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

Best Dividend ETFs in 2025 – Earn Passive Income with High Yields

ETFs
February 28, 2025

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 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: 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

✅ 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.

3️⃣ 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.

4️⃣ 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.

5️⃣ 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.