Best Dividend Etfs this January 2026

The Vanguard High Dividend Yield ETF (VYM) is an attractive investment for those prioritizing income, featuring a robust dividend yield of 2.44% and a remarkable 5-year return of 55.43%. This diversified fund spans over 500 high-yield stocks, providing investors with exposure to financially healthy companies known for their consistent payouts. With an ultra-low expense ratio of just 0.06%, VYM stands out as a top-rated choice for yield-focused investors.

VYM offers a higher payout compared to VIG, making it more attractive for investors focused on income.

Vanguard Dividend Appreciation ETF (VIG) emphasizes dividend-growing stocks from financially healthy companies, making it an attractive option for investors seeking reliable income. With a low expense ratio of 0.05-0.06%, VIG delivers a solid 1.61% dividend yield and impressive 1-year and 5-year returns of 16.22% and 58.53%, respectively. However, investors should be aware of its higher exposure to the tech sector, which could face volatility in the near future.

VIG has higher exposure to the tech sector, which may face a pullback after significant gains. This could impact its performance if the sector corrects.

The JPMorgan Equity Premium Income ETF (JEPI) offers an attractive yield of 8.25% by investing in large-cap U.S. stocks while utilizing options selling to enhance income. With a focus on low volatility, JEPI has shown a 1.80% return over the past year and a 4.76% return over five years, making it a solid choice for investors seeking consistent income. Notably, positive signals from both short and long-term moving averages point to a favorable outlook for the fund.

JEPI shows mostly positive signals, with buy indications from both short and long-term moving averages, suggesting a favorable outlook for the ETF.

JEPI's decline is attributed to its significant investment in high-priced stocks, particularly in large-cap tech, where many holdings have reached multi-trillion dollar valuations.

JEPI carries risks due to its reliance on equity-linked notes (ELNs), which are sensitive to market fluctuations and involve potential counterparty risk.

The Schwab U.S. Dividend Equity ETF (SCHD) is an attractive option for investors seeking reliable income through high-quality companies with consistent dividend payouts. With a low expense ratio of 0.06%, this fund boasts a solid dividend yield of 3.80% and has delivered a 4.40% return over the past year, alongside a robust 28.38% return over the last five years. Recognized for its focus on financially healthy firms, SCHD is a top-rated choice for those looking to benefit from dividend-growth stocks.

QQQ has significantly more assets under management than SCHD, which can indicate better liquidity. Both funds follow a passive investing strategy without using leverage.

The Invesco S&P SmallCap High Dividend Low Volatility ETF (XSHD) focuses on 60 small-cap stocks that offer high dividend yields and low volatility, making it a compelling choice for investors seeking reliable income. Currently, it boasts an attractive dividend yield of 6.39%, although its performance over the past year has seen a decline of 5.84% and a substantial drop of 37.14% over the last five years. Despite recent challenges, XSHD's strategy of rebalancing semi-annually positions it well for potential recovery, especially as it recently moved above its 50-day moving average, indicating a shift toward a bullish trend.

XSHD has shown a bullish trend, moving above its 50-day moving average on December 10, 2025, indicating a potential upward price movement.

In the past 52 weeks, XSHD has traded between $14.87 and $11.83, indicating moderate volatility.

XSHD has a dividend yield of 6.21%, paying $0.83 per share over the past year, with dividends distributed monthly.

XSHD tracks a dividend-yield-weighted index of the 60 least volatile stocks from the 90 highest-yielding US small-cap stocks.

Targeting the highest-yielding S&P 500 stocks, the SPDR Portfolio S&P High Dividend ETF (SPYD) focuses primarily on the real estate and financial sectors. With a robust dividend yield of 4.52%, it provides investors with consistent income while also showing a 1-year return of 3.71% and a solid 5-year return of 28.04%. Although it may not be the best choice for aggressive growth, SPYD is ideal for those seeking reliable dividends with relatively low risk of price depreciation.

SPYD offers a consistent yield of around 4% with low risk of price depreciation, making it suitable for income-focused investors, though it may only grow about 10% in price over five years.

VOO has significantly more net assets than SPYD, but SPYD offers a higher annual dividend yield of 2.52% compared to VOO's 1.78%.

The dividend growth rate for SPYD is projected at 10.4% annually, with a current yield of 4.0% based on a $1.60 annualized dividend.

SPYD has a dividend yield of 4.41% and paid $1.96 per share in the past year, with dividends distributed quarterly.