Top S&P 500 Dividend ETFs for 2025
The S&P 500 has been on a remarkable upward trajectory, boasting a 24% gain in 2023 and an additional 23% surge in 2024. Analysts are buzzing with optimism, forecasting continued growth in 2025, fueled by robust corporate profits and the transformative potential of artificial intelligence (AI). Standout performers like Arista Networks have seen their stock values skyrocket by 66% over the past year, exemplifying the market’s vibrant momentum.
For investors eager to ride this wave of growth while securing steady income, dividend-focused ETFs offer an enticing opportunity. Here are some top contenders, each with impressive past performances:
1. Vanguard High Dividend Yield ETF (VYM):
This ETF offers low-cost, diversified exposure to large-cap U.S. stocks with high dividend yields. As of February 15, 2025, VYM is trading at $133.77. In 2024, VYM delivered a total return of 14.46%, outpacing its benchmark, the FTSE High Dividend Yield Index, which returned 14.04% during the same period.
2. iShares Select Dividend ETF (DVY):
Focusing on U.S. companies with a history of consistent dividend payments, DVY provides exposure to high dividend-paying equities. As of February 15, 2025, DVY is priced at $135.71. The ETF has amassed assets under management (AUM) of $18.6 billion and maintains an average daily volume of around 427,000 shares.
3. SPDR S&P Dividend ETF (SDY):
Tracking the S&P High Yield Dividend Aristocrats Index, SDY includes companies that have consistently increased their dividends for at least 20 years. As of February 15, 2025, SDY trades at $134.26. In 2024, SDY experienced a modest decline of 2.8%, reflecting market volatility.
4. Schwab U.S. Dividend Equity ETF (SCHD):
Offering exposure to high-dividend-paying U.S. companies with a focus on financial health and stability, SCHD is a solid choice for income-seeking investors. As of February 15, 2025, SCHD is trading at $27.79. The ETF provides an attractive yield of approximately 3%, coupled with a minimal expense ratio of 0.06%.
5. ProShares S&P 500 Dividend Aristocrats ETF (NOBL):
This ETF comprises companies that have increased their dividends for at least 25 consecutive years, embodying stability and reliability. As of February 15, 2025, NOBL is priced at $101.35. In 2024, NOBL achieved a total return of 6.72%, showcasing its resilience in various market conditions.
These ETFs not only offer the potential for capital appreciation but also provide a reliable stream of income, making them compelling options for investors aiming to capitalize on the S&P 500’s dynamic performance.
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