In this article, we discuss 10 Best Performing Dividend ETFs In 2024.
By the end of 2023, the global ETF market had reached $11.1 trillion in assets under management (AUM) and expanded to include 9,149 funds. This growth was driven by several milestones and the diversification of ETF offerings, which now cover equity, fixed income, active management, and alternative strategies. Despite unpredictable factors such as the rise of AI or policy changes, ETFs continue to be a vital investment tool. According to State Street Global Advisors, although only 45% of individual investors in the US use ETFs, nearly 70% of financial advisors and 67% of institutional investors recommend or use them frequently. However, ETFs still make up only 11.25% of the total global investable assets, suggesting there is significant potential for further growth.
Interest in ETFs is rising, particularly among retail investors, with 63% of US investors planning to purchase ETFs in 2024, a sharp increase from 37% during 2022. Active ETFs are experiencing considerable growth, with global inflows hitting a record $166 billion in 2023 and continuing to rise in 2024. Much of this growth is driven by fixed income and alternative investments, while AI-related ETFs, especially in robotics and semiconductors, are attracting large amounts of investment. These trends reflect the growing demand for ETFs as investors seek more flexible and efficient ways to respond to market changes.
A Reuters report from October 2024 highlighted that US ETFs focused on dividend-paying stocks have experienced a significant increase in inflows since the Federal Reserve began its rate-cutting cycle the prior month. In September, 135 US dividend ETFs tracked by Morningstar saw $3.05 billion in inflows, far higher than the average $424 million per month in the first eight months of 2024. However, this trend may slow as US Treasury yields have risen recently, with 10-year Treasury yields hitting a two-month high following strong employment data that suggests the economy is resilient and may not need further large rate cuts.
Dividend ETFs tend to offer stable payouts and potential for growth, addressing challenges regarding unpredictable yields and limited principal growth. However, high-dividend ETFs vary in stability. Some high yields come from struggling companies with weak fundamentals. Riskier ETFs focus on stocks with declining conditions, leading to volatility and potential dividend cuts. Hence, investors should prefer dividend ETFs that manage exposure to unstable companies.
Our Methodology
We curated our list of the best dividend ETFs by choosing consensus picks from multiple credible websites. We have mentioned the year-to-date (YTD) share price performance of each ETF as of December 30, 2024, ranking the list in ascending order of the share price performance. We have also discussed the top holdings of the ETFs to offer better insight to potential investors.
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10. WisdomTree U.S. MidCap Dividend Fund (NYSE:DON)
YTD Share Price Performance as of December 30: 10.47%
WisdomTree U.S. MidCap Dividend Fund (NYSE:DON) aims to track the performance of dividend-paying mid-cap companies in the US equity market. It provides exposure to core dividend-focused active and passive strategies. As of December 27, 2024, the fund has an expense ratio of 0.38%, total assets of $3.7 billion, and a 30-day SEC yield of 2.28%. The fund was launched on June 16, 2006. DON is one of the best performing ETFs to watch.
Evergy, Inc. (NASDAQ:EVRG) occupies the largest position in WisdomTree U.S. MidCap Dividend Fund (NYSE:DON)’s portfolio. Evergy, Inc. (NASDAQ:EVRG) carries out the generation, transmission, distribution, and sale of electricity across the United States. It produces electricity from coal, landfill gas, uranium, natural gas, oil, solar, wind, and other renewables.
In the third quarter, Evergy, Inc. (NASDAQ:EVRG) reported adjusted earnings of $2.02 per share, up from $1.88 per share last year, driven by demand growth, new retail sales, and FERC investments, despite cooler weather and higher depreciation expenses. Year-to-date adjusted earnings stand at $3.46 per share, compared to $3.27 last year, prompting the company to reaffirm its 2024 adjusted EPS guidance of $3.73 to $3.93 per share. Evergy, Inc. (NASDAQ:EVRG) also announced 2025 adjusted EPS guidance of $3.92 to $4.12 per share, with a long-term growth target of 4% to 6% through 2029. The company also declared a 4% increase in its quarterly dividend to $2.67 per share, aligning with its growth outlook.
