3 High Yield Dividend ETFs For Long Term Investors
If you’re looking to build a portfolio that generates steady income for you throughout 2026, you need to look beyond dividend stocks. While they can generate passive income, they also carry risks. On the other hand, exchange-traded funds (ETFs) offer a low-risk way of generating passive income. While the goal isn’t making big money, it is about having a predictable source of income that doesn’t disappoint during market ups and downs. Schwab US Dividend Equity ETF (NYSEARCA:SCHD), JPMorgan Equity Premium Income ETF (NYSEARCA:JEPI) and Global X SuperDividend ETF (NYSEARCA:SDIV) are three ETFs ideal for long-term investors. They stand out because of their high yield and quality companies. Through these ETFs, you get to own some of the biggest U.S. companies at low cost and low volatility.
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SCHD tracks 100 dividend stocks with a 3.79% yield and 0.06% expense ratio.
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JEPI uses covered calls to generate an 8.21% yield with monthly dividends.
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SDIV invests globally in high-yield stocks with 8% yield and exposure across emerging markets.
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One of the best and most obvious high-yield dividend ETFs is the Schwab U.S. Dividend Equity ETF. When it comes to high-yield ETFs, Schwab doesn’t disappoint. It has a yield of 3.79%, which attracts investors of all kinds. The fund has an expense ratio of 0.06% and invests in 100 stocks.
The ETF excludes real estate investment trusts and builds a composite score for all the stocks being considered. It tracks the Dow Jones U.S. Dividend 100 Index and screens stocks on the basis of profitability, dividend payment consistency, and strong balance sheets. SCHD doesn’t just chase the highest yield in the market, but it offers exposure to various sectors in the country.
The fund has the highest allocation in the energy sector (19.34%), followed by consumer staples (18.50%) and healthcare (16.10%). To maintain the high yield, it invests in companies that have a strong history of dividend payments. These include Merck and Company, Coca-Cola, PepsiCo, Chevron Corporation, and Verizon Communications.
Exchanging hands for $27.71, SCHD is one of the cheapest ETFs available in the market today. The fund is updated annually and offers an ideal mix of income and growth stocks.
Another ETF known for a high yield is the JPMorgan Equity Premium Income ETF. It looks appealing to investors for a yield as high as 8.21%, which makes it one of the top ETFs for passive income investors. JEPI sets itself apart by a unique investment strategy.
It follows a two-step method. First, the fund manager identifies top quality stocks to hold, and second, it uses covered calls to generate a premium, which helps maintain the high yield. What makes it even more attractive is the monthly dividend. You get a check each month, and the ETF has a dividend growth of 10.31%.
It owns large-cap stocks and invests 16% in the technology sector, 12.3% in healthcare, and 11.6% in industrials. The ETF holds 123 stocks and has a strong mix of income and growth stocks. Its covered call option allows it to maintain stability during market pullbacks and ensure steady income. JEPI’s top 10 holdings include Alphabet Inc., AbbVie, Johnson & Johnson, Amazon, Apple, Nvidia, and Microsoft.
JEPI has generated a cumulative 5-year return of 60.32% and is exchanging hands for $57.43. It pays an annual dividend of $4.29 and is one of the rare ETFs that pay monthly dividends.
The Global X SuperDividend ETF is an investment option that gives you global exposure. The fund invests in equities around the globe and owns 100 of the highest-paying dividend stocks in the world. It has a yield of 8% and has made monthly distributions for 14 years.
SDIV doesn’t limit itself to large-cap stocks and owns several small- and mid-cap stocks that have high yield. It has the highest allocation to stocks in the United States (26.3%), followed by Brazil (15.4%) and Hong Kong (12%). Sector-wise, it allocates 28.6% to financials, 21.6% to the energy sector and 13.2% to real estate.
The fund offers ultimate geographic diversification and spreads risk across different economies, sectors, and companies. SDIV has gained 15.83% in 2025 and is exchanging hands for $24. It makes monthly dividend payments, and its annual payout is $2.12.
The ETF has an expense ratio of 0.58%, which means you only pay $58 for an investment of $10,000. Some of its holdings are smaller companies in the emerging market that carry risk. But if you can handle a little volatility for a high yield, SDIV will not disappoint. With interest rate cuts happening, SDIV could deliver a good upside for investors.
You may think retirement is about picking the best stocks or ETFs, but you’d be wrong. Even great investments can be a liability in retirement. It’s a simple difference between accumulating vs distributing, and it makes all the difference.
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