Top 5 U.S.-Listed Dividend ETFs

In an environment where interest rates remain elevated and income stability is top of mind for investors, dividend-focused exchange traded funds (ETFs) continue to be one of the most effective ways to generate passive income while maintaining equity exposure. The best dividend ETFs offer attractive yields, reliable payouts, low costs, and exposure to high-quality companies with durable cash flows.

To help investors navigate the growing field of income-generating funds, Benzinga selected the five best U.S.-listed dividend ETFs as of June 2025, drawing from the most up-to-date performance and fund data available. These ETFs stood out for their current income potential, track records of total return, dividend consistency, sector diversification, and underlying portfolio health.

Quick Look at the Best Dividend ETFs:

Each ETF was evaluated using Benzinga’s dividend-focused methodology, which prioritizes yield and dividend growth, payout sustainability, expense ratio efficiency, sector and factor exposure, long-term performance, and index transparency. The result is a list of funds that combine income generation with long-term durability—an essential balance in a yield-conscious market.

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

Why It’s #1: Schwab U.S. Dividend Equity ETF is often regarded as the standard for dividend ETFs. It targets 100 high-quality U.S. stocks with at least 10 years of dividend growth, applying strict screens for sustainability (such as strong cash flow and low debt). It ensures reliable payouts (current yield about 3.7% and dividend growth, supported by holdings like PepsiCo and Cisco. 

Schwab U.S. Dividend Equity ETF limits any sector to 25% of its portfolio, so it stays well-diversified across dividend-friendly sectors (industrials, financials, tech, etc.). 

The ultra-low 0.06% expense ratio maximizes net income. Performance has been strong with annualized gains of roughly 12% over 5 years. Over the past decade, the fund returned 11% annually, balancing high yield and solid growth. The combination of high yield, quality-focused strategy, and low cost makes SCHD a top choice for long-term dividend investors.

2. Vanguard High Dividend Yield ETF (VYM)

Vanguard High Dividend Yield ETF offers broad exposure to U.S. large-cap value stocks with above-average dividend yields. Tracking the FTSE High Dividend Yield Index, it holds nearly 600 stocks (excluding REITs) including blue chips like ExxonMobil and Johnson & Johnson. 

Its breadth provides diversification across sectors (financials, energy, healthcare, consumer staples), which helps stabilize income. Vanguard High Dividend Yield ETF’s current dividend yield is 2.7%, and it has a strong record of consistent payouts. Underlying holdings generally have moderate payout ratios (many banks and pharma stocks), supporting sustainable dividends. 

With a 0.06% expense ratio, Vanguard High Dividend Yield ETF is cost-efficient. Its performance history is solid if not spectacular; about a 13% total return over the past year, and roughly 9% and 13% annualized over the 3- and 5-year periods respectively. Those returns reflect a rebound in value stocks and steady income. Vanguard High Dividend Yield ETF may not have the fastest dividend growth, but as a low-cost, high-yield fund with broad sector exposure, it is an excellent core dividend holding.

3. Vanguard Dividend Appreciation ETF (VIG)

The Vanguard Dividend Appreciation ETF focuses on dividend growth as it holds companies that have increased dividends for at least 10 consecutive years. Its 300+ holdings skew toward high-quality large caps like Microsoft, Apple, and Procter & Gamble, which tend to have low payout ratios and robust free cash flow, ensuring reliable dividend growth. 

Vanguard Dividend Appreciation ETF’s 1.8% yield is lower than high-yield peers, but the trade-off is steady dividend increases and price appreciation. It’s well-diversified across sectors (tech, consumer staples, industrials, and more), which helps mitigate risk. The expense ratio is just 0.05%, one of the lowest in its category. 

The Vanguard Dividend Appreciation ETF has delivered strong total returns with nearly 13% annualized over 5 years, with 11% over 3 years. Its 10-year track record (11% annually) points to its reliable growth focus. Vanguard Dividend Appreciation ETF could be ideal for investors prioritizing dividend growth and quality over immediate yield, as it provides exposure to companies likeliest to keep raising payouts through varied market conditions.

4. iShares Core Dividend Growth ETF (DGRO)

The iShares Core Dividend Growth ETF takes a blended approach, aiming for a balance of yield and dividend growth. It tracks a Morningstar index of U.S. stocks with at least five years of dividend growth and excludes the highest-yielding stocks if their payouts may be unsustainable (e.g. those with very high payout ratios). 

The result is a portfolio of 400+ stocks (recent yield about 2.3%) that includes companies with secure, growing dividends like JPMorgan, Coca-Cola, and Chevron. The focus on moderate payout ratios and earnings growth supports payout sustainability. DGRO is also low-cost (0.08% expense) and diversified across sectors (financials, healthcare, tech, and more), avoiding heavy concentration in any one area. 

On performance, the iShares Core Dividend Growth ETF returned roughly 12% in the last year, and about 9.4% and 12.6% annualized over the past 3 and 5 years, comparing favorably with broader market benchmarks. The solid total return, alongside a moderate yield, could make the iShares Core Dividend Growth ET a great all-around pick for long-term dividend investors seeking both income and growth.

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

The ProShares S&P 500 Dividend Aristocrats ETF is unique in that it holds only the “Dividend Aristocrats,” or S&P 500 companies with 25 or more years of consecutive dividend increases. 

The list (about 65 stocks) spans multiple sectors (from consumer staples like Coca-Cola to industrials like 3M), and the ProShares S&P 500 Dividend Aristocrats ETF equal-weights them so that each holding has similar influence. The approach reduces single-stock risk and prevents any sector (industrials and consumer staples are the largest here) from dominating. 

The fund’s emphasis on companies with extremely long dividend-growth histories speaks to exceptional payout stability and quality. The firms tend to have conservative payout ratios and resilient cash flows. The ETF’s current yield is 2.5%, and it has seen steady (if not high) dividend growth given the mature nature of its holdings. 

Its expense ratio (0.35%) is higher than the other funds on our list, but you are paying for a specialized, rules-based strategy. ProShares S&P 500 Dividend Aristocrats ETF’s recent total returns have been decent with roughly 6% over the last year, and about 5% and 10% annualized for 3 and 5 years. 

While the fund has lagged growth-oriented funds in the past few years, it tends to outperform in weaker markets due to its defensive, high-quality stock mix. For investors who value pedigree of dividend consistency and lower volatility, the ProShares S&P 500 Dividend Aristocrats ETF could be a top choice.

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