The Best Dividend ETFs for Sustainable Growth News ad

For conservative investors seeking stable income and long-term growth, dividend ETFs offer a reliable buy-and-hold strategy. These funds provide diversification, consistent payouts and ease of passive management, making them ideal for a stable, hands-off portfolio. When chosen carefully, dividend ETFs can become the cornerstone of a traditional investment plan, providing income and growth for years to come.

So let’s look at the five top dividend ETFs for the traditional long-term investor who wants to grow their investment over time.

Vanguard S&P 500 ETF Near 52-Week High With Return Over 300% Since 2011

Vanguard S&P 500 ETF New York Stock Exchange: SBI is a flagship ETF that tracks the S&P 500 index and offers exposure to the stocks of the 500 largest US companies.

With a low expense ratio of 0.03% and a dividend yield of 1.1%, VOO provides a cost-effective way to invest in the overall performance of the U.S. stock market.

VOO shares are up more than 24% year to date, trading near their 52-week high and have returned more than 300% since launching in 2011, excluding dividends.

With $568 billion in assets under management and a 96.4% market share in the U.S., VOO is a foundation for stability and long-term growth.

Select Sector SPDR Utility Fund: Defensive and Stable Income

Select Utilities Sector SPDR Fund New York Stock Exchange: XLU The focus is on the utilities sector, which is known for its protective characteristics and stable income.

This ETF combines electric, utility and gas companies, providing a current dividend yield of 2.56%.

Year to date, XLU has gained more than 27%, thanks in part to increased energy demand from AI and data centers, which has sparked renewed interest in power generation and nuclear power.

With a low expense ratio of 0.09%, a solid dividend yield and upward momentum, XLU remains a solid choice for conservative investors looking for stable income and growth in a thriving sector.

SPDR S&P Dividend ETF: Focuses on Dividend Growth Leaders

SPDR S&P Dividend ETF New York Stock Exchange: SDY is designed for income-focused investors by tracking companies with a history of increasing dividends for at least 20 consecutive years.

His diverse portfolio of 133 holdings includes leading companies such as Chevron, Realty Income and Kenvue.

The ETF boasts a dividend yield of 2.29% and is up nearly 12% year to date.

With a 95.5% U.S. presence and a balanced sector distribution across industries such as industrials, utilities and financials, SDY offers a combination of stability and consistent earnings growth.

JPMorgan Equity Premium Income ETF offers stable income with lower market volatility

JPMorgan Equity Premium Income ETF New York Stock Exchange: NORMAL stands out for its high yield, which currently stands at 10.7%, making it a favorite among investors.

The fund uses a covered call option strategy, writing low-volatility equity options targeting large-cap value stocks to generate premium income while reducing overall portfolio risk.

JEPI has achieved a yield of 8% since the beginning of the year, which, taking into account monthly dividends, reaches twenty-five percent.

With an expense ratio of 0.35%, JEPI appeals to investors seeking a stable income stream with less exposure to market volatility.

Schwab US Dividend Equity ETF combines income and growth for long-term investors

Schwab US Dividend Stock ETF New York Stock Exchange: SCHD is a leader in dividend growth investing, delivering impressive returns by tracking the Dow Jones US Dividend 100 Index.

This ETF focuses on companies that have at least ten consecutive years of continuous dividend payments and strong financial performance.

Since its inception in 2011, SCHD has averaged an annual return of 13.4%, beating the S&P 500’s 11% over the same period.

SCHD’s disciplined investment strategy combines income and capital growth, making it a top choice for conservative long-term investors.

Bottom line

Dividend ETFs such as VOO, XLU, SDY, JEPI and SCHD offer stability, stable income and long-term growth potential, making them ideal for conservative investors. Whether you prioritize overall market exposure, industry plays, or high-yield strategies, these ETFs provide an excellent foundation for a buy-and-hold portfolio that can stand the test of time.

Before you consider the Schwab US Dividend Equity ETF, you should hear this.

MarketBeat tracks Wall Street’s top-rated and best-performing analysts daily and the stocks they recommend to their clients. MarketBeat identified five stocks that top analysts are quietly whispering to their clients to buy now, before the broader market catches on… and the Schwab US Dividend Equity ETF wasn’t on the list.

While the Schwab US Dividend Equity ETF currently has a Hold rating among analysts, the top-rated analysts think these five stocks are Outperform Buys.

View five stocks here

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