Markets.com Logo
euEnglish
LoginSign Up

How to start investing in dividend ETFs: 7 Dividend ETFs to Watch

Dec 25, 2024
5 min read
Table of Contents
  • 1. 1. Vanguard Dividend Appreciation ETF (VIG)
  • 2. 2. iShares Select Dividend ETF (DVY)
  • 3. 3. Schwab U.S. Dividend Equity ETF (SCHD)
  • 4. 4. SPDR S&P Dividend ETF (SDY)
  • 5. 5. ProShares S&P 500 Dividend Aristocrats (NOBL)
  • 6. 6. iShares Core High Dividend ETF (HDV)
  • 7. 7. Global X SuperDividend ETF (SDIV)

etf-03-width-1200-format-jpeg.jpg

How to start investing in dividend ETFs, investing in dividend ETFs can be a way to diversify your portfolio, here's how to get started, along with seven notable dividend ETFs to watch.

It’s important to define your financial goals and assess your risk tolerance. Start by opening an investment account with a reliable brokerage platform that offers access to a wide range of ETFs. Once your account is set up, research active ETFs based on factors like the yield, expense ratio, and the overall performance of the fund. Diversification is key, so consider investing in multiple ETFs that align with your investing strategy, whether it's focused on growth, income, or stability.
 


1. Vanguard Dividend Appreciation ETF (VIG)


This ETF prioritizes companies with a proven track record of consistently increasing dividends over time, focusing on high-quality businesses with strong fundamentals. VIG’s strategy is ideal for growth-oriented income investors who seek reliable dividend growth alongside solid capital appreciation.

By targeting firms with competitive advantages and robust financial health, it offers long-term potential and enhanced stability, making it a compelling choice for those building a sustainable income-focused portfolio. VIG also diversifies across sectors, reducing risk while maintaining steady growth opportunities, which further underscores its appeal as a dependable option in dividend-focused investing.
 


2. iShares Select Dividend ETF (DVY)


DVY focuses on established companies known for their high dividend yields, appealing directly to investors seeking steady income generation. This ETF emphasizes financial stability and consistent performance, targeting firms with a history of sustainable dividends and robust fundamentals. With its strategy of investing across various sectors,

DVY minimizes concentration risk while maintaining reliable returns. It is particularly attractive to risk-averse investors, as it combines income potential with relatively low volatility, offering a balanced approach to portfolio management. For those aiming to build a dependable, income-focused investment strategy, DVY stands out as a practical and secure diversification tool.
 


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


Well-regarded for its low expense ratio and reliable dividend performance, SCHD is a top choice for income-seeking investors. This ETF focuses on high-quality U.S. companies with strong and sustainable dividend payouts, prioritizing firms with solid financial health and track records of consistent growth. Not only does SCHD provide steady income generation, but it also incorporates tax efficiency into its strategy, making it particularly appealing for long-term investors.

By targeting a diversified pool of dividend-paying stocks, SCHD balances potential returns with reduced risk, positioning itself as an ideal option for those aiming to optimize their dividend-focused portfolio.
 


4. SPDR S&P Dividend ETF (SDY)


Tracking firms with a strong history of dividend sustainability, SDY appeals to investors who prioritize consistency and a balanced approach to income investing. This ETF focuses on companies within the S&P High Yield Dividend Aristocrats Index, which includes businesses that have consistently increased dividends for at least 20 consecutive years.

By emphasizing stability and reliability, SDY aligns with risk-conscious investors seeking predictable income streams while minimizing exposure to market volatility. Its diversified portfolio spans various sectors, enhancing resilience and long-term growth potential. For investors looking to build a secure, income-focused strategy, SDY provides an attractive blend of predictability and performance.
 


5. ProShares S&P 500 Dividend Aristocrats (NOBL)


NOBL exclusively tracks S&P 500 companies that have demonstrated exceptional commitment to shareholders by increasing their dividends for at least 25 consecutive years. This ETF emphasizes a disciplined approach to quality, ensuring its holdings represent stability, reliability, and enduring financial strength.

