The Only 3 Dividend ETFs Investors Need to Own in 2026 for Long-Term Passive Income

51 minutes ago 4

Chris MacDonald

Mon, December 8, 2025 astatine 8:56 AM CST 5 min read

Concepts of involvement rates and dividends. Profits from returns from investments. Interest from regular savings. Compensation funds. Investments. Stock market. Returns from deposit insurance.money

Investors surely don't person immoderate shortage of dividend speech traded funds (ETFs) to take from. According to an absorbing root I found, determination are presently much than 15,000 ETFs successful existence, with the bulk of these paying immoderate benignant of dividend output (small oregon large).

The Schwab U.S. Dividend Equity ETF (SCHD) yields 3.8% and tracks the Dow Jones U.S. Dividend 100 Index of high-quality large-cap stocks.
SCHD provides important vulnerability to user staples, vigor and healthcare sectors with an mean price-earnings ratio betwixt 15 and 16 times.
The Fidelity High Dividend ETF (FDVV) has delivered implicit 13% annualized returns since its 2016 inception portion yielding 3.1%.
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That's an incredibly ample illustration size to enactment with. Accordingly, galore investors looking for top-tier dividend ETFs to parkland immoderate superior for the semipermanent successful volition privation to bash their probe connected which of the thousands of options retired determination acceptable one's idiosyncratic investing profile, hazard tolerance levels, and semipermanent goals.

I've picked 3 apical dividend ETFs successful this portion that I either own, oregon would urge to friends. This isn't fiscal advice, and readers should bash their homework connected each of these stocks earlier buying. But here's wherefore I deliberation these apical dividend ETFs are astatine slightest worthy a look close now.

The Schwab U.S. Dividend Equity ETF (SCHD) happens to beryllium 1 of my largest ETF holdings, and this is 1 peculiar acquisition I'm intending connected holding for decades.

There are a fig of reasons for this view. First, SCHD provides a precise juicy 3.8% dividend yield, fueled by immoderate of the apical dividend stocks successful the market. Tracking the Dow Jones U.S. Dividend 100 Index, this ETF focuses connected lone the highest-quality large-cap dividend stocks successful the market. And fixed the information that the immense bulk of top-tier tech stocks don't transportation dividends (or if they bash person yields, they are minuscule), this ETF allows investors who whitethorn beryllium different overly exposed to tech stocks to diversify their portfolios further.

With important weightings to the user staples, vigor and heath attraction sectors, I deliberation SCHD tin supply much-needed portfolio diversification for those seeking greater output and worth successful their wide holdings. And with an mean price-earnings ratio betwixt 15 and 16-times, there's a batch to similar astir the defensiveness this ETF tin supply implicit agelong marketplace cycles.