5 Best Dividend ETFs To Buy

In this article, we discuss 5 best dividend ETFs to buy. If you want to read our discussion on dividend-paying companies, head directly to 11 Best Dividend ETFs To Buy. 

5. WisdomTree U.S. LargeCap Dividend Fund (NYSE:DLN)

5-year Share Price Performance as of March 15: 49.78%

WisdomTree U.S. LargeCap Dividend Fund (NYSE:DLN) aims to mirror the performance of dividend-paying large-cap companies in the US equity market. As of March 14, 2024, the ETF had net assets totaling nearly $3.9 billion with an expense ratio of 0.28%. WisdomTree U.S. LargeCap Dividend Fund (NYSE:DLN) offers a distribution yield of 1.70% and a SEC 30-day yield of 2.15% as of March 14, 2024. It is one of the best dividend ETFs to buy. 

JPMorgan Chase & Co. (NYSE:JPM) is one of the top holdings of WisdomTree U.S. LargeCap Dividend Fund (NYSE:DLN). On February 6, JPMorgan Chase & Co. (NYSE:JPM) announced multibillion-dollar plans to expand its branch network over the next three years. This includes opening more than 500 branches, renovating about 1,700 locations, and hiring 3,500 additional staff members. The expansion aims to reach new markets, particularly focusing on low-income and rural communities. 

According to Insider Monkey’s fourth quarter database, 103 hedge funds were bullish on JPMorgan Chase & Co. (NYSE:JPM), compared to 109 funds in the prior quarter. 

Carillon Eagle Growth & Income Fund stated the following regarding JPMorgan Chase & Co. (NYSE:JPM) in its fourth quarter 2023 investor letter:

“PNC Financial and JPMorgan Chase & Co. (NYSE:JPM) performed well due to more benign inflation data, which the market likely interpreted as a sign that a recession is now less likely to occur. Recall that historically speaking, banks are hyper-cyclical stocks and typically will trade lower if investors foresee a recession, because recessions tend to trigger loan losses.”

4. Schwab U.S. Dividend Equity ETF (NYSE:SCHD)

5-year Share Price Performance as of March 15: 50.81%

Schwab U.S. Dividend Equity ETF (NYSE:SCHD) aims to closely track the total return of the Dow Jones U.S. Dividend 100 Index before fees and expenses. It invests in stocks selected for their fundamental strength compared to peers, based on financial ratios. Established on October 20, 2011, Schwab U.S. Dividend Equity ETF (NYSE:SCHD) had net assets of $64.5 billion as of March 14, 2024, with a net expense ratio of 0.060%. The ETF offers a distribution yield of 3.41% and a 30-day SEC yield of 3.46%. Schwab U.S. Dividend Equity ETF (NYSE:SCHD) is one of the best dividend ETFs to invest in. 

AbbVie Inc. (NYSE:ABBV) is one of the top holdings of Schwab U.S. Dividend Equity ETF (NYSE:SCHD). The company discovers, develops, and sells pharmaceuticals worldwide. On February 15, AbbVie Inc. (NYSE:ABBV) declared a quarterly dividend of $1.55 per share, in line with previous. The dividend is payable on May 15, to shareholders on record as of April 15. 

According to Insider Monkey’s fourth quarter database, 76 hedge funds were long AbbVie Inc. (NYSE:ABBV), compared to 73 funds in the prior quarter. Paul Marshall and Ian Wace’s Marshall Wace LLP is the largest stakeholder of the company, with 3.17 million shares worth $491.7 million. 

Carillon Eagle Mid Cap Growth Fund made the following comment about AbbVie Inc. (NYSE:ABBV) in its Q3 2023 investor letter:

“AbbVie Inc. (NYSE:ABBV) reported strong, broad-based second-quarter performance that exceeded analysts’ expectations. The company’s raised guidance was a nice recovery after its mildly disappointing first-quarter report.”

3. iShares Core Dividend Growth ETF (NYSE:DGRO)

5-year Share Price Performance as of March 15: 54.25%

iShares Core Dividend Growth ETF (NYSE:DGRO) aims to mirror the performance of the Morningstar US Dividend Growth Index, which comprises US equities with a track record of consistently increasing dividends. iShares Core Dividend Growth ETF (NYSE:DGRO) had net assets of $26.6 billion as of March 14, 2024, with an expense ratio of 0.08% and it holds a portfolio of 420 stocks. As of February 29, 2024, the fund’s 30-day SEC yield stands at 2.36%. It is one of the best dividend ETFs to invest in. 

Exxon Mobil Corporation (NYSE:XOM) is a prominent holding of the iShares Core Dividend Growth ETF (NYSE:DGRO). On February 2, Exxon Mobil Corporation (NYSE:XOM) declared a quarterly dividend of $0.95 per share, in line with previous. The dividend was paid on March 11. 

