If you’re looking for a simple way to diversify your portfolio and create a lifetime of passive income, you may want to look at some of these top exchange-traded funds.
In most cases, dividend ETFs offer solid diversification, low expense ratios, and tax efficiency. For example, the Global X Super Dividend U.S. ETF (NYSE:DIV), which we talk more about below, offers you exposure to a diversified portfolio of respected companies that have a history of paying dividends, which can provide that steady stream of income you may be hunting for.
If that’s what you’re looking for, here are just a few of the top dividend ETFs to buy today.
Key Points About This Article:
- Protect your portfolio from market volatility with strong dividend ETFs.
- These ETFs offer strong exposure to portfolio diversification and dividends.
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Invesco QQQ Income Advantage ETF
With a yield of 10.48%, the Invesco QQQ Income Advantage ETF (NASDAQ:QQA) offers exposure to the NASDAQ-100 index plus an option income overlay for income generation.
Some of its top holdings include Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA), Microsoft (NASDAQ:MSFT), Broadcom (NASDAQ:AVGO), Amazon (NASDAQ:AMZN) and Tesla (NASDAQ:TSLA) to name just a few. It also has an expense ratio of 0.29%.
Since bottoming out in August at $43.50, the ETF is now up to $49.17. From here, we’d like to see it test $55 near term.
JPMorgan Nasdaq Equity Premium Equity Income ETF
With a yield of 9.72%, the JPMorgan Nasdaq Equity Premium Equity Income ETF (NASDAQ:JEPQ) generates income by selling options and by investing in U.S. large-cap growth stocks. All of which allows it to deliver a monthly income stream through options premiums and stock dividends. Even better, investors have also benefited from the ETF’s appreciation.
JEPQ has an expense ratio of 0.35% at the moment.
The ETF has also been in a strong, sustained uptrend since November. In fact, after bottoming out at around $41, it’s now up to $55.25. We’d like to see it initially test $60.
JPMorgan Equity Premium Income Fund
With a yield of 7.09%, the JPMorgan Equity Premium Income Fund (NYSE:JEPI) generates income through stock dividends and options premium. Some of its top holdings include Trane Technologies (NYSE:TT), Meta Platforms, Southern Co. (NYSE:SO), AbbVie (NYSE:ABBV), Mastercard (NYSE:MA), Amazon.com, Microsoft and ServiceNow (NYSE:NOW) to name just a few of the top holdings. JEPI has an expense ratio of 0.35%.
It’s also been in a strong uptrend. Since November, it ran from about $48 to $59.39. We’d like to see it initially test $65 near term.
Global X Super Dividend U.S. ETF
With a yield of 6%, the Global X Super Dividend U.S. ETF invests in some of the highest dividend-yielding stocks in the U.S. Some of those top holdings include Spire (NYSE:SR), Kinder Morgan (NYSE:KMI), Omega Healthcare (NYSE:OHI), Philip Morris (NYSE:PM), Duke Energy (NYSE:DUK), AT&T (NYSE:T) and Dominion Energy (NYSE:D) to name just a few.
The DIV ETF has an expense ratio of 0.45%.
Since November, the DIV ETF ran from a low of $14.50 to $18.54. We’d like to see it initially test $25 a share near term.
SPDR Portfolio S&P 500 High Dividend ETF
With a yield of 4.04% and an expense ratio of 0.07%, the SPDR Portfolio S&P 500 High Dividend ETF (NYSE:SPYD) tracks the total return performance of the S&P 500 High Dividend Index, which is designed to measure the performance of the top 80 high dividend stocks on the S&P 500.
Some of its top holdings include IBM (NYSE:IBM), Williams Cos. (NYSE:WMB), Gilead Sciences (NASDAQ:GILD), Entergy Corp. (NYSE:ETR) and Kellanova (NYSE:K) to name just a few. Since November, the SPYD ETF ran from $32 to a high of $45.72. We’d like to see it closer to $50 a share.
Fidelity High Dividend ETF
With a yield of 2.87% and an expense ratio of 0.15%, the Fidelity High Dividend ETF (NYSE:FDVV) tracks the Fidelity High Dividend Index, which is designed to reflect the performance of stocks of large- and mid-capitalization dividend-paying companies that are expected to continue to pay and grow their dividends.
Some of its top holdings include Apple, Nvidia, Microsoft, Broadcom, Exxon Mobil (NYSE:XOM), Procter & Gamble (NYSE:PG) and Philip Morris (NYSE:PM).
iShares Core High Dividend ETF
With a yield of 3.63% and an expense ratio of 0.08%, the iShares Core High Dividend ETF (NYSE:HDV) tracks the investment results of an index composed of relatively high dividend-paying U.S. equities. Some of its top holdings include Exxon Mobil, Chevron (NYSE:CVX), and Johnson & Johnson (NYSE:JNJ) to name just a few.
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