According to Insider Monkey’s third quarter database, Evergy, Inc. (NASDAQ:EVRG) was part of 30 hedge fund portfolios, compared to 36 in the last quarter. Zimmer Partners is the largest stakeholder of the company, with a position worth $258 million.
9. T. Rowe Price Dividend Growth ETF (NYSE:TDVG)
YTD Share Price Performance as of December 30: 13.55%
T. Rowe Price Dividend Growth ETF (NYSE:TDVG) allocates at least 80% of its assets to stocks with a history of paying or the potential to pay dividends, including futures with similar characteristics. The fund’s strategy views consistent dividend growth as a sign of financial stability and long-term growth. As of December 27, 2024, the ETF manages $754.9 million in net assets with a 0.50% expense ratio. It is one of the best performing ETFs for an income portfolio.
Microsoft Corporation (NASDAQ:MSFT) is the largest holding of T. Rowe Price Dividend Growth ETF (NYSE:TDVG). Microsoft Corporation (NASDAQ:MSFT) delivered strong Q3 results, with revenue climbing to $65.6 billion, a 16% increase led by a 20% growth in its Intelligent Cloud segment. Azure revenue surged by 34%, driven by AI services, although growth is anticipated to slow slightly in FY25 Q2 due to capacity limits and the absence of one-time Q1 revenue. The company’s AI division is set to achieve a $10 billion annual revenue run rate, making it the fastest-growing segment in Microsoft’s history.
As a leader in enterprise cloud, Microsoft Corporation (NASDAQ:MSFT) is driving digital transformation with cloud migration incentives, hybrid solutions like Azure Stack, and support for clients with Enterprise License Agreements. With free cash flow margins projected to hit 35–40% by 2028, Microsoft Corporation (NASDAQ:MSFT)’s strong growth in AI and cloud solidifies its role as a top enterprise investment, despite its premium valuation.
On December 4, Microsoft Corporation (NASDAQ:MSFT) declared a quarterly dividend of $0.83 per share. The dividend is to be distributed on March 13, 2025, to shareholders on record as of February 20.
Microsoft Corporation (NASDAQ:MSFT) remains one of the most popular stocks among Wall Street hedge funds. As of Q3 2024, 279 hedge funds were bullish on Microsoft, the same as the prior quarter.
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.
7. iShares Core Dividend Growth ETF (NYSE:DGRO)
YTD Share Price Performance as of December 30: 14.67%
iShares Core Dividend Growth ETF (NYSE:DGRO) aims to track US stocks with a history of consistent dividend growth, providing low-cost exposure to companies across different industries. As of December 27, 2024, the ETF manages $30.2 billion in net assets and holds 406 stocks, with an expense ratio of 0.08%. Established on June 10, 2014, it tracks the Morningstar US Dividend Growth Index. As of November 30, 2024, the ETF offers a 30-day dividend yield of 2.19%. DGRO ranks 7th on our list of the best performing ETFs.
Apple Inc. (NASDAQ:AAPL) is one of the top holdings of iShares Core Dividend Growth ETF (NYSE:DGRO). Apple Inc. (NASDAQ:AAPL) is in early talks with Tencent and ByteDance to integrate their AI models into products for the Chinese market. This move reflects Apple Inc. (NASDAQ:AAPL)’s strategy to comply with local regulations while partnering with key players in China’s AI sector. This approach allows Apple to tap into the AI market without deeper involvement in China’s critical infrastructure, protecting its position amid ongoing US-China trade tensions.
Apple Inc. (NASDAQ:AAPL) plans to develop its own AI server chips by 2026, moving away from reliance on companies like Google and Amazon. The new chip, Baltra, will focus on inferencing for large language models and be manufactured using Taiwan Semiconductor’s 3nm technology. This shift follows Nvidia’s market dominance and mirrors Apple’s previous move away from Intel by creating its own chips for Mac laptops.
