3 Dividend Income ETFs That Offer High Yields And Growth

"Dividend income ETFs simplify stock investing and give you plenty of cash flow. These ETFs tend to have high yields and diversified portfolios that prioritize blue-chip stocks. Most of these same funds usually have low expense ratios and are passively managed. If you want high yields and a little bit of growth, you may want to consider these dividend income ETFs."

"VYM has an annualized 12.5% return over the past decade, demonstrating that there is more to this fund than its high yield. It also has a bunch of dividend growth stocks in its top 10 holdings, such as Broadcom ( NASDAQ:AVGO), JPMorgan ( NYSE:JPM), and Walmart ( NASDAQ:WMT). VYM then mixes it up with several high-yield stocks that produce respectable gains, but the stronger selling point for those stocks is their high dividends."

Dividend income ETFs provide high yields, diversified blue-chip-heavy portfolios, low expense ratios, and passive management for steady cash flow with modest growth potential. The Vanguard High Dividend Yield Index Fund ETF (VYM) offers a 2.45% SEC yield, 0.06% expense ratio, more than 500 holdings, heavy financial and tech exposure (~40%), an annualized 12.5% return over the past decade, and predominately large-cap, value-oriented allocations with only 7% in small caps. The Schwab US Dividend Equity ETF (SCHD) has a 3.81% SEC yield, 0.06% expense ratio, roughly 100 stocks, energy and consumer staples concentration, a decade annualized return of 12.9%, and lower recent returns and volatility.

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