7 High-Dividend ETFs for March 2024 and How to Invest in Them - NerdWallet (2024)

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High-dividend ETFs may generate income

Dividend-paying ETFs can be a great tool for those looking to increase cash flow and diversify their investments. They offer a simple solution to getting exposure to a specific investing niche — in this case, stocks that pay a regular dividend.

You can use those dividends to pad your income as many retirees do. You can also reinvest those dividends back into the fund, to better take advantage of compound interest, and grow your investment portfolio. Whatever you choose, dividend-paying ETFs make it easy to add a large variety of investments to your portfolio all at once.

» Wondering about the taxes? Learn more about dividend tax rates.

7 high-dividend ETFs

Below is a list of five large-cap U.S. dividend ETFs, ordered by annual dividend yield. High dividend ETFs may come with higher risk. Always read the fine print and investigate dividends that seem too good to be true.

» Need a brokerage account? Check out the best online brokerages for dividend investing



Annual dividend yield


SPDR Portfolio S&P 500 High Dividend ETF



First Trust Morningstar Dividend Leaders Index Fund



ALPS Sector Dividend Dogs ETF



ALPS O'Shares Europe Quality Dividend ETF



Invesco S&P Ultra Dividend Revenue ETF



Franklin U.S. Low Volatility High Dividend Index ETF



iShares Select Dividend ETF


Data current as of March 18, 2024, and is for informational purposes only. Inverse, leveraged, actively managed and hedged ETFs are excluded, as are ETFs with expense ratios over 0.5%.

Can you live off ETF dividends?

While it is possible to live off ETF dividends, you'll need to do some careful planning to make it happen. You'll need to balance how much income your investments bring in, and how much you spend. You can use the 4% rule to help you figure out how much you can withdraw from your retirement stash, meaning you should aim to withdraw around 4% from your savings every year.


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If you want to live off ETF dividends you'll need to consider the money you may have from Social Security benefits, pension benefits, 401(k)s, IRAs, and any other sources of income. Then you can start to estimate how much you'll need to fill in the gaps with ETF dividends. If you're heading into retirement and want to see how ETF dividends can supplement your lifestyle, it may be a good idea to speak with a financial advisor.

» Interested in early retirement? Learn about the FIRE movement.

How to invest in dividend ETFs

A dividend ETF typically includes dozens, if not hundreds, of dividend stocks. That instantly provides you with diversification, which means greater safety for your payout. Even if a few of the fund’s stocks cut their dividends, the effect will be minimal on the fund’s overall dividend. A safe payout should be your top consideration in buying any dividend investment.

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. (No broker? Here's how to open a brokerage account.)

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.

  • Assets under management (AUM). This refers to the total market value of the assets a fund manages. The AUM gives an indication of the size of the fund. Funds with a low AUM promising high dividends may be risky.

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.

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7 High-Dividend ETFs for March 2024 and How to Invest in Them - NerdWallet (4)

Learn more about sector ETFs:

  • How to choose the right biotech ETFs for you

  • Why gold ETFs are having a record year

  • What Is a Dividend and How Do They Work?

  • Invest abroad? Check out China ETFs

Data is intended for informational purposes only.

Neither the author nor editor held positions in the aforementioned investments at the time of publication.

7 High-Dividend ETFs for March 2024 and How to Invest in Them - NerdWallet (2024)


What are the best ETFs to invest in 2024? ›

Best ETFs as of April 2024
TickerFund name5-year return
SOXXiShares Semiconductor ETF30.70%
XLKTechnology Select Sector SPDR Fund24.57%
IYWiShares U.S. Technology ETF24.09%
FTECFidelity MSCI Information Technology Index ETF22.79%
1 more row
Mar 29, 2024

How do I invest in high dividend ETFs? ›

How to invest in dividend ETFs
  1. Find a broadly diversified dividend ETF. You can typically find dividend ETFs by searching for them on your broker's website. ...
  2. Analyze the ETF. Make sure the ETF is invested in stocks (also called equities), not bonds. ...
  3. Buy the ETF.
Mar 29, 2024

What is the top performing high dividend ETF? ›

7 of the Best High Dividend ETFs
ETFAssets Under ManagementDividend Yield
VanEck BDC Income ETF (ticker: BIZD)$919 million10.8%
PGIM Floating Rate Income ETF (PFRL)$49.5 million9.7%
JP Morgan Nasdaq Equity Premium Income ETF (JEPQ)$9.6 billion9.7%
iShares Select Dividend ETF (DVYE)$670 million9.3%
3 more rows
Mar 1, 2024

What stocks pay more than 6% dividend? ›

20 high-dividend stocks
CompanyDividend Yield
Flushing Financial Corp.8.00%
Kearny Financial Corp.7.81%
Chord Energy Corp7.66%
Insteel Industries, Inc.7.62%
17 more rows
7 days ago