With a focus on consistent and predictable dividend growth, NOBL appeals to investors looking for a dependable income stream paired with the potential for capital appreciation. Its diverse mix of well-established companies across multiple sectors minimizes risk while fostering resilience in varying market conditions. For those seeking steady returns through proven performance, NOBL stands out as an excellent choice.
 


6. iShares Core High Dividend ETF (HDV)


VYM provides investors with exposure to high-quality, dividend-paying companies, focusing on those with strong fundamentals and attractive yields. This ETF emphasizes defensive sectors such as healthcare, utilities, and consumer staples, which are known for their stability and consistent performance, even in turbulent markets.

By prioritizing these sectors, VYM offers a reliable source of steady income, appealing to income-focused investors seeking long-term financial security. Its broad diversification reduces risk while maintaining exposure to companies with a proven track record of generating shareholder value. For those aiming to balance growth and income, VYM is a dynamic option aligned with enduring market trends.
 


7. Global X SuperDividend ETF (SDIV)


For those seeking global exposure, SDIV delivers unparalleled access to high-yield dividend stocks across international markets, creating diverse income opportunities. This ETF invests in a wide range of industries and geographies, ensuring a steady flow of dividends from both developed and emerging markets.

By focusing on global sectors such as real estate, utilities, and financial services, SDIV provides a powerful tool for investors to enhance portfolio income while spreading risk. Its unique strategy of targeting high-yielding stocks worldwide enables consistent payouts, making it an appealing option for income-focused investors looking to diversify beyond domestic borders.

By choosing from these reputable ETFs, you can build a portfolio tailored to your financial goals. Remember to consistently research and monitor your investments to ensure they align with your evolving needs and market conditions.
 



When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss. 

Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.
 


Risk Warning: this article represents only the author’s views and is for reference only. It does not constitute investment advice or financial guidance, nor does it represent the stance of the Markets.com platform.When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice. Trading cryptocurrency CFDs and spread bets is restricted for all UK retail clients. 

Frances Wang
Written by
Frances Wang
SHARE

Markets

  • Palladium - Cash

    chartpng

    --

    -1.17%
  • EUR/USD

    chartpng

    --

    -0.12%
  • Cotton

    chartpng

    --

    -0.74%
  • AUD/USD

    chartpng

    --

    -0.49%
  • Santander

    chartpng

    --

    0.16%
  • Apple.svg

    Apple

    chartpng

    --

    -0.02%
  • easyJet

    chartpng

    --

    -0.54%
  • VIXX

    chartpng

    --

    -0.28%
  • Silver

    chartpng

    --

    -2.40%
Most Popular ArticlesView all
  • Mar 10, 2025

    Trump stock price: Shares of Trump Media fell more than 11%

Table of Contents
  • 1. 1. Vanguard Dividend Appreciation ETF (VIG)
  • 2. 2. iShares Select Dividend ETF (DVY)
  • 3. 3. Schwab U.S. Dividend Equity ETF (SCHD)
  • 4. 4. SPDR S&P Dividend ETF (SDY)
  • 5. 5. ProShares S&P 500 Dividend Aristocrats (NOBL)
  • 6. 6. iShares Core High Dividend ETF (HDV)
  • 7. 7. Global X SuperDividend ETF (SDIV)

Related Articles

Crypto CFD Trading for Beginners: Why Crypto CFDs May Suit Your Portfolio?

Crypto CFD Trading for Beginners: Cryptocurrency trading has gained immense popularity over the past few years, and with it, various trading methods have emerged.

Ghko B|3 days ago

PayPal Stock Analysis: What Drives PYPL Stock Price?

PayPal Stock Analysis: PayPal Holdings Inc. (NASDAQ: PYPL) has been a pivotal player in the digital payments landscape since its inception.

Frances Wang|3 days ago

Crypto Market Today: ADA/USD, XRP/USD, LTC/USD, TRX/USD

Crypto Market Today: the cryptocurrency market continues to evolve rapidly, attracting attention from various sectors due to its innovative technology and potential for transformation in finance.

