Dividend-focused Exchange-Traded Funds (ETFs) are an attractive choice for investors seeking consistent income and portfolio growth. In 2024, several dividend ETFs have stood out, delivering stellar year-to-date (YTD) returns while maintaining reliable dividend payouts. Below, we take a deeper dive into the top six dividend ETFs, exploring their strategies, holdings, and why they are worth considering for dividend investors. We’ll also show how much you could earn in dividends from a $100,000 investment in each fund.
1. TDIV – First Trust NASDAQ Technology Dividend Index Fund
Performance: 25.17% YTD | Expense Ratio: 0.50% | Dividend Yield: 2.18%
Annual Dividend from $100,000 Investment: $2,180
The First Trust NASDAQ Technology Dividend Index Fund (TDIV) offers investors exposure to dividend-paying companies in the technology and telecommunications sectors. These industries are known for their growth potential, but many tech companies traditionally reinvest profits rather than pay dividends. TDIV Stock focuses on a select group of mature, profitable firms that consistently reward shareholders with dividends, giving you the best of both worlds—sector growth and income stability.
Portfolio Highlights: The fund includes giants like Apple, Microsoft, Cisco, and Intel, companies with strong market positions and stable cash flows. These firms are less speculative and have a history of sustaining or growing their dividends, making them attractive for income-focused investors.
Why Choose TDIV Stock: This ETF is perfect for those looking to capitalize on the tech sector’s impressive 2024 performance, which has been driven by advancements in AI, 5G, and cloud computing. While many tech companies focus on reinvestment, TDIV stock ensures you can still benefit from steady dividend payments. For investors seeking growth with moderate risk, this fund is a standout choice.
Investor Takeaway: A $100,000 investment in TDIV stock would generate $2,180 annually in dividends. This ETF is ideal for those wanting exposure to one of the fastest-growing sectors without sacrificing income potential.
TDIV – First Trust NASDAQ Technology Dividend Index Fund Website
2. DGRW – WisdomTree U.S. Quality Dividend Growth Fund
Performance: 17.03% YTD | Expense Ratio: 0.28% | Dividend Yield: 1.55%
Annual Dividend from $100,000 Investment: $1,550
The WisdomTree U.S. Quality Dividend Growth Fund (DGRW) takes a unique approach by focusing on high-quality companies with strong earnings growth potential and sustainable dividends. It uses a sophisticated screening process that prioritizes companies with high return on equity (ROE) and low financial leverage, ensuring only financially sound firms are included.
Portfolio Highlights: DGRW stock invests in household names like Johnson & Johnson, Procter & Gamble, and Microsoft. These companies have long track records of delivering consistent earnings and dividends, making them reliable choices for income investors.
Why Choose DGRW stock: The fund emphasizes dividend growth over high current yields, targeting companies likely to increase their payouts over time. Its low expense ratio of 0.28% ensures more of your money works for you. For dividend growth investors, this ETF offers a balance between income, quality, and capital appreciation.
Investor Takeaway: A $100,000 investment in DGRW stock would yield $1,550 in annual dividends. It’s a solid choice for those seeking a long-term strategy that combines income stability with growth potential.
DGRW – WisdomTree U.S. Quality Dividend Growth Fund Website
3. PFM – Invesco Dividend Achievers ETF
Performance: 16.74% YTD | Expense Ratio: 0.52% | Dividend Yield: 1.57%
Annual Dividend from $100,000 Investment: $1,570
The Invesco Dividend Achievers ETF (PFM) follows the NASDAQ U.S. Broad Dividend Achievers Index, which consists of companies with at least 10 consecutive years of dividend growth. This makes PFM stock a highly reliable option for investors seeking steady income from well-established businesses.
Portfolio Highlights: PFM stock’s holdings include iconic companies like Coca-Cola, Chevron, and McDonald’s. These firms are known for their resilience and consistent cash flows, even during economic downturns, making them ideal for conservative investors.
Why Choose PFM: PFM stock’s focus on dividend growth ensures that the companies in its portfolio are financially healthy and committed to rewarding shareholders. This strategy offers an added layer of stability, especially in uncertain market conditions. It’s a great choice for investors looking to build wealth through reinvested dividends and compounding.
Investor Takeaway: With a $100,000 investment, you could earn $1,570 annually in dividends. PFM stock is a dependable choice for those prioritizing long-term stability and steady income growth.