What are the top 5 ETFs to buy? ›

7 Best ETFs to Buy Now
ETFAssets Under ManagementExpense Ratio
Vanguard Information Technology ETF (VGT)$70 billion0.10%
VanEck Semiconductor ETF (SMH)$16.3 billion0.35%
Invesco S&P MidCap Momentum ETF (XMMO)$1.6 billion0.34%
SPDR S&P Homebuilders ETF (XHB)$1.8 billion0.35%
3 more rows
Apr 3, 2024

Which ETF has the best 10 year return? ›

Best ETFs 10 Years
SymbolETF Name10y Chg 4-2-24
PSIInvesco Semiconductors ETF786%
METARoundhill Ball Metaverse ETF717%
XSDSPDR S&P Semiconductor ETF617%
XLKSPDR Technology Sector ETF558%
17 more rows

What ETF has 12% yield? ›

Top 100 Highest Dividend Yield ETFs
SymbolNameDividend Yield
SOXSDirexion Daily Semiconductor Bear 3x Shares12.14%
RYLDGlobal X Russell 2000 Covered Call ETF12.14%
XRMIGlobal X S&P 500 Risk Managed Income ETF12.11%
QRMIGlobal X NASDAQ 100 Risk Managed Income ETF12.10%
93 more rows

How many different ETFs should I own? ›

Experts agree that for most personal investors, a portfolio comprising 5 to 10 ETFs is perfect in terms of diversification.

Can you live off ETF dividends? ›

Over time, the cash flow generated by those dividend payments can supplement your Social Security and pension income. Perhaps, it can even provide all the money you need to maintain your preretirement lifestyle. It is possible to live off dividends if you do a little planning.

What are the cons of high dividend ETF? ›

Cons. No guarantee of future dividends. Stock price declines may offset yield. Dividends are taxed in the year they are distributed to shareholders.

Is it wise to invest in VOO? ›

Vanguard S&P 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VOO is a great option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market.

Which Vanguard ETFs pay the highest dividends? ›

ETFs: ETF Database Realtime Ratings
Symbol SymbolETF Name ETF NameAnnual Dividend Yield % Annual Dividend Yield %
VIGVanguard Dividend Appreciation ETF1.82%
VYMVanguard High Dividend Yield Index ETF2.90%
VYMIVanguard International High Dividend Yield ETF4.98%
VIGIVanguard International Dividend Appreciation ETF2.09%
2 more rows

What are the 3 dividend stocks to buy and hold forever? ›

7 Dividend Kings to Buy and Hold Forever
StockDividend yieldDividend growth streak
Procter & Gamble Co. (PG)2.4%68 years
3M Co. (MMM)6.5%65 years
Coca-Cola Co. (KO)3.3%61 years
Johnson & Johnson (JNJ)3.2%61 years
3 more rows
5 days ago

Which company will give dividend in 2024? ›

Dividends Declared
HCL TechInterim20-03-2024
Sanofi IndiaFinal24-02-2024
ABB IndiaFinal20-02-2024
42 more rows

Is Coca-Cola a dividend stock? ›

In many ways for many investors, Coca-Cola (NYSE: KO) is a model dividend stock. The company is a Dividend King, meaning it has raised its shareholder payout at least once annually for a minimum of 50 years. Its current streak stands at a hard-to-conceive 62 straight years.

What is the best ETF to buy right now? ›

Top commodity ETFs
Fund (ticker)YTD performance5-year performance
SPDR Gold Shares (GLD)7.6 percent11.0 percent
iShares Silver Trust (SLV)4.5 percent9.9 percent
United States Oil Fund LP (USO)18.1 percent-4.7 percent
Invesco DB Agriculture Fund (DBA)19.4 percent9.9 percent

What is the best performing ETF in last 5 years? ›

100 Highest 5 Year ETF Returns
SymbolName5-Year Return
SPXLDirexion Daily S&P 500 Bull 3X Shares21.97%
UPROProShares UltraPro S&P50021.68%
FTECFidelity MSCI Information Technology Index ETF21.67%
IXNiShares Global Tech ETF21.54%
93 more rows

Which ETF is best for long term investment? ›

Best index funds to invest in
  • SPDR S&P 500 ETF Trust.
  • iShares Core S&P 500 ETF.
  • Schwab S&P 500 Index Fund.
  • Shelton NASDAQ-100 Index Direct.
  • Invesco QQQ Trust ETF.
  • Vanguard Russell 2000 ETF.
  • Vanguard Total Stock Market ETF.
  • SPDR Dow Jones Industrial Average ETF Trust.

What are the best ETFs in February 2024? ›

In February 2024, the top-performing stock ETFs included equity technology fund VanEck Crypto & Blockchain Innovators UCITS ETF (DAPP) and iShares Blockchain Technology UCITS ETF (BLKC). The month's worst performers included Sprott Uranium Miners UCITS ETF Accumulating (URNM) and AuAg ESG Gold Mining UCITS ETF (ESGO).

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