The 5 Safest Dividend ETFs for Boomer Retirement Income in 2026

While many Baby Boomers have enjoyed a long bull market over the past 35 years, there is a point when income becomes more critical than stock appreciation. The reason is simple: those who leave their careers to enjoy a well-deserved retirement lose the benefits of a regular salary and the benefits of their jobs, such as 401(k) matching and company-paid healthcare. In addition, many Baby Boomers take advantage of their retirement years to travel and enjoy the rewards they have worked hard to achieve throughout their lifetime. Choosing investments wisely is imperative, and at 24/7 Wall St., we constantly search for the best ideas for Baby Boomers and retirees. This time, we set out to find the five best and safest dividend exchange-traded funds (ETFs).

We searched our 24/7 Wall St. dividend ETF database for the safest and best funds for Baby Boomers seeking to generate passive income. We found five that make sense and offer the kind of security seniors crave. These dividend-focused ETFs are particularly well-suited for seniors because they address the core financial needs of retirement: generating reliable income while preserving capital. Unlike growth stocks that can be volatile and do not provide regular cash flow, these ETFs deliver quarterly dividend payments that can supplement Social Security and pension income, helping retirees cover living expenses without having to sell shares during market downturns.

Additionally, the extremely low expense ratios (as low as 0.06%) mean more money stays in your pocket rather than going to fees, which becomes increasingly important when you are living off your investments rather than adding to them. Perhaps most importantly, these ETFs provide broad diversification across dozens or even hundreds of dividend-paying companies, eliminating the risk of relying too heavily on any single stock—a crucial safety feature when you are depending on this income to last throughout retirement.

Each of these very well-run ETFs, with experienced managers at some of the top investment firms in the United States, emphasizes low volatility, strong financials, and diversification—all of which are critical for capital preservation in retirement. The yields range from about 2% to 4%, which is substantially higher than the S&P 500’s average of 1.2%. All have low expense ratios, helping you keep more of your returns.

Schwab U.S. Dividend Equity ETF

This top-rated fund has become extremely popular among retirees, as Schwab U.S. Dividend Equity ETF (NYSEArca: SCHD) screens for high-quality dividend stocks with strong financials, including cash flow. Paying a solid 3.82% dividend yield with a very low expense ratio of just 0.06%, it checks all the boxes. The fund tracks the Dow Jones U.S. Dividend 100 Index and is heavily concentrated in defensive sectors like energy, consumer staples, and healthcare, which tend to remain stable during downturns.

To pursue its goal, the fund generally invests in index stocks. The index is designed to measure the performance of high-dividend-yielding U.S. companies that have a record of consistently paying dividends and are selected for fundamental strength relative to peers, as measured by financial ratios. The fund will invest at least 90% of its net assets in these stocks.

Vanguard High Dividend Yield ETF

Known for Vanguard’s characteristically low fees, this ETF has an expense ratio of just 0.06% and stands out for its excellent diversification. Vanguard High Dividend Yield ETF (NYSEArca: VYM) provides broad exposure to dividend-paying stocks with a good balance across sectors, making it a stable choice for retirees seeking income. While it only offers a 2.44% dividend, the safety factor may be very appealing to ultra-conservative seniors looking for dependable income and a little growth to keep up with inflation.

The fund manager employs an indexing investment approach designed to track an index composed of common stocks of companies that generally pay dividends higher than average. The adviser attempts to replicate the target index by investing all, or substantially all, of the fund’s assets in the index’s stocks, holding each stock in approximately the same proportion as its index weighting.

ProShares S&P 500 Dividend Aristocrats ETF

This fund yields 2.14% and has averaged a beta of 0.77, making it a reasonably safe option. ProShares S&P 500 Dividend Aristocrats ETF (NASDAQ: NOBL) invests in stocks that have consistently increased dividends, demonstrating financial strength and reliability. The expense ratio is 0.35%. Investors seeking defensive companies that pay substantial dividends are drawn to the Dividend Aristocrats, and with good reason. The 66 companies that made the cut for the 2026 S&P 500 Dividend Aristocrats list have increased their dividends (not just maintained them) for 25 consecutive years. But the requirements go even further, with the following attributes also mandatory for membership on the aristocrats list:

• Companies must be worth at least $3 billion for each quarterly rebalancing.
• Average daily volume must be at least $5 million transactions for every trailing three-month period at every quarterly rebalancing date.
• Companies must be a member of the S&P 500.

The fund invests in financial instruments that ProShare Advisors believes, in combination, should track the index’s performance. The index measures the performance of S&P 500 companies that have consistently increased dividends for at least 25 years. Under normal circumstances, it invests at least 80% of its total assets in index components or in instruments with similar economic characteristics.

iShares Core Dividend Growth ETF

This ETF is ideal for retirees and income-seeking investors, focusing on dividend growth stocks. These stocks typically come from financially healthy companies that have raised dividends over time, providing resilience during market downturns. With a modest 2.09% yield and a tiny 0.08% expense ratio, iShares Core Dividend Growth ETF (NYSEArca: DGRO) is the perfect fund for ultra-conservative seniors looking for a touch of growth and more income than lousy bank savings rates.

The fund generally invests at least 80% of its assets in the component securities of its underlying index and in investments with economic characteristics substantially identical to those of its underlying index. The underlying index is a subset of the Morningstar U.S. Market Index, a broad market index that represents approximately 97% of the market capitalization of publicly traded U.S. stocks.

State Street SPDR S&P Dividend ETF

This top fund, run by one of the industry’s leading companies, invests in high-yield stocks that have consistently increased dividends for at least 20 consecutive years, providing retirees with reliability. State Street SPDR S&P Dividend ETF (NYSEArca: SDY) screens for stocks with consistent capital growth, holding more than $19 billion in net assets and a competitive 0.35% expense ratio. Central holdings are in industrials, utilities, and financial sectors. The fund currently pays a 2.61% dividend to investors.

The fund generally invests substantially all, but at least 80%, of its total assets in the securities comprising the index. The index is designed to measure the performance of the highest-dividend-yielding S&P Composite 1500 Index constituents that have followed a managed-dividends policy of consistently increasing dividends for at least 20 consecutive years.

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