7 BEST Dividend ETFs To BUY & Hold Forever - Buy Before 2025!

Summary

In this video, the speaker shares insights on dividend investing, highlighting seven top ETFs they would invest in if starting over. The ETFs include low and high yield options, with a focus on quality holdings and consistent dividend growth. Notable picks are the Schwab US Dividend Equity ETF (ISD), Vanguard Dividend Appreciation Index Fund (VIG), and Amplify CWP Enhanced Dividend Income ETF (CWP). The speaker also discusses the appeal of high-yield ETFs like the JP Morgan NASDAQ Equity Premium Income ETF (JEQ) and the Simplified Volatility Premium ETF (SALL), offering strategies for both income and growth.

Takeaways

• 😀 The speaker shares insights on dividend investing and their top picks for ETFs if they could start over.
• 💼 The first ETF recommended is ISD, the Schwab US Dividend Equity ETF, known for its low expense ratio and consistent dividend growth.
• 📈 The speaker emphasizes the importance of investing in high-quality dividend growth ETFs, like VI, the Vanguard Dividend Appreciation Index Fund, for long-term gains.
• 📊 Diversification is key, as highlighted by the speaker's mention of DGRO, the iShares Core Dividend Growth ETF, which holds over 400 stocks for broad exposure.
• 💰 For those seeking higher yields, the speaker suggests considering covered call ETFs like JEP, the JP Morgan NASDAQ Equity Premium Income ETF, offering a 10% yield.
• 🚀 The speaker also mentions SPY, the NEOS S&P 500 High Income ETF, for its high dividend yield of around 12.15%, despite its relatively new trading history.
• 📉 For risk-tolerant investors, SALL, the Simplified Volatility Premium ETF, is recommended for its high yield potential, though it comes with higher risk.
• 📚 The speaker offers a free ebook and dividend tracker for investors to learn more about dividend investing and track their progress.
• 💡 The speaker advises new investors to focus on quality over immediate high yields, learning from their own early investing mistakes.
• 🔍 The speaker's recommendations are based on historical performance and personal experience, suggesting that they could be good long-term investments.

Q & A

What is the main topic of the video?

The video discusses seven dividend-paying ETFs that the speaker would invest in if they could start their dividend investing journey over, based on everything they've learned.

Why does the speaker favor the Schwab US Dividend Equity ETF (SCHD)?

The speaker favors SCHD due to its low expense ratio, strong basket of holdings with consistent dividend growth, and historical upward price movement.

What mistake did the speaker make early in their investing journey?

The speaker initially chased high-yielding stocks instead of focusing on long-term growth through quality dividend ETFs, which they now believe was a mistake.

Why does the speaker recommend the Vanguard Dividend Appreciation ETF (VIG)?

The speaker recommends VIG for its exposure to high-quality sectors like technology, financials, and healthcare, and its historical price growth and increasing dividend payouts.

What makes the Amplify CWP Enhanced Dividend Income ETF (DIVO) appealing?

DIVO is appealing because it combines a basket of high-quality stocks with covered call strategies, providing both growth potential and a high starting dividend yield of around 5%.

What is the key benefit of the JP Morgan Nasdaq Equity Premium Income ETF (JEPI)?

JEPI provides consistent monthly income with a high yield of around 10%, making it attractive for investors seeking regular cash flow while maintaining exposure to the tech-heavy NASDAQ.

How does the NEOS S&P 500 High Income ETF (SPYI) differ from traditional growth-focused ETFs?

SPYI offers a high trailing 12-month dividend yield of around 12%, focusing more on income generation through covered call strategies rather than long-term growth.

What makes the iShares Core Dividend Growth ETF (DGRO) a strong choice for diversification?

DGRO offers exposure to over 400 stocks, providing significant diversification. This ensures that even if some stocks underperform, the overall portfolio remains stable and continues to grow.

What risk is associated with the Simplify Volatility Premium ETF (SVOL)?

SVOL shorts the volatility index, making it riskier and more suitable for investors with a higher risk tolerance. While it offers a high yield of around 16%, its performance depends on market stability.

What is the speaker's overall approach to investing in dividend ETFs?

