5 Dividend ETFs With Yields Too Strong For Passive Income Investor To Ignore

If you’re even thinking about retirement, one of the last things you need to worry about is consistent cash flow. Instead, you’ll want your money to help make you money.  One way to do that is with high-yielding exchange-traded funds (ETFs).

With high-yield funds, you aren’t constantly timing withdrawals or watching market swings. Instead, these funds are a passive investment idea that can deliver consistent income while still offering long-term growth potential.

Some of the best options for finding stocks with high yields are exchange-traded funds (ETFs). ETFs offer diversification, professional management, and low costs. These are three traits that become increasingly important as you move from accumulation to preservation and income.

Here are five you may want to consider.

JPMorgan Nasdaq Premium Equity Income ETF 

Look at the JPMorgan Nasdaq Equity Premium Equity income ETF (JEPQ), for example. With a yield of about 11.6%, the ETF generates income by selling covered call options on its portfolio while also investing in U.S. large-cap growth stocks. It’s paying out the option premium to investors, supplementing the dividend paid by its holdings. Instead of relying just on traditional dividends, JEPQ uses options to convert price movement into cash flow.

Most recently, it paid a dividend of just over 57 cents per share on January 5. Before that, it paid just over 55 cents on December 3. Before that, it paid out just over 47 cents per share on November 5. While its payouts fluctuate based on options income, the fund has consistently delivered meaningful distributions.

Vanguard International High Dividend Yield Fund ETF 

If you want to diversify beyond U.S. markets, the Vanguard International High Dividend Yield Fund ETF (VYMI) provides access to high-quality global income stocks. It also yields 3.64%.

With an expense ratio of 0.17%, the ETF targets 1,534 global companies, such as Nestlé, Novartis, Toyota, and Shell. All are established companies with strong balance sheets, global revenue streams, and a history of returning capital to shareholders.

Most recently, the fund paid out a dividend of just over 93 cents per share on December 23. Before that, it paid just over 70 cents per share on September 23. And before that, it paid a dividend of just over $1.07 per share on June 24. While international dividends can be volatile, with currencies, VYMI has delivered meaningful income over time.

Beyond yield, VYMI provides an important portfolio benefit: geographic diversification. Retirees who rely heavily on U.S. stocks may be overexposed to domestic issues. By incorporating international dividend stocks, you can diversify your risk.

Vanguard Dividend Appreciation ETF 

With an expense ratio of 0.05% and a quarterly dividend, the Vanguard Dividend Appreciation ETF (VIG) tracks the performance of the S&P U.S. Dividend Growers Index.

In addition, the VIG ETF has just over $120.4 billion in assets under management, a well-diversified portfolio of 338 stocks, and offers a low-cost, resilient, growth-oriented option for smart investors.

Some of its other holdings include Broadcom, Microsoft, JPMorgan, Apple, Visa, Eli Lilly, and Exxon Mobil, to name just a few. Making the VIG ETF even more attractive, it yields about 1.57% and just paid out a dividend of just paid a dividend of just over 88 cents per share on December 24. Before that, it paid out a dividend of just over 86 cents per share on October 1. And before that, it paid out a dividend of just over 87 cents per share on July 2.

State Street Blackstone High Income ETF 

With an expense ratio of 0.7%, the State Street Blackstone High Income ETF (HYBL) invests in high-yield corporate bonds, senior loans, and debt tranches of US collateralized loan obligations (CLOs). At the moment, it has 683 holdings, including bonds in Radiology Partners, Allied Universal, JetBlue Airways, and Michaels Cos. It also yields 6.62%. Most recently, it paid out a dividend of just over 16 cents per share on December 23.

As noted by SSGA.com, “The Fund’s exposure to both fixed- and floating-rate assets helps it take advantage of relative value opportunities and provide risk- adjusted returns during periods of heightened volatility.”

Amplify CWP Enhanced Dividend Income ETF 

With a monthly yield of 1.55% and an expense ratio of 0.56%, the Amplify CWP Enhanced Dividend Income ETF (DIVO) holds large-cap companies that have a strong history of dividend growth. It also uses a covered call strategy on individual stocks to offer high total returns.

“DIVO seeks investment results that correspond generally to an existing strategy called the Enhanced Dividend Income Portfolio (EDIP),” as noted by AmplifyETFs.com. That strategy attempts to generate income through dividends and short-term covered calls in an effort to increase cash flow and consistent annual income. In addition, with that strategy, the EDIP holds blue-chip stocks from the S&P 500, the Dow 30, and the S&P 100.