PFM – Invesco Dividend Achievers ETF Website
4. RDVY – First Trust Rising Dividend Achievers ETF
Performance: 15.65% YTD | Expense Ratio: 0.49% | Dividend Yield: 1.36%
Annual Dividend from $100,000 Investment: $1,360
The First Trust Rising Dividend Achievers ETF (RDVY) is designed to capture companies with strong dividend growth potential. Unlike traditional high-dividend funds, RDVY stock focuses on firms with low payout ratios and robust earnings growth, ensuring dividends are well-supported by profits.
Portfolio Highlights: RDVY stock includes companies like Goldman Sachs, Broadcom, and United Rentals, offering exposure to financials, technology, and industrials. These sectors provide a mix of growth and stability.
Why Choose RDVY: This ETF is particularly attractive for growth-oriented investors who prefer dividend growth over high current yields. By targeting companies that reinvest profits into expansion while still rewarding shareholders, RDVY stock offers the potential for capital appreciation and rising income.
Investor Takeaway: A $100,000 investment would generate $1,360 annually in dividends. RDVY stock is ideal for younger investors or those with a long-term horizon looking to build wealth through a mix of growth and dividends.
RDVY – First Trust Rising Dividend Achievers ETF Website
5. YLDE – ClearBridge Dividend Strategy ESG ETF
Performance: 15.52% YTD | Expense Ratio: 0.47% | Dividend Yield: 1.67%
Annual Dividend from $100,000 Investment: $1,670
The ClearBridge Dividend Strategy ESG ETF (YLDE) combines traditional dividend investing with a focus on environmental, social, and governance (ESG) principles. It targets companies that align with sustainable practices while offering reliable income.
Learn more about ethical investing with our in depth ESG guide!
Portfolio Highlights: YLDE stock’s holdings include Tesla, Visa, and Alphabet, companies known for both innovation and commitment to ESG values. This blend of ethical investing and income generation makes YLDE stock a standout option for socially conscious investors.
Why Choose YLDE: As ESG investing continues to gain momentum, YLDE stock provides a way to align your portfolio with your values without sacrificing returns. The fund’s 2024 performance highlights its ability to deliver competitive income and growth while maintaining an ethical focus.
Investor Takeaway: A $100,000 investment in YLDE stock would yield $1,670 annually. It’s an excellent choice for investors looking to integrate sustainability into their portfolios.
YLDE – ClearBridge Dividend Strategy ESG ETF Website
6. DVY – iShares Select Dividend ETF
Performance: 14.85% YTD | Expense Ratio: 0.38% | Dividend Yield: 3.44%
Annual Dividend from $100,000 Investment: $3,440
The iShares Select Dividend ETF (DVY) prioritizes high-dividend-yielding U.S. stocks, focusing on sectors like utilities, financials, and consumer goods. Its holdings consist of companies with strong cash flows and long histories of consistent payouts.
Portfolio Highlights: DVY stock includes firms like ExxonMobil, Verizon, and Duke Energy, all of which offer high dividend yields and stable earnings. Its diversified approach minimizes sector-specific risks, making it a reliable income generator.
Why Choose DVY stock: With the highest dividend yield on this list, DVY stock is a top choice for income-focused investors, particularly retirees or those seeking passive income. Its relatively low expense ratio of 0.38% ensures more of your investment is working for you.
Investor Takeaway: A $100,000 investment in DVY stock would generate $3,440 annually in dividends. This ETF is perfect for conservative investors prioritizing income stability and higher cash flow.
DVY – iShares Select Dividend ETF Website
Conclusion
Each of these ETFs offers a unique approach to dividend investing, catering to different investor goals, whether it’s maximizing income, prioritizing growth, or integrating ESG values. Here’s a quick recap of potential annual dividends from a $100,000 investment:
| ETF | Dividend Yield | Annual Dividend |
|---|---|---|
| TDIV | 2.18% | $2,180 |
| DGRW | 1.55% | $1,550 |
| PFM | 1.57% | $1,570 |
| RDVY | 1.36% | $1,360 |
| YLDE | 1.67% | $1,670 |
| DVY | 3.44% | $3,440 |
What’s next for 2025? Check out this article to see our prediction for the 2025 stock market!
Whether you’re a retiree seeking passive income or a long-term investor looking to compound wealth, these ETFs provide diverse options to meet your goals. Be sure to evaluate your financial objectives and consult with a financial advisor before investing.
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