According to Insider Monkey’s fourth quarter database, 85 hedge funds were long Exxon Mobil Corporation (NYSE:XOM), compared to 79 funds in the last quarter. Jean-Marie Eveillard’s First Eagle Investment Management is the largest stakeholder of the company, with 13.2 million shares worth $1.3 billion. 

In its Q2 2022 investor letter, First Eagle Investments, an asset management firm, highlighted a few stocks and Exxon Mobil Corporation (NYSE:XOM) was one of them. Here is what the fund said:

“Integrated oil and gas giant Exxon Mobil Corporation (NYSE:XOM) performed well in the second quarter as continued high prices for energy products supported the stock. As the largest refiner in the US, the company has benefitted from wide “crack spreads,” or the margin between the cost of crude oil and the petroleum products extracted from it. Exxon continues to invest in refining capacity in the US, which industry wide has been in steady decline since 2019. We are pleased that Exxon has been using its strong cash flows to reduce debt and to return cash to shareholders through dividends and stock repurchases.”

2. Vanguard Dividend Appreciation Index Fund ETF Shares (NYSE:VIG)

5-year Share Price Performance as of March 15: 65.14%

Vanguard Dividend Appreciation Index Fund ETF Shares (NYSE:VIG) aims to replicate the performance of the S&P U.S. Dividend Growers Index through passive management using a full-replication approach. The fund primarily invests in large-cap equities, focusing on stocks with a history of increasing dividends annually. The ETF offers an expense ratio of 0.06% and a 30-day SEC yield of 1.73%. As of February 29, 2024, Vanguard Dividend Appreciation Index Fund ETF Shares (NYSE:VIG)’s portfolio includes 315 stocks and its net assets amount to $91.4 billion. Vanguard Dividend Appreciation Index Fund ETF Shares (NYSE:VIG) is one of the best dividend ETFs to buy. 

Vanguard Dividend Appreciation Index Fund ETF Shares (NYSE:VIG)’s top holdings include UnitedHealth Group Incorporated (NYSE:UNH), which is a diversified healthcare company in the United States. On February 23, UnitedHealth declared a $1.88 per share quarterly dividend, in line with previous. The dividend is payable on March 19, to shareholders on record as of March 11. 

According to Insider Monkey’s fourth quarter database, 113 hedge funds were bullish on UnitedHealth Group Incorporated (NYSE:UNH), compared to 104 funds in the last quarter. Rajiv Jain’s GQG Partners is the largest stakeholder of the company, with 3.4 million shares worth $1.80 billion. 

Wedgewood Partners stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its fourth quarter 2023 investor letter:

“UnitedHealth Group Incorporated (NYSE:UNH) contributed less to portfolio performance than the majority of our holdings during the quarter. The Company reported double-digit revenue, operating earnings and earnings per share growth during their third quarter. The Company has been able to adjust pricing in its health care segment to keep up with medical cost inflation while working with its Optum units to deliver more value-based care that replaces the traditional fee for service health care model. Value-based care is a sensible, long-term growth opportunity for the Company to pursue and also differentiates it from the vast majority of healthcare providers, particularly as it relates to Medicare patients. For example, the Company’s value-based care programs provide more preventative care opportunities and home-based care visits for patients which helps save the U.S. healthcare system billions in unnecessary spending while also providing patients with better outcomes, as diseases and behaviors are caught or corrected at earlier stages. The Company has invested in several core assets over many years to execute this value-based strategy and it will become the standard of care as the proportion of people in the U.S. with healthcare insurance coverage continues to reach new highs.”

1. WisdomTree U.S. Quality Dividend Growth Fund (NASDAQ:DGRW)

5-year Share Price Performance as of March 15: 75.28%

WisdomTree U.S. Quality Dividend Growth Fund (NASDAQ:DGRW) aims to mirror the performance of dividend-paying large-cap companies with growth characteristics in the US equity market. As of March 14, 2024, the fund has net assets totaling $12.4 billion with an expense ratio of 0.28%. It offers a distribution yield of 1.28% and a 30-day SEC yield of 1.57%. WisdomTree U.S. Quality Dividend Growth Fund (NASDAQ:DGRW) is one of the best dividend ETFs to invest in. 

Johnson & Johnson (NYSE:JNJ) is among the top holdings of WisdomTree U.S. Quality Dividend Growth Fund (NASDAQ:DGRW). On March 7, Johnson & Johnson (NYSE:JNJ) finalized its acquisition of Ambrx Biopharma, a developer specializing in next-generation antibody drug conjugates (ADCs). The acquisition, announced in early January, was an all-cash merger valued at approximately $2 billion. 

According to Insider Monkey’s fourth quarter database, 81 hedge funds were bullish on Johnson & Johnson (NYSE:JNJ), compared to 84 funds in the last quarter. 

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