The speaker now prioritizes investing in high-quality, dividend-growth ETFs with stable and consistent payouts, focusing on long-term gains rather than chasing immediate high yields.

Outlines

00:00

💡 Reflecting on Dividend Investing Strategies

The narrator begins by addressing a common question about what stocks or ETFs they would invest in if they could start their dividend investing journey again, knowing everything they know now. They plan to share seven favorite dividend-paying ETFs, varying from low to high yield, which would be foundational in their portfolio if they could start over. Viewers are encouraged to stay tuned to learn about these potential top picks and are invited to check out the narrator's new dividend investing eBook and tracker.

05:01

📊 ETF #1: Schwab U.S. Dividend Equity ETF (SHD)

The first ETF discussed is the Schwab U.S. Dividend Equity ETF (SHD), which the narrator regrets not investing in earlier. SHD offers a low expense ratio, a strong historical growth pattern, and a reliable basket of about 100 stocks that consistently pay and raise dividends. The narrator advises new investors to consider this ETF for its high dividend growth potential, emphasizing its value for long-term investors even toward the end of 2024 and beyond.

🚀 ETF #2: Vanguard Dividend Appreciation Index Fund (VIG)

The second pick is the Vanguard Dividend Appreciation Index Fund (VIG), noted for its high beta, strong price growth, and diversified sector exposure to technology, finance, and healthcare. It holds top-performing stocks like Apple, Microsoft, and JP Morgan. Though it has a lower dividend yield, VIG offers consistent dividend growth over time, making it attractive for long-term investors who can afford to wait for growing dividends.

💼 ETF #3: Amplify CWP Enhanced Dividend Income ETF (DVO)

Amplify CWP Enhanced Dividend Income ETF (DVO) is highlighted as a balanced option for yield and growth. It consists of around 40 high-quality stocks and employs a covered call strategy to generate additional income. DVO has shown solid growth and offers a 5% dividend yield, paid monthly. It's recommended for investors seeking a mix of steady income and growth potential.

📈 ETF #4: JP Morgan NASDAQ Equity Premium Income ETF (JEPI)

The JP Morgan NASDAQ Equity Premium Income ETF (JEPI) is described as the gold standard for covered call ETFs. With a trailing 12-month yield of 10%, JEPI provides significant monthly income while offering limited upside growth. Though it's seen modest growth compared to tech stocks, it remains popular for investors focused on high yield and lower volatility.

🏦 ETF #5: NEOS S&P 500 High Income ETF (SPYI)

NEOS S&P 500 High Income ETF (SPYI) is the fifth ETF, noted for its relatively short trading history but impressive trailing 12-month yield of over 12%. While it hasn’t shown as much growth as other ETFs, it has consistently paid solid dividends, making it appealing for yield-focused investors who want exposure to the S&P 500 without prioritizing growth.

🌍 ETF #6: iShares Core Dividend Growth ETF (DGRO)

iShares Core Dividend Growth ETF (DGRO) is a long-time favorite for its significant diversification across 400+ stocks. It's highlighted as a great choice for investors who prefer broader exposure to mitigate risk. DGRO has a reasonable expense ratio and offers around a 2.25% dividend yield. Its consistent growth in both share price and dividends over time makes it an attractive long-term investment.

🎯 ETF #7: Simplify Volatility Premium ETF (SVOL)

The last ETF, Simplify Volatility Premium ETF (SVOL), is a high-risk, high-yield option, offering a yield of around 16-17%. It shorts the volatility index (VIX), performing well when the market is stable or rising. However, it comes with significant downside risk, making it unsuitable for large portfolio positions. Despite its volatility, the narrator plans to add more SVOL to boost income in the short term.

🔔 Conclusion: Reviewing the 7 Favorite ETFs

The narrator recaps the seven favorite dividend-paying ETFs discussed, emphasizing that they are well-positioned for future growth and income. They acknowledge the current market volatility but believe these ETFs could present solid buying opportunities. Viewers are encouraged to share which ETF they would choose to hold long-term and are invited to subscribe for more content.

Keywords

💡Dividend ETFs

Dividend ETFs are exchange-traded funds that focus on companies consistently paying dividends to shareholders. In the video, the speaker highlights these ETFs as a core part of their investment strategy, particularly those that offer both growth and yield. Examples mentioned include SHD and VIG, which have steadily increased dividends over time.

