10 Best Performing Dividend ETFs In 2024

8. Vanguard High Dividend Yield Index Fund ETF Shares (NYSE:VYM)

YTD Share Price Performance as of December 30: 14.48%

Vanguard High Dividend Yield Index Fund ETF Shares (NYSE:VYM) seeks to mirror the FTSE High Dividend Yield Index, which tracks US companies committed to paying higher-than-average dividends consistently. The ETF is designed for investors with long-term objectives who can tolerate market volatility. As of February 27, 2024, the Vanguard High Dividend Yield Index Fund ETF Shares (NYSE:VYM) has an expense ratio of 0.08%. Launched on February 7, 2019, the fund manages total assets of $76.5 billion as of November 30, 2024, with a portfolio comprising 537 holdings. It is one of the best performing ETFs to invest in.

Broadcom Inc. (NASDAQ:AVGO) is the top holding of Vanguard High Dividend Yield Index Fund ETF Shares (NYSE:VYM). Based in Palo Alto, California, Broadcom Inc. (NASDAQ:AVGO) has been around since 1961 and is a big player in the tech world. The company creates and supplies semiconductor devices and software used globally. Broadcom operates in two main segments – Semiconductor Solutions and Infrastructure Software. Its products include system-on-chips (SoCs) for set-top boxes and wireless networks, Ethernet solutions, RF modules, and even industrial components like motion control encoders and optocouplers.

Broadcom Inc. (NASDAQ:AVGO) is no longer overshadowed by Nvidia and is now emerging as a powerhouse with significant growth potential. The Broadcom surge is fueled by the company’s stellar fourth quarter performance, with revenue jumping 51% year-over-year to $14.05 billion, driven by AI solutions and the integration of VMware. Full-year revenue hit a record $51.6 billion, with infrastructure software contributing $21.5 billion. Broadcom Inc. (NASDAQ:AVGO) also returned to profitability, reporting $6.97 billion in adjusted net income for Q4.

AI chips are poised to be Broadcom’s primary growth driver. The company has secured a design contract for Alphabet’s next-generation tensor processing unit (TPU) and counts Meta, ByteDance, OpenAI, and Apple among its key customers. Broadcom Inc. (NASDAQ:AVGO) plans to deploy one million custom AI chips by 2027, targeting a market opportunity of $60–90 billion that year.

On December 12, Broadcom Inc. (NASDAQ:AVGO) declared a $0.59 per share quarterly dividend, an 11.3% increase from its prior dividend of $0.53. The dividend is payable on December 31, to shareholders on record as of December 23.

Broadcom Inc. (NASDAQ:AVGO) was part of 128 hedge fund portfolios at the end of Q3 2024, compared to 130 in the prior quarter. Ken Fisher’s Fisher Asset Management is the leading stakeholder of the company, with 23.4 million shares worth $4 billion.