In this post, we will be reviewing the 10 best dividend ETF in the United States (2022). We compared these ETFs based on the dividend yield, performance over a 5 years period and volatility. For each ETF, we provide the funds’ objective and holdings.
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Best Dividend ETF 2022 (Top 10)
| Symbol | Name | Mgmnt Fee | AUM in B |
|---|---|---|---|
| VIG | Dividend Appreciation Vanguard | 0.06% | 66 |
| VYM | High Dividend Yield Vanguard | 0.06% | 45 |
| SCHD | Schwab US Dividend Equity | 0.06% | 34 |
| DGRO | Dividend Growth Ishares Core | 0.08% | 23 |
| DVY | Select Dividend Ishares | 0.38% | 22 |
| SDY | S&P Dividend SPDR | 0.35% | 21 |
| FVD | Value Line Dividend Idx FT | 0.70% | 12 |
| NOBL | S&P 500 Dividend Aristocrats | 0.35% | 10 |
| HDV | High Dividend Ishares Core | 0.08% | 9 |
| RDVY | Rising Dividend Achievers FT | 0.50% | 9 |
Dividend yield comparison
| Symbol | Div Yield |
|---|---|
| VIG | 1.78% |
| VYM | 2.76% |
| SCHD | 2.88% |
| DGRO | 2.04% |
| DVY | 2.91% |
| SDY | 2.59% |
| FVD | 1.81% |
| NOBL | 1.92% |
| HDV | 3.14% |
| RDVY | 1.21% |
HDV offers the highest dividend yield among the top 10 Dividend ETFs selected.
Performance comparison
| Symbol | YTD %Chg | 3Y %Chg | 5Y %Chg |
|---|---|---|---|
| VIG | -6.94% | +42.35% | +77.39% |
| VYM | +0.22% | +28.16% | +46.28% |
| SCHD | -2.64% | +45.18% | +77.49% |
| DGRO | -5.40% | +39.69% | +73.53% |
| DVY | +5.10% | +28.48% | +41.32% |
| SDY | +0.20% | +28.11% | +47.07% |
| FVD | -1.91% | +28.21% | +45.99% |
| NOBL | -2.59% | +39.34% | +70.12% |
| HDV | +7.26% | +14.37% | +30.65% |
| RDVY | -8.30% | +51.68% | +79.95% |
RDVY Rising Dividend Achievers FT and VIG Dividend Appreciation Vanguard are the best Dividend ETFs in terms of long term performance. Both ETFs focus on companies that raise their dividends overtime. This strategy is also generating plenty of growth.
VIG – Dividend Appreciation Vanguard
VIG invests in businesses that have a record of increasing dividends over time. It’s an index ETF tracking S&P U.S. Dividend Growers Index.
This ETF is dominated by large cap stocks.
VIG Holdings
| HOLDINGS | % OF FUNDS |
|---|---|
| Microsoft Corp. (MSFT) | 4.09% |
| UnitedHealth Group Inc. (UNH) | 3.69% |
| Johnson & Johnson (JNJ) | 3.58% |
| JPMorgan Chase & Co. (JPM) | 3.09% |
| Procter & Gamble Co. (PG) | 2.84% |
VYM – High Dividend Yield Vanguard
VYM invests in common stocks of companies that are characterized by high dividend yields. It’s an index ETF tracking the FTSE High Dividend Yield Index.
This ETF invests mainly in Large-cap equities. The emphases is on stocks that are forecasted to have above-average dividend yields.
VYM Holdings
| HOLDINGS | % OF FUNDS |
|---|---|
| Johnson & Johnson (JNJ) | 3.13% |
| JPMorgan Chase & Co. (JPM) | 2.68% |
| Procter & Gamble Co. (PG) | 2.47% |
| Exxon Mobil Corp. (XOM) | 2.35% |
| Chevron Corp. (CVX) | 2.11% |
SCHD – Schwab US Dividend Equity
SCHD is an index ETF tracking the Dow Jones U.S. Dividend 100™ Index. The stocks are selected based on:
- Stock’s quality (strong fondamentals versus peers)
- Sustainability of the dividendes
SCHD holdings
| Symbol | Name | Percent of Assets (%) |
|---|---|---|
| MRK | MERCK & CO INC | 4.26% |
| PEP | PEPSICO INC | 4.23% |
| KO | COCA-COLA | 4.22% |
| AMGN | AMGEN INC | 4.21% |
| PFE | PFIZER INC | 4.19% |
DGRO – Dividend Growth Ishares Core
DGRO invests in U.S. equities with a history of consistently growing dividends. The fund manager aims also to provide a diversified investments accross various sectors. Also, the sustainibility of the dividendes is a key factor in the selection process.
