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.