Reaching retirement age is a genuine milestone, but counting on the U.S. government to cover your living expenses is a shaky plan. The Social Security full retirement age is 66 for anyone born between 1943 and 1954. It rises gradually for those born between 1955 and 1960, and anyone born in 1960 or later must wait until 67 to collect full benefits.
Millennials face an even longer wait. Social Security trust fund projections suggest the program’s reserves could be depleted well before they reach their peak earning years, and many analysts expect the full retirement age for younger workers to climb toward 70 or beyond.
Retirees need dependable income, and exchange-traded funds built around dividends are one of the most effective tools available. Unlike open-end mutual funds, ETFs trade on the major exchanges throughout the day, just like stocks. They hold diversified baskets of equities, bonds, currencies, futures contracts, and commodities, giving investors broad exposure with a single purchase. The ability to sell at any point during market hours provides flexibility that fixed-income instruments cannot match.
Eight funds cleared our screens, each meeting these criteria:
- High dividend payout
- Trades at or at a discount to net asset value
- Managed by major Wall Street firms
- Reasonable expense ratio
All eight make sense for retirees seeking dependable distributions, with many paying monthly rather than quarterly.
1. JPMorgan Equity Premium Income ETF
JPMorgan Equity Premium Income ETF (NYSEARCA:JEPI)
Launched in May 2020, JEPI has grown into one of the largest actively managed ETFs in the country, with assets under management near $45 billion. The fund is run by a dedicated team of portfolio managers at JPMorgan and pursues its income objective through two complementary mechanics:
- An actively managed equity portfolio anchored in low-volatility stocks drawn from the S&P 500 Total Return Index.
- Equity-linked notes (ELNs) that sell call options against S&P 500 exposure, generating additional premium income each month.
Dividend yield: 8.21% paid monthly
Expense ratio: 0.35%
2. JPMorgan Nasdaq Equity Premium Income ETF
JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:JEPQ)
JEPQ is JEPI’s sister fund, built around the Nasdaq-100 rather than the S&P 500. By systematically selling covered calls against the Nasdaq-100, the fund harnesses the higher implied volatility of technology stocks to harvest richer option premiums. With assets now above $40 billion, it has attracted enormous investor interest in a short period. Retirees who want meaningful technology exposure without bearing the full downside of holding the index outright will find this structure compelling. The trailing 12-month yield has climbed to approximately 10.8%, reflecting recent market conditions that have generated elevated volatility premiums in the tech sector.
Dividend yield: 10.8% paid monthly
Expense ratio: 0.35%
3. Alerian MLP ETF
Alerian MLP ETF (NYSEARCA:AMLP)
For retirees seeking energy sector income, AMLP invests at least 90% of its total assets in securities that make up its underlying index. That index targets energy infrastructure master limited partnerships (MLPs), companies whose cash flows come primarily from transporting, storing, and processing energy commodities such as natural gas and crude oil. Because pipeline revenues are largely fee-based and tied to throughput volumes rather than commodity prices, the underlying business model is relatively stable. One practical advantage: while individual MLP stocks send investors a K-1 tax form each year, AMLP issues a standard 1099, eliminating a common tax headache.
Dividend yield: 7.56% paid quarterly
Expense ratio: 0.85%
4. Global X U.S. Preferred ETF
Global X U.S. Preferred ETF (NYSEARCA:PFFD)
Preferred shares sit in the capital structure between common equity and bonds, and PFFD assembles them into a single low-cost package. The fund invests at least 80% of its total assets in its underlying index of U.S.-domiciled preferred securities, targeting broad representation across banks, utilities, and financial companies. Because preferred dividends are typically fixed, the fund offers a more bond-like income stream than a traditional equity ETF, with monthly distributions making cash flow management straightforward for retirees.
Dividend yield: 6.52% paid monthly
Expense ratio: 0.23%
5. Global X SuperDividend REIT ETF
Global X SuperDividend REIT ETF (NASDAQ:SRET)
Real estate investment trusts are required by law to distribute at least 90% of their taxable income to shareholders, making them natural income generators. SRET concentrates that quality by targeting the highest-yielding REITs globally, investing at least 80% of its total assets in its underlying index. The inclusion of global REITs, accessed through American Depositary Receipts and Global Depositary Receipts, broadens the opportunity set beyond U.S. borders while keeping monthly distributions on a reliable schedule.
Dividend yield: 8.08% paid monthly
Expense ratio: 0.59%
6. iShares National Muni Bond ETF
iShares National Muni Bond ETF (NYSEARCA:MUB)
MUB carries the lowest headline yield on this list, but retirees in higher tax brackets should consider the after-tax math carefully. The fund’s underlying index holds municipal bonds whose interest is exempt from federal income tax and not subject to the alternative minimum tax. For a retiree in the 32% or higher federal bracket, the tax-equivalent yield on a 3.17% muni fund can exceed what a comparable taxable bond fund offers. Monthly distributions add steady income to a portfolio without generating a federal tax bill.
Dividend yield: 3.17% paid monthly
Expense ratio: 0.07%
7. Vanguard High Dividend Yield ETF
Vanguard High Dividend Yield ETF (NYSEARCA:VYM)
VYM tracks the FTSE High Dividend Yield Index, investing substantially all of its assets in the common stocks of companies that pay above-average dividends. Vanguard keeps costs extremely low, with the fund’s expense ratio now at just 0.04% annually, making it one of the cheapest dividend ETFs available. The yield is lower than others on this list, but the fund holds large, financially sound companies whose dividends tend to grow over time, providing a degree of inflation protection that fixed-rate instruments cannot.
Dividend yield: 2.24% paid quarterly
Expense ratio: 0.04%
8. Schwab U.S. Dividend Equity ETF
Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD)
SCHD tracks the Dow Jones U.S. Dividend 100 Index, applying a quality screen that emphasizes strong cash flow, solid return on equity, and a consistent dividend history. In October 2024, the fund underwent a 3-for-1 share split, tripling the number of shares outstanding while reducing the per-share price proportionally, so the split had no effect on the total value held by existing investors. The quality filter has historically delivered a higher yield than VYM despite VYM’s name, and the fund’s dividend growth track record makes it particularly appealing for retirees with a longer time horizon who want income that can outpace inflation over a full market cycle.
Dividend yield: 3.3% paid quarterly
Expense ratio: 0.06%
Tax Efficiency Considerations
Not all dividend income is treated equally by the IRS, and the distinction matters significantly in retirement. Option premiums distributed by covered-call funds such as JEPI and JEPQ are taxed as ordinary income, which means they are subject to the investor’s marginal rate rather than the lower qualified dividend rate. Qualified dividends from equity funds like VYM and SCHD receive preferential capital gains tax treatment, which can be as low as 0% for retirees in lower brackets. Municipal bond income from MUB is exempt from federal income tax entirely, making it particularly valuable for high-bracket investors. AMLP rounds out the tax picture by providing energy infrastructure exposure through a standard 1099, removing the K-1 complexity that often comes with direct MLP ownership.
Editor’s note: This pass updated JEPI’s dividend yield to 8.21% and AUM to approximately $45 billion, raised JEPQ’s trailing yield to 10.8% and noted its assets have surpassed $40 billion, corrected VYM’s expense ratio to 0.04% and its yield to 2.24%, updated MUB’s yield to 3.17%, added context on SCHD’s October 2024 3-for-1 share split, and changed the title from “6 Dividend ETFs” to “8 Dividend ETFs” to match the eight funds covered in the article.
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