Frances Wang|3 days ago
Markets.com Logo
google playapp storeweb tradertradingView

Contact Us

support@markets.com+12845680155

Markets

  • Forex
  • Shares
  • Commodities
  • Indices
  • Crypto
  • ETFs
  • Bonds

Trading

  • Trading Tools
  • Platform
  • Web Platform
  • App
  • TradingView
  • MT4
  • MT5
  • CFD Trading
  • CFD Asset List
  • Trading Info
  • Trading Conditions
  • Trading Hours
  • Trading Calculators
  • Economic Calendar

Learn

  • News
  • Trading Basics
  • Glossary
  • Webinars
  • Traders' Clinic
  • Education Centre

About

  • Why markets.com
  • Global Offering
  • Our Group
  • Careers
  • FAQs
  • Legal Pack
  • Safety Online
  • Complaints
  • Contact Support
  • Help Centre
  • Sitemap
  • Cookie Disclosure
  • Awards and Media

Promo

  • Gold Festival
  • Crypto Trading
  • marketsClub
  • Welcome Bonus
  • Loyal Bonus
  • Referral Bonus

Partnership

  • Affiliation
  • IB

Follow us on

  • Facebook
  • Instagram
  • Twitter
  • Youtube
  • Linkedin
  • Threads
  • Tiktok

Listed on

  • 2023 Best Trading Platform Middle East - International Business Magazine
  • 2023 Best Trading Conditions Broker - Forexing.com
  • 2023 Most Trusted Forex Broker - Forexing.com
  • 2023 Most Transparent Broker - AllForexBonus.com
  • 2024 Best Broker for Beginners, United Kingdom - Global Brands Magazine
  • 2024 Best MT4 & MT5 Trading Platform Europe - Brands Review Magazine
  • 2024 Top Research and Education Resources Asia - Global Business and Finance Magazine
  • 2024 Leading CFD Broker Africa - Brands Review Magazine
  • 2024 Best Broker For Beginners LATAM - Global Business and Finance Magazine
  • 2024 Best Mobile Trading App MENA - Brands Review Magazine
  • 2024 Best Outstanding Value Brokerage MENA - Global Business and Finance Magazine
  • 2024 Best Broker for Customer Service MENA - Global Business and Finance Magazine
LegalLegal PackCookie DisclosureSafety Online

Payment
Methods

mastercardvisanetellerskrillwire transferzotapay
The www.markets.com/za/ site is operated by Markets South Africa (Pty) Ltd which is a regulated by the FSCA under license no. 46860 and licensed to operate as an Over The Counter Derivatives Provider (ODP) in terms of the Financial Markets Act no.19 of 2012. Markets South Africa (Pty) Ltd is located at BOUNDARY PLACE 18 RIVONIA ROAD, ILLOVO SANDTON, JOHANNESBURG, GAUTENG, 2196, South Africa. 

High Risk Investment Warning: Trading Foreign Exchange (Forex) and Contracts For Difference (CFDs) is highly speculative, carries a high level of risk and is not appropriate for every investor. You may sustain a loss of some or all of your invested capital, therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading on margin. Please read the full  Risk Disclosure Statement which gives you a more detailed explanation of the risks involved.

For privacy and data protection related complaints please contact us at privacy@markets.com. Please read our PRIVACY POLICY STATEMENT for more information on handling of personal data.

Markets.com operates through the following subsidiaries:

Safecap Investments Limited, which is regulated by the Cyprus Securities and Exchange Commission (“CySEC”) under license no. 092/08. Safecap is incorporated in the Republic of Cyprus under company number ΗΕ186196.

Markets International Limited is registered  in the Saint Vincent and The Grenadines (“SVG”) under the revised Laws of Saint Vincent and The Grenadines 2009, with registration number  27030 BC 2023.

Close
Close

set cookie

set cookie

We use cookies to do things like offer live chat support and show you content we think you’ll be interested in. If you’re happy with the use of cookies by markets.com, click accept.