High Dividend ETFs
Taking into account extremely growing popularity of exchange-traded funds (ETFs) and the proven benefits of dividend investing strategies, it becomes important to explore ETFs focused on dividends for private investor.High dividend ETFs primarily hold a basket of dividend-paying stocks and pay out a dividend at regular intervals
List of top 25 high-dividend ETFs
Below is a list of 25 high-dividend ETFs, ordered by dividend yield.
Symbol | Fund | Dividend Yield | Expense Ratio |
|---|---|---|---|
SDIV | Global X SuperDividend ETF | 10.37% | 0.59% |
DVYE | iShares Emerging Markets Dividend ETF | 9.52% | 0.49% |
SDEM | Global X MSCI SuperDividend Emerging Markets ETF | 9.05% | 0.66% |
DIV | Global X SuperDividend U.S. ETF | 8.44% | 0.46% |
EFAS | Global X MSCI SuperDividend EAFE ETF | 7.26% | 0.56% |
FGD | First Trust Dow Jones Global Select Dividend Index Fund | 6.88% | 0.59% |
WBIY | WBI Power Factor High Dividend ETF | 6.58% | 0.70% |
DEM | WisdomTree Emerging Markets High Dividend Fund | 6.46% | 0.63% |
IDV | iShares International Select Dividend ETF | 6.44% | 0.49% |
DVYA | iShares Asia/Pacific Dividend ETF | 6.39% | 0.49% |
FDD | First Trust Stoxx European Select Dividend Index Fund | 6.34% | 0.58% |
WDIV | SPDR S&P Global Dividend ETF | 6.26% | 0.40% |
FID | First Trust S&P International Dividend Aristocrats ETF | 6.21% | 0.60% |
FIDI | Fidelity International High Dividend ETF | 6.11% | 0.39% |
RDIV | Invesco S&P Ultra Dividend Revenue ETF | 5.84% | 0.39% |
EDIV | SPDR S&P Emerging Markets Dividend ETF | 5.77% | 0.49% |
HDAW | Xtrackers MSCI All World ex U.S. High Dividend Yield Equity ETF | 5.62% | 0.20% |
PEY | Invesco High Yield Equity Dividend Achievers ETF | 5.60% | 0.52% |
DTH | WisdomTree International High Dividend Fund | 5.54% | 0.58% |
VWID | Virtus WMC International Dividend ETF | 5.52% | 0.49% |
DEW | WisdomTree Global High Dividend Fund | 5.44% | 0.58% |
HDEF | Xtrackers MSCI EAFE High Dividend Yield Equity ETF | 5.38% | 0.20% |
FDL | First Trust Morningstar Dividend Leaders Index Fund | 5.10% | 0.45% |
VYMI | Vanguard International High Dividend Yield ETF | 5.04% | 0.27% |
DHS | WisdomTree U.S. High Dividend Fund | 5.03% | 0.38% |
Data current as of Dec. 5, 2020.
How to chose high dividend ETFs to invest
There are hundreds of high dividend ETFs traded at global markets. ETF typically includes dozens, if not hundreds, of above average paying dividend stocks. Of coursw ir provides sort of diversifications, but does nor guarantee constant passive income.
Here’s how to buy a dividend stock ETF:
1. Find a broadly diversified dividend ETF. You can typically find dividend ETFs by searching for them on your broker’s website.
Probably the safest choice is a low-cost fund that picks dividend stocks from the S&P 500 stock index. That offers a broadly diversified package of top U.S. companies.
2. Analyze the ETF. Make sure the ETF is invested in stocks (also called equities), not bonds. You’ll also want to check the following:
The dividend yield. This is how much a company pays out in dividends each year relative to its share price, and is usually expressed as a percentage.
5-year returns. Generally, higher is better.
Expense ratio. This is the ETF’s annual fee, paid out of your investment in the fund. Look for an expense ratio that is under 0.50%, but lower is better.
Stock size. Dividend ETFs can be invested in companies with large, medium or small capitalization (referred to as large caps, mid caps and small caps). Large caps are generally the safest, while small caps are the riskiest.
3. Buy the ETF. You can buy ETFs just like you’d buy a stock, through an online broker. A good approach is to buy them regularly, to take advantage of dollar-cost averaging.