Best Dividend ETFs for ANY Investor – 2021

Dividend ETFs are a safe bet when you want to invest in stocks that pay out dividends. Many investors prefer dividend-paying stocks as they seem like passive income bets. Combining dividend-paying stocks within a portfolio like an ETF does, further diversifies your account, making it even safer.

Here we lay out our favorite picks for the best dividend ETFs for 2021. We know investors come in all risk levels, and sizes of pocket books. We’ve broken out each type of fund for each type of investor.

First Things First – What is an ETF?

Many new investors hear “ETF” and think its a scary and complicated term. You might assume only the big fund folks deal with ETFs. On the contrary, these Exchange Traded Funds are actually meant for YOU!. These simply are funds that hold a collection of different stocks and securities in order to be more diversified, lowering the risk you take on any one investment. Think of it like purchasing one portfolio of the best companies all at once, instantly keeping your diversified in case one stock crashes.

If you are looking to minimize your risk, but still have a piece of the action on Wall Street, look no further than diversifying yourself, paying less in commission fees as you create less transactions, and allowing the fund to manage the underlying stocks.

Best Overall Dividend ETF in 2021 – VIG – 1.61% Yield

The Vanguard Dividend Appreciation Index Fund ETF (VIG) aims to include companies who have proven success time and time again. These companies are usually companies who have a history of increasing their dividend payouts over the years. Some of their top allocations are Microsoft, Walmart, and Proctor & Gamble.

The fund boasts a 1.61% yield, but includes safe stocks that send to constantly pump out profitable income statements.

Best Growth-Focused Dividend ETF in 2021 – SYLD – 2.16% Yield

Cambria Shareholder Yield ETF (SYLD) focuses on stocks that have high cash distribution, greater than $200M in market capitalization, and a history of high dividend payout and stock buybacks.

SYLD yields a 2.16% dividend, but its growth in value alone has been astronomical lately for an ETF – Just check out the graph (As of 2-9-2021)

Best Growth Dividend ETF in 2021 – SYLD – 2.16% Yield

Cambria Shareholder Yield ETF (SYLD) focuses on stocks that have high cash distribution, greater than $200M in market capitalization, and a history of high dividend payout and stock buybacks.

SYLD yields a 2.16% dividend, but its growth in value alone has been astronomical lately for an ETF. The movement from April 2020 until February 2021 has gone from $23.09 to $54.01. You can learn more about analysis stock charts and patterns at our learning center area.

Best High Dividend ETF in 2021 – VYM – 3.05% Yield

Vanguard High Dividend Yield ETF (VYM) Targets mainly high dividend-paying companies. Some of its largest holdings are Johnson & Johnson, JPMorgan, and Proctor and Gamble. The current yield is 3.05%.

Best Passive Dividend ETF – VTI – 1.3%

While Vanguard Total Stock Mkt ETF (VTI) has a relatively small dividend yield, it seeks to mirror the overall stock market. If you believe the market is in an uptrend and will continue doing so, this might be a safe bet to passively invest in. It pays out a 1.3% dividend, the lowest on this list, but is the most diversified as it matches the performance of the market overall.

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