💡Expense Ratio

The expense ratio is the annual fee charged by an ETF or mutual fund, expressed as a percentage of the fund's average assets. In the video, the speaker emphasizes the importance of low expense ratios in ETFs like SHD and VIG, which helps investors keep more of their returns over time.

💡Dividend Growth Rate

Dividend growth rate refers to the annualized percentage rate at which a company's dividend payments increase. The speaker stresses this concept when discussing ETFs like SHD and VIG, which offer a high dividend growth rate, meaning investors receive increasing dividend payments as the companies grow.

💡High Yield

High yield refers to investments that provide above-average income, typically from dividends or interest. In the video, high-yield ETFs like JEPI (JP Morgan Equity Premium Income ETF) and DIVO are highlighted for their potential to provide substantial income to investors, often at the cost of slower growth compared to growth-focused ETFs.

💡Covered Calls

Covered calls are an options strategy where an investor holds a long position in an asset and sells call options on that asset to generate additional income. DIVO, one of the ETFs mentioned, uses this strategy to enhance dividend yield, offering investors a balance of income and growth.

💡Monthly Dividends

Monthly dividends are distributions paid to shareholders every month, as opposed to quarterly or annually. The speaker highlights ETFs like JEPI and DIVO, which pay dividends on a monthly basis, making them appealing for investors seeking regular income.

💡Risk Tolerance

Risk tolerance refers to an investor's ability and willingness to endure market volatility or losses in their investment portfolio. In the video, the speaker touches on their personal risk tolerance when discussing riskier, high-yield ETFs like SVAL, suggesting these may not be ideal for all investors.

💡Diversification

Diversification is an investment strategy that involves spreading investments across various assets to reduce risk. The speaker discusses the importance of diversification, especially with ETFs like DGRO, which holds over 400 stocks, helping to mitigate the impact of any single stock's poor performance.

💡Volatility

Volatility refers to the degree of variation in the price of a financial instrument over time. The video addresses volatility when discussing ETFs like SVAL, which shorts the volatility index, offering high yields in sideways or upward-moving markets but at the risk of losing value during periods of high volatility.

💡Long-Term Investing

Long-term investing involves holding investments for an extended period, typically years, with the expectation that they will grow in value over time. The speaker advocates for a long-term approach, particularly when discussing dividend growth ETFs like SHD and VIG, which have historically provided steady returns and increased dividends.

Highlights

The speaker shares insights on dividend investing and their top picks for ETFs if they could start over.

Seven favorite dividend ETFs are recommended for a potential investment portfolio.

The Schwab US Dividend Equity ETF (SDS) is highlighted for its low expense ratio and consistent dividend growth.

The importance of investing in high-quality dividend growth style ETFs is emphasized.

Vanguard Dividend Appreciation Index Fund (VIG) is praised for its significant price growth and high-quality holdings.

Amplify CWP Enhanced Dividend Income ETF (CWP) is noted for its high initial yield and consistent dividend payments.

JPMorgan NASDAQ Equity Premium Income ETF (JEQ) is recognized for its high yield and covered call strategy.

SPDR S&P 500 High Dividend ETF (SPYD) is mentioned for its high dividend yield despite relatively modest growth.

EYE Shares Core Dividend Growth ETF (DGRO) is recommended for its diversification and consistent dividend growth.

Simplified Volatility Premium ETF (SFY) is introduced as a high-yield option for risk-tolerant investors.

The speaker discusses the potential benefits of each ETF in the current market turbulence.

A free dividend investing ebook and custom dividend tracker are offered as resources for investors.

The speaker's personal journey from $0 invested to earning over $6,000 monthly and $1 million invested is shared.

The video encourages viewers to subscribe for more content and engage in the comments section.

A call to action for viewers to share their top ETF choice based on the video's content is made.