According to Insider Monkey’s third quarter database, Apple Inc. (NASDAQ:AAPL) was held by 158 hedge funds, down from 184 funds in the last quarter. Warren Buffett’s Berkshire Hathaway is the biggest position holder in the company, with 300 million shares valued at nearly $70 billion.
6. FlexShares Quality Dividend Index Fund (NYSE:QDF)
YTD Share Price Performance as of December 30: 16.28%
FlexShares Quality Dividend Index Fund (NYSE:QDF) is one of the best performing ETFs to monitor. FlexShares Quality Dividend Index Fund (NYSE:QDF) aims to match the performance, in terms of price and yield, of the Northern Trust Quality Dividend Index, before fees and expenses. Established on December 14, 2012, the fund has an expense ratio of 0.37% and total assets of $1.84 billion. It holds 148 stocks and offers a distribution yield of 2.69%.
NVIDIA Corporation (NASDAQ:NVDA) is one of the top holdings of FlexShares Quality Dividend Index Fund (NYSE:QDF). Retail investors poured nearly $30 billion in net investments in NVIDIA Corporation (NASDAQ:NVDA), making it the most-bought stock by this group. Nvidia has received almost double the net inflows compared to the SPDR S&P 500 ETF Trust (SPY) and is on track to surpass Tesla, which was the top retail investor pick in 2023.
As of December 2024, Morgan Stanley analyst Joseph Moore remains confident in NVIDIA Corporation (NASDAQ:NVDA)’s long-term prospects, despite a recent pullback in its stock, viewing it as an opportunity. He believes Nvidia’s Blackwell chip, set to dominate the AI market in 2025, will drive significant growth. Moore expects Nvidia to continue gaining market share with this next-generation GPU, predicting the stock could surpass $150. While NVIDIA Corporation (NASDAQ:NVDA) faces export restrictions in China that could impact sales, Moore expects the company to remain resilient by targeting other markets.
Insider Monkey’s Q3 database indicates that 193 hedge funds were bullish on NVIDIA Corporation (NASDAQ:NVDA), up from 179 funds in the preceding quarter. Ken Fisher’s Fisher Asset Management is one of the leading position holders of the company, with a stake worth nearly $12 billion.
5. Vanguard Dividend Appreciation Index Fund ETF Shares (NYSE:VIG)
YTD Share Price Performance as of December 30: 16.58%
Vanguard Dividend Appreciation Index Fund ETF Shares (NYSE:VIG) tracks the S&P US Dividend Growers Index, using a passive, full-replication strategy. It focuses on large-cap stocks with a history of consistent dividend growth. Launched on April 21, 2006, the fund has a 0.06% expense ratio and net assets of $106 billion as of November 30, 2024. The ETF holds 338 stocks and offers a 1.60% 30-day SEC yield. It is one of the best performing ETFs to invest in.
JPMorgan Chase & Co. (NYSE:JPM) is one of the biggest holdings of Vanguard Dividend Appreciation Index Fund ETF Shares (NYSE:VIG). It is a global financial services company offering a wide range of products through three main segments – Consumer & Community Banking, Commercial & Investment Bank, and Asset & Wealth Management.
JPMorgan Chase & Co. (NYSE:JPM)’s stock has performed well over the past decade and is approaching its highest levels, with the possibility of becoming the first bank to reach a $1 trillion market value. While some analysts worry that JPM’s size may limit future growth, the company maintains a strong position due to its brand strength, technological advancements, and leadership in deposits, totaling $2.4 trillion in Q3 2024. Its impressive CET1 ratio further strengthens its ability to weather financial challenges. Despite competition from smaller banks and threats like crypto, JPMorgan Chase & Co. (NYSE:JPM)’s strong management, consistent dividends, and share repurchase program ensure attractive returns, making it a reliable investment.