DGRO Holdings
| Ticker | Name | Weight % |
|---|---|---|
| JNJ | JOHNSON & JOHNSON | 2.86 |
| PFE | PFIZER INC | 2.86 |
| MSFT | MICROSOFT CORP | 2.84 |
| AAPL | APPLE INC | 2.81 |
| PG | PROCTER & GAMBLE | 2.62 |
| JPM | JPMORGAN CHASE & CO | 2.56 |
| MRK | MERCK & CO INC | 2.28 |
| KO | COCA-COLA | 2.10 |
| HD | HOME DEPOT INC | 1.95 |
| PEP | PEPSICO INC | 1.90 |
DVY – Select Dividend Ishares
DVY invests in high dividend paying U.S. equities. Most of the portfolio is made of large cap stocks. The investment approach used the following conditions:
- Consistent history of dividends
- At least 5-year records of paying dividends
DVY Holdings
| Ticker | Name | Weight % |
|---|---|---|
| MO | ALTRIA GROUP INC | 2.51 |
| OKE | ONEOK INC | 2.03 |
| VLO | VALERO ENERGY CORP | 1.87 |
| IBM | INTERNATIONAL BUSINESS MACHINES CO | 1.78 |
| PM | PHILIP MORRIS INTERNATIONAL INC | 1.78 |
SDY – S&P Dividend SPDR
SDY invests in companies that have consistently increased their dividend for at least 20 consecutive years. The aim is to provide not only income but also growth. The stocks are weighted within the portfolio by yield.
SDY Holdings
| Name | Weight |
|---|---|
| Exxon Mobil Corporation | 2.82% |
| Chevron Corporation | 2.50% |
| AbbVie Inc. | 2.08% |
| International Business Machines Corporation | 1.96% |
| South Jersey Industries Inc. | 1.93% |
FVD – Value Line Dividend Idx FT
FVD is an index ETF that tracks the Value Line® Dividend Index. Value Line® selects companies with a higher than average dividend yield. There is a mimimum market capitalization of less than $1 billion for any stock selected.
As you can see below, each equity part of this ETF has the same weight (around 0.53%).
FVD Holdings
| Holding | Percent |
| Entergy Corporation | 0.54% |
| Exelon Corporation | 0.54% |
| General Mills, Inc. | 0.54% |
| Archer-Daniels-Midland Company | 0.53% |
| AT&T Inc. | 0.53% |
| Crown Castle International Corp. | 0.53% |
| Kellogg Company | 0.53% |
| Merck & Co., Inc. | 0.53% |
| Public Storage | 0.53% |
| Rogers Communications Inc. (Class B) | 0.53% |
NOBL – S&P 500 Dividend Aristocrats
NOBL invests in the S&P 500® Dividend Aristocrats® Index. The index includes businesses that have raised dividends for at least 25 consecutive years.
NOBL Holdings
| Weight | Ticker | Description |
|---|---|---|
| 2.66% | NUE | NUCOR CORP |
| 2.16% | ADM | ARCHER-DANIELS-MIDLAND CO |
| 2.07% | CVX | CHEVRON CORP |
| 1.90% | CAH | CARDINAL HEALTH INC |
| 1.88% | ABBV | ABBVIE INC |
| 1.85% | XOM | EXXON MOBIL CORP |
| 1.83% | ED | CONSOLIDATED EDISON INC |
| 1.81% | CINF | CINCINNATI FINANCIAL CORP |
HDV – High Dividend Ishares Core
HDV invests in high dividend paying U.S. equities. The stocks part of the portfolio have been screened for financial health.
HDV Holdings
| Ticker | Name | Weight % |
|---|---|---|
| XOM | EXXON MOBIL CORP | 7.77 |
| ABBV | ABBVIE INC | 6.74 |
| JNJ | JOHNSON & JOHNSON | 5.83 |
| CVX | CHEVRON CORP | 5.55 |
| JPM | JPMORGAN CHASE & CO | 5.49 |
| VZ | VERIZON COMMUNICATIONS INC | 5.28 |
| PG | PROCTER & GAMBLE | 4.41 |
| PM | PHILIP MORRIS INTERNATIONAL INC | 4.15 |
RDVY – Rising Dividend Achievers FT
RDVY is an index ETF tracking the NASDAQ US Rising Dividend Achievers Index (the “Index”). The index’s approach can be summarized as follows:
- Real Estate Investment Trust are excluded
- Minimum trading volume of $5 million
- Paid growing dividends
- Growing earnings
- Low pay-out-ratio (no greater than 65%)
- High Cash to Debt ratio (greater than 50%)
- maximum of 30% from any one sector
RDVY Holdings
| Holding | Percent |
| Archer-Daniels-Midland Company | 2.41% |
| Corteva Inc. | 2.29% |
| Anthem, Inc. | 2.26% |
| Cincinnati Financial Corporation | 2.26% |
| EOG Resources, Inc. | 2.22% |
| Pioneer Natural Resources Company | 2.22% |
| The Allstate Corporation | 2.21% |
| UnitedHealth Group Incorporated | 2.21% |
| Humana Inc. | 2.19% |
| Aflac Incorporated | 2.17% |