Transcripts

now quite often I receive a pretty valid

good question and it's that if I could

go back eight or so years and start over

in my dividend investing Journey knowing

everything I know now what are some of

the top stocks or ETFs I would invest

into again knowing all the things I've

learned over the years so in this video

we're going to make it simple and I'm

going to share with you seven of my

favorite dividend paint ETFs some are

low yield some are higher yield but

every single one of these dividend ETFs

would be a part of my portfolio if I

could of course go back and start over

with everything that I know today so if

you want to see which seven dividend

ETFs could potentially be the best

across the entire Market in my opinion

at least make sure to stick around drop

a like down below and let's get right

into the first one real quick for those

that haven't already make sure to go to

the first link in my description and

grab my new dividend investing ebook

where I share exactly how I went from $0

invested to now earning over $6,000 on a

monthly basis and over $1 million

invested in the Market along with the

ebook you're also going to receive my

custom dividend tracker where you can

track your dividend progress on an

ongoing basis and reach your dividend

investing goals so make sure to grab

yourself a copy of my dividend investing

ebook and the new dividend tracker today

it's the first link in my description so

the first dividend paying ETF that I

would without a doubt invest into

especially if I could start over I would

have put a lot more of my initial cash

balance into this win early on ISD or

the Schwab us dividend Equity ETF now in

the early days of my investing I always

heard people talk about these dividend

growth style ETFs and say that they have

a high quality basket of Holdings and

they keep paying more and more in

dividends over time but me being sort of

a young knucklehead and not really

wanting to wait to get paid more

divident income I was chasing some of

the higher yielding names in my early

days of investing and if I could go back

I definitely wouldn't have done so now

one of the main reasons I think shd is

one of the top ETFs to invest into even

to this day is the fact that it has a

cheap expense ratio it historically at

least has went up into the right over

time as far as share price but also on

top of that it has a rock solid basket

of Holdings a 100 or so different stocks

that all have been paying dividends

consistently and raising dividends over

time which gives ETFs like this one a

high dividend growth rate or in other

words means you're going to get paid

more and more in divident income

consistently at least it has

historically now without a doubt I

always tell especially newer investors

to look into some of the high quality

dividend grow style ETFs I guess just

sort of like what I heard during my

early days of meting but towards the end

of 2024 and moving into next year I

still think this ETF for a long-term

investor is a great opportunity now

speaking of high quality dividend growth

names this is another one that's on my

top list this is actually an ETF that

I've been buying a lot more of as it

recently I'm talking about VI or the

Vanguard dividend appreciation Index

Fund this ETF is a little bit higher

beta than that of shd or some of the

other names but still offers basically

everything a high quality dividend

growth ETF can offer meaning that the

ETF has grown in price significantly

over time this one's up around

275% on the max time frame on top of

that with Vig getting a very high

quality breakdown exposure to things

like technology financials and

Healthcare making the majority of the

ETF a little bit higher beta and getting

massive exposure names like apple

Microsoft names like JP Morgan broadcom

names that historically have went up

into the right significant but also VI

is cheap to own just like shd and also

just like shd VI offers a decent sort of

smaller dividend yield but has paid more

and more dividends over time as you can

see right here in the chart up and to

the right as far as dividend growth goes

so even if you're not earning the most

amount of cash flow from day one and

trust me I feel you it's going to be

hard in the early days to not want as

much cash flow as possible VI and other

highquality dividend gr style ETF like

this one are going to pay you more and

more as the years go on at least they've

done so historically now another one of

my top ETF moving forward towards the

end of this year and into early 2025 is

still Deo to amplify cwp enhanced divid

inome ETF this ETF has been in my

portfolio for several years now dvo

basically buys into a small basket of

Holdings around 40 different stocks all

super high quality names in my opinion

for the most part and then sells cover

calls on the basket Now by doing so dvo

not only has had upside as you can see

around 60% and this is over the last

just few years but along with that dvo

offers almost a 5% starting yield and a

monthly paid dividend that isn't

necessary growing like crazy but has

been going up into the right over the

past several years now for those

investors out there that want some yield

but also want some growth whenever I

hear that I always think about dvo this

is the first one that comes to mind

because again it's grown a lot over the

years but also pays a lot more yield

than some of the other traditional more

lowcost funds now for those that want a

