Despite grumblings from President Donald Trump, the U.S. Federal Reserve has kept interest rates high to fight the persistent threat…
Despite grumblings from President Donald Trump, the U.S. Federal Reserve has kept interest rates high to fight the persistent threat of inflation in 2025. And with the current yield for 10-year U.S. Treasurys at around 4.5%, there are plenty of options for income investors looking for yield in the bond market right now.
Unfortunately, that raises the stakes for dividend stocks as a result. When low-risk investors can get that kind of return in rock-solid Treasurys, why would folks risk the volatility of the stock market for half that amount of income?
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As a technicality, however, “dividends” are not paid by bonds. Rather, investors get interest (colloquially known as coupon payments) that are a percentage of the face value of these assets. If you’re investing in exchange-traded funds (ETFs) it may be hard to tell the difference, but it’s an important distinction because this list will look solely at dividend ETFs that generate yield — and not from bonds, options or other strategies — but from dividend-paying stocks:
| Dividend ETFs | Expense Ratio | Assets | 30-day SEC yield* |
| Schwab US Dividend Equity ETF (ticker: SCHD) | 0.06% | $69 billion | 3.9% |
| iShares MSCI EAFE Value ETF (EFV) | 0.33% | $25 billion | 3.5% |
| iShares Select Dividend ETF (DVY) | 0.38% | $19 billion | 4.1% |
| Schwab Fundamental International Equity ETF (FNDF) | 0.25% | $16 billion | 3.1% |
| iShares Core High Dividend ETF (HDV) | 0.08% | $11 billion | 3.4% |
| Avantis International Small Cap Value ETF (AVDV) | 0.36% | $9 billion | 3.3% |
| JPMorgan International Research Enhanced Equity ETF (JIRE) | 0.24% | $7 billion | 3.1% |
*As of June 9 close.
Schwab US Dividend Equity ETF (SCHD)
Assets: $69 billion Expense ratio: 0.06% Dividend yield: 3.9%
The largest and most popular dividend ETF that offers a yield of 3% or better, this Schwab fund is focused on a selective list of about 100 blue-chip stocks. Top holdings at present include telecom giant Verizon Communications Inc. (VZ), soft drink leader Coca-Cola Co. (KO) and tobacco company Altria Group Inc. (MO). There are admittedly larger funds asset-wise with “dividend” in their name, including some with $100 billion in assets. But they can include mega-cap tech stocks that only pay a nominal dividend rather than these generous corporations. In fact, the technology sector only makes up around 8% of the portfolio, while leading sectors include energy at 21% and consumer staples at 19%.
iShares MSCI EAFE Value ETF (EFV)
Assets: $25 billion Expense ratio: 0.33% Dividend yield: 3.5%
Looking beyond the U.S., this iShares fund is focused on Europe, Australasia and the Far East (EAFE) to provide an international flavor for dividend investors. The fund has about 430 total components right now, and boasts an average market cap of more than $50 billion, so you’re not exactly chasing risky emerging-market small caps. In fact, the lineup of multinational stocks should be very familiar to U.S. investors, including top holdings such as Swiss pharma leader Roche Holding AG (OTC: RHHBY), leading UK bank HSBC Holdings PLC (HSBC) and energy giant Shell PLC (SHEL). While the word “dividend” doesn’t appear in the name, the focus on value stocks naturally leads this fund to a high yield, as well as the stability that income investors prefer in their portfolio.
iShares Select Dividend ETF (DVY)
Assets: $19 billion Expense ratio: 0.38% Dividend yield: 4.1%
Another focused large-cap dividend ETF, DVY is similar to the Schwab fund that started the list with a selective portfolio of about 100 stocks. The methodology is a bit different, however, leading to a higher yield — and also a higher cost structure. One such example is that DVY demands a five-year history of dividend growth that proves a track record of success. Top stocks right now include Ford Motor Co. (F), which paid 78 cents per share in calendar year 2024 compared with just 56 cents per share five years beforehand in 2019. If you’re a long-term income investor, that kind of consistent dividend growth is proof you will keep getting paid as you buy and hold.
Schwab Fundamental International Equity ETF (FNDF)
Assets: $16 billion Expense ratio: 0.25% Dividend yield: 3.1% Another stock that isn’t explicitly a dividend fund, this Schwab ETF is focused on international stocks that feature strong fundamentals. These include metrics such as sales growth and cash flow, and stock buybacks as well as dividend history. The overall portfolio is pretty extensive with about 950 individual stocks, led by UK oil giant Shell and Korea electronics icon Samsung Electronics Co. Ltd. (OTC: SSNLF). But despite the focus on a lot of stocks and a wide range of fundamental criteria, the result is a high-yield dividend ETF. An impressive yield, coupled with a layer of geographic diversification and the potential for growth via strong fundamentals, makes this one of the best dividend ETFs to buy now.
iShares Core High Dividend ETF (HDV)
Assets: $11 billion Expense ratio: 0.08% Dividend yield: 3.4%
The most selective dividend ETF so far, this iShares fund is focused on a portfolio of less than 80 total stocks in pursuit of high yield. Top stocks include health care leader Johnson & Johnson (JNJ), Big Oil giant ExxonMobil Corp. (XOM) and insurance giant Progressive Corp. (PGR), among others. There’s not as much diversification as some other funds given this short list of holdings, and about half of all assets are in the top 10 positions alone, so investors should be aware of the risks. That said, it’s hard to supercharge the yield of an investment strategy by casting a wide net — and a focus on a smaller list of high-yield stocks may be attractive to those who prioritize payouts above other factors.
Avantis International Small Cap Value ETF (AVDV)
Assets: $9 billion Expense ratio: 0.36% Dividend yield: 3.3%
Though not as large of an asset manager as iShares or Schwab, Avantis is nevertheless a leader when it comes to the best dividend ETFs to buy now. That’s evidenced by this very tactical fund that is focused on international stocks with a small size that exhibit attractive value metrics. And believe it or not, more than 1,400 total stocks make the cut thanks to the sheer breadth of options out there in the world. This big portfolio of holdings helps offset some of the risks that come with a focused strategy like that. One thing to keep in mind though is that the strategy veers into sectors that typically aren’t leaders in the most popular ETFs, with industrials representing a huge 19% of the portfolio followed by materials at 17%. By way of comparison, the S&P 500 is only 8% allocated towards industrials and 2% weighted towards materials.
JPMorgan International Research Enhanced Equity ETF (JIRE)
Assets: $7 billion Expense ratio: 0.24% Dividend yield: 3.1% Yet another tactical fund for dividend ETF investors who don’t mind global exposure, JIRE is led by familiar multinationals like Swiss consumer giant Nestle SA (OTC: NSRGY) and Dutch chipmaker ASML Holding NV (ASML). The “ex-U.S.” approach — that is, a strategy open to every area outside of the United States — along with an actively managed approach that relies on the world-class research team of JPMorgan, makes this a very unique dividend ETF. It also makes it attractive to investors who already hold the usual suspects in an S&P 500 fund or similar vehicle, as JIRE easily slots in to add a layer of diversification and yield without duplicating holdings.
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Update 06/10/25: This story was previously published at an earlier date and has been updated with new information.