3 Income ETFs That Paid You and Returned Double Digits. One Yields 3.22% and Returned 23.86%
Quick Read
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SCHD returned 24% over the past year despite yielding just 3.2%, outpacing both DIVO and DGRW across the one-year window.
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Over five years, DGRW’s low-yield growth strategy led all three with 80%, while SCHD, the one-year winner, came last at 56%.
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DIVO writes covered calls on select holdings to generate monthly income but surrenders gains above the strike price when stocks rally sharply.
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Three dividend ETFs paid meaningful income and posted double-digit total returns in the year ending October 2, 2026. Each one stands at a different point between current yield and long-term growth, and over five years the order changes completely.
Amplify CWP Enhanced Dividend Income ETF (NYSEARCA:DIVO) yields 6.5% and returned 12%. Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) yields 3.2% and returned 24%. WisdomTree U.S. Quality Dividend Growth Fund (NASDAQ:DGRW) yields 1.2% and returned 12%.
What These Return Figures Measure
Every return figure here is a total return. It is calculated from adjusted prices and assumes every distribution was reinvested. It answers one question: what happened to an investor who put every payout back into more shares?
Share-price gain is a separate measure. SCHD’s 24% overstates its share-price gain. It also overstates what an investor who took the quarterly payments in cash would have seen the account grow beyond that income. Part of the return had already left the fund as distributions. If you spend the cash, the balance grows by less.
DIVO: Blue Chips With Selective Call Writing
DIVO is an actively managed fund. Its managers buy large dividend-paying companies and write covered calls on individual positions when they think the premiums are worth it. A covered call means selling someone the right to buy your shares at a set price. The fund collects cash up front and gives up any gain above that price.
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The portfolio is concentrated. As of June 30, it held fewer than 30 stocks spread across industrials, financials, technology, energy, and consumer names. Caterpillar (NYSE:CAT) was the largest position at 7% of $7.2 billion in net assets. That filing showed open calls on only two holdings, Caterpillar among them. That is what the tactical overlay looks like in practice. The managers decide which stocks to sell calls on, and when.
Be careful with the headline yield. DIVO pays monthly, and its 2026 payments ran between $0.18 and $0.19 per share. The trailing 12-month window also includes a $0.95 special payment from December 2025, which pushes the 6.5% yield figure above what the regular monthly payments alone would suggest. If a monthly schedule is the whole point, DIVO is one of several worth comparing (we rounded up seven of our favorite monthly payers in a free report here).
When a stock rallies sharply, gains above the strike price go to the call buyer, which is the trade-off. Owning so few stocks also means one weak holding can hurt the whole fund.
SCHD: Rules-Based Quality at Massive Scale
SCHD follows the Dow Jones U.S. Dividend 100 Index. That index selects 100 companies with a record of steady dividend payments, then ranks them on debt and cash flow, return on equity, yield, and dividend growth. The point is to find payouts backed by strong balance sheets. With nearly $95 billion in net assets, it is among the cheapest and most widely held dividend funds.
Distributions are quarterly. The latest was $0.2665 per share in September. Per-share amounts look smaller than in 2023 and 2024 because of the fund’s 3-for-1 split in late 2024.
A mid-range yield paired with the year’s biggest return reflects a fund whose holdings, after years of lagging, had a strong run. The compromise is limited exposure to megacap growth stocks and quarterly rather than monthly income.
DGRW: Giving Up Yield Today for Dividend Growth
DGRW is the fund most income screens overlook, because its yield is too low to show up. Its WisdomTree index chooses dividend payers based on estimated earnings growth and profitability measures such as return on equity and return on assets, then weights them by cash dividends paid. These tend to be companies that keep more of their earnings to reinvest in growth, so the low yield is a result of the design.
The net expense ratio is 0.28%. Payments are monthly but uneven, with larger amounts around quarter-end. The latest was $0.17, compared with $0.055 the month before. A 1.2% yield provides little spending income, so this fund is about compounding rather than paying bills, which is the trade-off.
Yield Rank and Return Rank Flip Over Five Years
Over one year, SCHD, the mid-range yielder, led. DIVO, the highest yielder, came second. DGRW, the lowest yielder, came last. Over five years, the order reverses. DGRW led with 80%, while SCHD, this year’s leader, came last at 56%. DIVO did not lead either period.
A fund’s yield rank tells you nothing about its return rank, and a one-year window can point the opposite way from a five-year one. These are different tools for different goals.
Why One Strong Year Proves Little
SCHD’s 24% is far above what a dividend-focused fund usually returns in a year. Treat it as an unusual result and don’t project it forward. A single year often reflects one rotation into or out of a style, and a five-year window covers just one market cycle. These figures should not be read as a forecast.
Which Fund Fits Which Investor
DIVO is built for steady monthly cash with capped upside. SCHD is built as a low-cost, rules-based core with quarterly income. DGRW is built for dividend growth and compounding over income today.
Learn 7 Ways To Generate Income With A $1,000,000+ Portfolio
If you’ve saved over $1,000,000, this guide is for you. The last thing you want in retirement is to run out of money, you want your money to generate lasting income while you enjoy your life.
Now you can learn the strategies wealthy retirees use to fund their retirement with The Definitive Guide to Retirement Income from Fisher Investments. Download the guide today! (sponsor)
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