which etf pays dividends

ETFs That Pay Dividends

Exchange-traded funds (ETFs) are a popular investment vehicle that offer investors a diversified portfolio of stocks or bonds. Some ETFs also pay dividends, which can provide investors with an additional source of income.

Here are three ETFs that pay dividends:

1. Schwab U.S. Dividend Equity ETF (SCHD)

• Pays dividends monthly
• Dividend yield: 3.02%
• Expense ratio: 0.06%

SCHD tracks the Dow Jones U.S. Dividend 100 Index, which is composed of 100 of the highest-yielding stocks in the S&P 500 Index. The fund has a long history of paying dividends, and it has increased its dividend every year since its inception in 2011.

2. Vanguard High Dividend Yield ETF (VYM)

• Pays dividends quarterly
• Dividend yield: 3.31%
• Expense ratio: 0.06%

VYM tracks the FTSE High Dividend Yield Index, which is composed of 400 of the highest-yielding stocks in the U.S. market. The fund has a low expense ratio and a long history of dividend growth.

3. SPDR S&P Dividend ETF (SDY)

• Pays dividends quarterly
• Dividend yield: 3.95%
• Expense ratio: 0.25%

SDY tracks the S&P High Yield Dividend Aristocrats Index, which is composed of 100 of the highest-yielding stocks in the S&P 500 Index that have increased their dividends for at least 25 consecutive years. The fund has a strong track record of performance and has outperformed the S&P 500 Index over the long term.

Conclusion

ETFs that pay dividends can provide investors with a diversified portfolio of stocks or bonds, as well as an additional source of income. The ETF