little more yield a little bit faster

Jeep Q the JP Morgan NASDAQ Equity

premium income ETF is sort of the gold

standard and or the goat as far as

covered colle ETFs now Jeff Q is only up

around 4.37% on the next time frame but

keep in mind when Tech or the NASDAQ

moves up Jep Q has moved up a lot with

it but with that Jep Q also pays around

10% trillion 12mth yield so this ETF

even if it has a tiny bit of upside has

been paying investors consistent monthly

income which again might be higher or

lower due to things like volatility and

option premiums but je Q is a great

option for those investors out there

that want some exposure to yield but

want it in sort of a more or less safe

manner Jeep Q is a massive ETF with

around 15.2 billion in assets under

management and across the dividend

investing Community Jep Q is one of the

favorites of all time now another ETF

that I would definitely add to my

portfolio if I was starting today and or

an ETF that I think is sort of a top ETF

moving forward is definitely spy or the

NEOS S&P 500 High income ETF this ETF in

the max time frame is only up around a

percent but keep in mind it's only been

trading for a few years now this ETF

although isn't the biggest as far as

growth goes it offers around a 12.15%

trilling 12mon divid yeld so at least

historically this ETF has paid investors

anywhere from 4847 to 50 cents pretty

consistently over the past several years

as far as distributions go now again if

you're looking for more dividend growth

Focus names this one along with Jep Q

might not be the best options but as far

as those investors out there like myself

that want at least a little bit of

exposure to some yield SP SPI as far as

cover call style ETFs go in my opinion

offer a great strategy and at least

historically so far has done pretty well

now another one of my favorites I have

to include this one in here too if I

could start over SL moving forward top

names dgro the ey shares core dividend

growth ETF would have to been the list

this ETF has grown like crazy over time

and also has a really high quality

basket of Holdings something I like

about dgro is that it has a lot of

stocks within it 400 plus different

names so as you get older and you keep

investing you're probably going to want

more exposure to even more

diversification because you're not

really going to have time necessarily to

watch over every single holding or every

single stock within every ETF so what's

nice about with names like this one even

if 1 2 3 10 20 different names within

the ETF have a bad quarter or a bad year

there's so many names in here that make

up a portion of this ETF F which means

you're probably more or less going to be

fine now dgro has grown like crazy over

time like I said it's very well

Diversified it's cheap to own very cheap

to own that is at 0.08% and on top of

that as far as dividend income goes

around 2.25% trillion 12 month but also

just like shd and VI DJ has consistently

offered a decent dividend growth rate

which has paid investors more and more

cash flow at least historically now even

though I don't own much dgro as of right

now I would not be surprised if this

turns into a daily Buy in my portfolio

pretty soon here and I definitely

recommend you look into this one if

you're looking for some high quality

dividend growth now lastly this is sort

of a curveball but for investors out

there that want some exposure to some

very high yield I'm talking like 16 17%

yield and have a little bit more of an

appetite for risk Sall or the simplified

volatility premium ETF this ETF

basically shorts the volatility index so

as long as the market trades sideways

and or up which again historically it's

done that a lot of times s fall is going

to do pretty well even though on the

next time frame s fall is down around

15.8% now that being said this ETF is

only down around 5% % on the one year

and has paid around 16% yield so

investors are still actually up on their

investment if they bought it a year ago

now es fall only cost around $21 per

share as of right now and is offering

around 30 cents pretty consistently as

far as distributions to investors now I

Would by no means ever make an ETF like

this one a large portion of my portfolio

just due to my risk tolerance and what

I'm looking for but moving forward

throughout the rest of this year Sall is

going to be on my daily buy list and I'm

going to add a little bit more into this

one just to boost up my income until I

get it to a certain point so there we

have it those are 7fs seven of my

favorite dividend paint ETFs to

potentially buy or look into moving

forward towards the end of this year and

into early next year now with the

current turbulence in the market and all

the volatility that we've seen over the

past several weeks anything can happen

and there could be some good buying

opportunities especially with some of

these names that at least historically

have been a little bit more pricey as of

recent but now that we went through all

seven of my names I want to hear from

you guys in the comments down below if

you could only hold on to one of the

ETFs that I talked about in today's

video which one would it be and why drop

the ticker symbol in the comments down

below if you enjoyed this video make

sure to please drop a like on And

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this thanks as always for stopping by

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