5 High-Yield Dividend Stock ETFs to Buy and Hold Forever

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By Ian Cooper Published
5 High-Yield Dividend Stock ETFs to Buy and Hold Forever

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With trade war volatility, investors are hunting for value, safety, and consistently strong dividends in high-yield dividend stock ETFs.

For one, these ETFs and their holdings can help smooth out the volatile ride when markets drop. Two, they offer exposure to a diversified portfolio of respected companies that have a history of paying dividends, which can provide a steady stream of income.

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Three, dividend ETFs offer solid diversification, low expense ratios, and tax efficiency.

Look at the Global X Super Dividend U.S. ETF (NYSEARCA:DIV), for example.

With an expense ratio of 0.45% and a monthly dividend yield of 7.28%, the DIV ETF provides access to 50 of the highest-yielding stocks in the U.S. At the moment, some of those top holdings include Altria Group, Avista Corp., Omega Healthcare, Verizon, AT&T, Philip Morris, Northwestern Energy Group and dozens more.

While the DIV ETF may not have the most attractive chart at the moment thanks to the trade war, it is starting to pivot higher. Last trading at $17.10, we’d like to see it retest $18.75.

Other hot high-yield dividend-paying ETFs include:

JPMorgan Nasdaq Equity Premium Equity Income ETF

There’s also the JPMorgan Nasdaq Equity Premium Equity Income ETF (NASDAQ:JEPQ).

With an expense ratio of 0.35%, the JEPQ ETF carries a monthly yield of 12.42%. It also generates income by selling options and by investing in U.S. large-cap growth stocks. All of which allows it to deliver a monthly income stream through options premiums and stock dividends. Even better, investors have also benefited from the ETF’s appreciation.

Some of its 108 holdings include Apple, Nvidia, Microsoft, Amazon, Alphabet, Meta Platforms, Broadcom, Netflix, Tesla and Costco to name just a few.

While the ETF recently fell from about $57 to a low of about $45 thanks to the trade war, it is starting to come back strong. Last trading at $49.54, we’d like to see it retest $55 initially.

SPDR Portfolio S&P 500 High Dividend ETF 

With an expense ratio of 0.07% and a yield of just under 5%, the SPDR Portfolio S&P 500 High Dividend ETF (NYSEARCA:SPYD) tracks the total return performance of the S&P 500 High Dividend Index, which is designed to measure the performance of the top 80 high dividend stocks on the S&P 500. At the moment, it has 77 holdings.

Some of its top holdings include CVS Health Group, Consolidated Edison, Philip Morris, AT&T, Exelon Corp., Verizon, and Altria Group to name just a few.

The SPYD ETF was also beaten down by the trade war. However, after slipping from about $44.50 to a low of $38, it’s also starting to pivot higher. Last trading at $40.42, we’d like to see the SPYD ETF rally back to $44.50 again initially.

Fidelity High Dividend ETF 

We can also look at the Fidelity High Dividend ETF (NYSEARCA:FDVV).

With an expense ratio of 0.16% and a yield of 3.06%, the FDVV ETF tracks the Fidelity High Dividend Index, which is designed to reflect the performance of stocks of large- and mid-capitalization dividend-paying companies that are expected to continue to pay and grow their dividends.

Some of its top holdings include Apple, Microsoft, Nvidia, JPMorgan Chase, Visa, Exxon Mobil, Philip Morris, and Procter & Gamble to name a few.

Trade war chaos recently sent the ETF from $50 to a low of $43. However, it’s also starting to pivot higher. Last trading at $46.26, we’d like to see it retest $50.

iShares Core High Dividend ETF 

There’s also the iShares Core High Dividend ETF (NYSE:HDV).

With an expense ratio of 0.08% and a yield of 3.3%, the HDV ETF tracks the investment results of an index composed of relatively high dividend-paying U.S. equities. Some of its 75 holdings include Exxon Mobil, Johnson & Johnson, Progressive Corp., Chevron, AbbVie, Philip Morris, AT&T, and Coca-Cola to name just a few.

Oversold at $111.82, it’s also starting to pivot higher. We’d like to see the ETF retest $119 a share again initially.

JPMorgan Equity Premium Income Fund 

Another solid dividend ETF is the JPMorgan Equity Premium Income Fund (NYSEARCA:JEPI).

With an expense ratio of 0.35% and a yield of 8.2%, the ETF generates income through stock dividends and options premiums.

Some of its 129 holdings include Progressive Corp., Visa, Mastercard, Southern Company, UnitedHealth, Trane Technologies, AbbVie, and Amazon to name just a few. Much like the other dividend-paying ETFs on this list, the JEPI ETF recently dropped from a high of about $59 to $50 a share thanks to trade war volatility.

However, it’s also just starting to pivot higher. Last trading at about $54 a share, we’d like to see the JPMorgan Equity Premium Income Fund initially retest $59 again shortly.

Photo of Ian Cooper
About the Author Ian Cooper →

Ian Cooper is a veteran market analyst and investment strategist with more than 20 years of experience covering stocks, commodities, and macro trends. Since 1999, he has helped investors identify market opportunities using a blend of technical analysis, fundamental research, and market sentiment.

He is the creator of the ADD News Flow Strategy, which focuses on trading market reactions to major news events and investor psychology. Cooper was also among the analysts who warned about the 2008 financial crisis and major financial institution collapses ahead of the broader market.

Before joining 247 Wall St., Cooper wrote extensively for InvestorPlace and other financial publications, covering market trends, trading strategies, and investment opportunities.

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