Best Dividend Etfs this February 2026

Schwab U.S. Dividend Equity ETF (SCHD) stands out as a top-rated option for investors seeking reliable income through dividend growth. Focused on U.S. dividend-paying stocks from financially healthy companies, it boasts a commendable dividend yield of 3.80% and has delivered a 3.23% return over the last year, alongside an impressive 36.60% return over five years. Its strong fundamentals have earned it a highly regarded Morningstar Medalist Rating, making it a compelling choice for those looking for quality dividend investments.

SCHD was previously a strong performer but has underperformed since January 2022.

Fidelity High Dividend ETF (FDVV) targets high-dividend opportunities, boasting a solid 14.29% return over the past year and an impressive 78.37% over the last five years. With a dividend yield of 2.90%, this ETF offers consistent income while maintaining significant exposure to technology. Investors can expect it to rise approximately 2.72% in the next three months, potentially trading between $57.33 and $59.26.

FDVV is expected to rise 2.72% over the next three months, with a 90% probability of holding a price between $57.33 and $59.26 at the end of this period.

Since 2016, both ETFs have delivered similar returns, with FDVV gaining 13.2% annually compared to VIG's 13.1%. However, FDVV has outperformed over the last year, three years, and five years.

FDVV has a 2.78% yield and recently cut dividends by 7.7% in 2024, following a 48% increase from 2020 to 2023, while SCHD offers a more stable 3.80% yield.

Vanguard High Dividend Yield ETF (VYM) stands out as a top-rated choice for income-focused investors, emphasizing high dividend yields from financially healthy U.S. companies. With a dividend yield of 2.44% and impressive returns of 11.97% over the past year and 61.98% over five years, this ETF is ideal for those seeking reliable income and strong total returns. Recognized among the best for its consistent payouts, VYM remains a compelling option for long-term investment strategies.

VYM tends to underperform compared to most dividend funds during recessions, and its low yield is unlikely to improve in the near future.

The SPDR S&P Dividend ETF (SDY) targets U.S. dividend-growth stocks from financially healthy companies, earning top Morningstar ratings for its consistent payout history. With a dividend yield of 2.60% and impressive returns of 7.85% over the past year and 37.14% over the last five years, it stands out as a compelling choice for income-focused investors. The fund's strong performance suggests it may continue to outperform the broader market, making it an attractive long-term investment option.

SDY has historically outperformed the S&P Composite 1500 Index, with an annualized gain of 9.90% from December 31, 1999, to June 6, 2025, compared to 7.98% for the benchmark.

SDY currently shows buy signals from both short and long-term moving averages, indicating a positive outlook for the ETF.

SDY tracks the S&P High Yield Dividend Aristocrats index, which includes stocks that have increased dividends for over 20 consecutive years.