Top Dividend ETFs with Over 7% Yields Offering Big Returns

Bassyonni

ago 2 hours

Dividend exchange-traded funds (ETFs) are essential for investors looking to generate income. These funds mainly consist of stocks that pay dividends and trade on various exchanges. As demand increases, some ETFs stand out for their high yields. Below are three noteworthy options offering dividends over 7%.

Top Dividend ETFs with Over 7% Yields

Global X SuperDividend ETF (SDIV)
iShares Emerging Markets Dividend ETF (DVYE)
Global X SuperDividend US ETF (DIV)

Global X SuperDividend ETF (SDIV)

The Global X SuperDividend ETF aims to deliver strong income through high-yielding stocks worldwide. Tracking the Stuttgart Solactive AG Global SuperDividend (USD) Index, SDIV pays a monthly dividend of $0.19 per share, leading to an impressive yield of 9.76%. The ETF has an expense ratio of 0.58% and manages total assets of $1.01 billion, with 100 different stocks in its portfolio. Notably, the top 10 holdings constitute 16.91% of the fund.

iShares Emerging Markets Dividend ETF (DVYE)

The iShares Emerging Markets Dividend ETF focuses on stocks from emerging economies, utilizing a dividend-weighted approach. By tracking the Dow Jones Emerging Markets Select Dividend Index, DVYE pays a quarterly dividend of $0.551 per share, resulting in a yield of 9.14%. This ETF maintains an expense ratio of 0.50% and manages assets totaling approximately $981.63 million, with 96 holdings across various sectors.

Global X SuperDividend US ETF (DIV)

The Global X SuperDividend US ETF offers exposure to a diverse range of high-dividend-paying U.S. stocks. Following the Indxx SuperDividend U.S. Low Volatility Index allows DIV to focus on steady income. This ETF pays a monthly dividend of $0.108 per share, which corresponds to a yield of 7.52%. With assets of $624.09 million, DIV boasts an expense ratio of 0.45% and includes a total of 51 holdings.

Conclusion

Investing in dividend ETFs can provide significant returns, especially with yields exceeding 7%. The Global X SuperDividend ETF, iShares Emerging Markets Dividend ETF, and Global X SuperDividend US ETF each offer distinct advantages that cater to income-focused investors. By considering factors like yield, expense ratios, and fund holdings, investors can make informed decisions that align with their financial goals.