JPMorgan Chase & Co. (NYSE:JPM) is one of the most popular financial services stocks among hedge funds. 105 Wall Street funds were bullish on JPM at the end of Q3 2024, compared to 111 funds in the earlier quarter.
4. WisdomTree U.S. Quality Dividend Growth Fund (NASDAQ:DGRW)
YTD Share Price Performance as of December 30: 16.64%
WisdomTree U.S. Quality Dividend Growth Fund (NASDAQ:DGRW) focuses on US large-cap companies with strong dividend growth and quality characteristics. Designed as a complement to high-yield or large-cap strategies, WisdomTree U.S. Quality Dividend Growth Fund (NASDAQ:DGRW) offers an expense ratio of 0.28% and holds net assets of $14.8 billion as of December 27, 2024. The fund, established on May 22, 2013, has a 30-day SEC yield of 1.50%. It is one of the best performing ETFs to consider for a dividend portfolio.
US energy giant Exxon Mobil Corporation (NYSE:XOM) is one of the largest holdings of WisdomTree U.S. Quality Dividend Growth Fund (NASDAQ:DGRW). Exxon Mobil Corporation (NYSE:XOM)’s acquisition of Pioneer Natural Resources in May 2024 has already delivered results, helping counteract a 17% drop in oil prices during the third quarter and increasing net production by 5% QoQ, with the highest liquids output in over 40 years. This $59.5 billion all-stock deal is Exxon’s largest since merging with Mobil in 1998. Exxon Mobil Corporation (NYSE:XOM) has also delivered exceptional shareholder returns over the past three years, outpacing its competitors. The company recently increased its dividend by 4.2% to $0.99 per share, offering a 3.39% yield. With reduced dependence on high oil prices and consistent performance, Exxon remains a compelling investment option.
According to Insider Monkey’s third quarter database, 86 hedge funds were long Exxon Mobil Corporation (NYSE:XOM), compared to 92 funds in the prior quarter.
3. WisdomTree U.S. LargeCap Dividend Fund (NYSE:DLN)
YTD Share Price Performance as of December 30: 17.63%
WisdomTree U.S. LargeCap Dividend Fund (NYSE:DLN) targets dividend-paying large-cap companies in the US equity market, offering core exposure to this segment. The ETF has an expense ratio of 0.28%, total assets of $4.5 billion, and a 30-day SEC yield of 2.04% as of December 27, 2024. Established on June 16, 2006, it provides a reliable option for dividend-focused investors, which places DLN 3rd on our list of the best performing ETFs.
Pharma powerhouse Johnson & Johnson (NYSE:JNJ) is one of the biggest holdings of WisdomTree U.S. LargeCap Dividend Fund (NYSE:DLN). Johnson & Johnson (NYSE:JNJ) has been entangled in lawsuits over its talc-based baby powder since 1999. These cases, which claim the product causes cancer, have resulted in ongoing legal challenges. A pivotal ruling on the company’s proposed $8 billion settlement is expected from a Houston judge in January 2025. J&J is addressing talc-related lawsuits through a “Texas two-step” strategy, transferring liability to a subsidiary that declares bankruptcy, capping settlement costs at $8 billion. With 83% of claimants supporting the deal, it is likely to gain court approval. If finalized, the settlement could end years of legal battles, boost J&J’s stagnant stock, and refocus the company on growth.
Johnson & Johnson (NYSE:JNJ) delivered strong Q3 results with 6.3% operational sales growth, driven by innovation and high-growth markets. The company achieved FDA approvals, launched new products, and raised its earnings guidance for the third consecutive quarter. Q3 sales reached $22.5 billion, with a net income of $2.7 billion and a quarterly dividend of $1.24 per share.
According to Insider Monkey’s Q3 database, Johnson & Johnson (NYSE:JNJ) was held by 81 hedge funds, up from 80 the previous quarter.
