providing both stability and growth potential.

Key Benefits of Dividend ETFs:
✅ Steady Income – Earn regular dividends, even in volatile markets
✅ Lower Risk – Dividend-paying companies tend to be more stable
✅ Compounding Growth – Reinvesting dividends enhances long-term returns
✅ Diversification – Exposure to multiple high-dividend stocks in a single fund

Top 5 Dividend ETFs for 2025

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

✅ Expense Ratio: 0.06%
✅ Dividend Yield: 3.5%
✅ Top Holdings: Pfizer, Broadcom, Coca-Cola
Why Invest? SCHD offers a combination of strong dividends and growth potential, making it ideal for long-term investors.

2️⃣ Vanguard High Dividend Yield ETF (VYM) – Best for High-Yield Stocks

✅ Expense Ratio: 0.06%
✅ Dividend Yield: 3.1%
✅ Top Holdings: Johnson & Johnson, Procter & Gamble, JPMorgan Chase
Why Invest? VYM focuses on high-dividend large-cap stocks, providing steady returns.

3️⃣ iShares Select Dividend ETF (DVY) – Best for Dividend Stability

✅ Expense Ratio: 0.38%
✅ Dividend Yield: 3.8%
✅ Top Holdings: AT&T, Verizon, Altria Group
Why Invest? DVY holds financially stable companies with a long history of dividend payments.

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

✅ Expense Ratio: 0.35%
✅ Dividend Yield: 2.9%
✅ Top Holdings: ExxonMobil, PepsiCo, Chevron
Why Invest? SDY invests in companies with at least 20 years of consistent dividend growth.

5️⃣ Global X SuperDividend ETF (SDIV) – Best for High Monthly Income

✅ Expense Ratio: 0.58%
✅ Dividend Yield: 7.0%
✅ Top Holdings: International dividend-paying stocks
Why Invest? SDIV is ideal for investors looking for monthly high-yield dividends.