2. Fidelity High Dividend ETF (NYSE:FDVV)
YTD Share Price Performance as of December 30: 19.03%
Fidelity High Dividend ETF (NYSE:FDVV) aims to track the performance of the Fidelity High Dividend Index, which includes large- and mid-cap dividend-paying companies expected to maintain and grow their dividends. The fund was established on September 12, 2016, and the portfolio consists of 107 stocks, with assets totaling $3.6 billion as of September 30, 2024. The fund’s 30-day SEC Yield is 2.87%. FDVV is one of the best performing ETFs to monitor.
The Procter & Gamble Company (NYSE:PG) is one of the primary holdings of Fidelity High Dividend ETF (NYSE:FDVV). The Procter & Gamble Company (NYSE:PG) provides branded consumer packaged goods worldwide across five segments – Beauty, Grooming, Health Care, Fabric & Home Care, and Baby, Feminine & Family Care.
The Procter & Gamble Company (NYSE:PG) reported lower-than-expected revenue in the first quarter of fiscal 2025, with organic sales in Greater China dropping 15% due to decreased demand for products like shampoo and diapers. Although the company’s overall volume remained flat, its organic revenue grew 2% due to higher prices. In the US, P&G saw volume growth in most categories, but Greater China struggled, particularly in hair and oral care. On the positive side, grooming and fabric & home care segments showed growth. P&G’s net income fell to $3.96 billion, and it maintained its fiscal 2025 forecast, expecting 2%-4% revenue growth and core earnings per share between $6.91 and $7.05.
Among the hedge funds monitored by Insider Monkey, 68 funds were bullish on The Procter & Gamble Company (NYSE:PG) at the end of Q3, up from 64 in the previous quarter.
1. Capital Group Dividend Value ETF (NYSE:CGDV)
YTD Share Price Performance as of December 30: 20.14%
Capital Group Dividend Value ETF (NYSE:CGDV) aims to generate consistent income that surpasses the average yield of the S&P 500 by investing in dividend-paying companies or those with the potential to pay dividends. As of December 27, 2024, the ETF manages nearly $12.4 billion in assets, with a 0.33% expense ratio and a 1.74% 30-day SEC yield. Launched on February 22, 2022, Capital Group Dividend Value ETF (NYSE:CGDV) holds 52 stocks in its portfolio as of November 2024. CGDV ranks 1st on our list of the best performing ETFs.
Carrier Global Corporation (NYSE:CARR) is one of the top stocks in the Capital Group Dividend Value ETF (NYSE:CGDV)’s portfolio. Carrier Global Corporation (NYSE:CARR) provides HVAC, refrigeration, fire, security, and building automation technologies globally. It operates in three segments – HVAC, offering heating, cooling, and ventilation products and services; Refrigeration, providing transport refrigeration and commercial cooling solutions; and Fire & Security, offering fire detection, suppression, and security technologies.
In Q3 2024, Carrier Global Corporation (NYSE:CARR) reported a 20% increase in organic orders, positioning the company for continued growth in 2025. Despite challenges in residential and light commercial HVAC in Europe and China, the company achieved 4% organic sales growth. Strong aftermarket performance is set to deliver double-digit growth for the fourth consecutive year. CARR repurchased $400 million in shares in Q3 and plans to repurchase $5 billion in shares by the end of next year. Carrier Global’s adjusted EPS from continuing operations was $0.77, up 3% year-over-year, driven by organic growth, pricing, and productivity, partially offset by higher interest expenses, tax rates, and share count.
Insider Monkey’s Q3 database indicates that 45 hedge funds were bullish on Carrier Global Corporation (NYSE:CARR), the same as the prior quarter. Fisher Asset Management is the leading stakeholder of the company, with a position worth $1.15 billion.
Overall, Capital Group Dividend Value ETF (NYSE:CGDV) ranks first on our list of the best performing dividend ETFs. While we acknowledge the potential of CGDV to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CGDV but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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