The 5 Best Dividend ETFs for 2024

We rank the best dividend ETFs with high yields and recent performance momentum in this installment of etf.com's Dividend Content Series.

kent
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Research Lead
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Reviewed by: etf.com Staff
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Edited by: Ron Day
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Best Dividend ETFs for 2024
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 #5 iShares Emerging Markets Dividend ETF (DVYE)
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#4 SPDR Portfolio S&P 500 High Dividend ETF (SPYD)
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 #3 WBI Power Factor High Dividend ETF (WBIY)
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#2 Hoya Capital High Dividend Yield ETF (RIET)
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#1 Invesco Ultra Dividend Revenue ETF (RDIV)
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How We Identified the Best Dividend ETFs for 2024

To arrive at the best dividend ETFs for 2024, we began with the entire universe of 68 exchange-traded funds classified in our database as “high dividend yield” and ranked them by trailing three-month returns through Jan. 8. Leveraged ETFs were eliminated from our search. 

 

The three-month period is significant because it captures a timeframe where bond yields began falling after the Federal Reserve’s fastest rate hike campaign history ended, and high-yielding dividend ETFs began to attract more attention from income-seeking investors. 

 

While past performance is no guarantee of future results, these dividend ETFs can offer investors a glimpse of performance potential in an environment of falling rates and a slowing economy.

iShares Emerging Markets Dividend ETF

The iShares Emerging Markets Dividend ETF (DVYE), which tracks an index of high-dividend-paying emerging markets companies, gained 17% over the past three months.  

 

The fund’s primary focus is on delivering high yield, which is currently 9.32%, but long-term performance has not been attractive, as the fund’s five- and 10-year percentile ranks are near the bottom of its emerging markets fund category.

 

DVYE’s expense ratio is 0.49% and its AUM is $675.2 million. 

SPDR Portfolio S&P 500 High Dividend ETF

The SPDR Portfolio S&P 500 High Dividend ETF (SPYD) tracks an equally-weighted index of the 80 highest-yielding stocks in the S&P 500. SPYD’s three-month gain is 18% and its current yield is 4.63%. 

 

The 80 holdings for SPYD are selected using a formula that ranks by the most recent dividend, dividend frequency and share price. 

 

SPYD’s expense ratio is low for a high dividend ETF at 0.07% and its AUM is a respectable $6.9 billion.

WBI Power Factor High Dividend ETF

The WBI Power Factor High Dividend ETF (WBIY) tracks an index of 50 U.S. stocks with high forecasted dividend yield and strong fundamental factors. WBIY’s three-month gain is 19% and its current yield is 5.21%. 

 

The fund’s selection pool is finally narrowed down by value metrics that reveal positive earnings from continuing operations, stable or growing dividends and sufficient cash flow to cover dividend payments.

 

WBIY’s expense ratio is on the high side at 1.00% and its AUM is low for the category at $59.4 million.

Hoya Capital High Dividend Yield ETF

The Hoya Capital High Dividend Yield ETF (RIET) tracks an index of 100 high-dividend-paying common and preferred stocks of U.S. real estate investment trusts and real estate operating companies. 

 

RIET’s three-month gain is nearly 20% and its 12-month trailing yield is 9.34%.

 

The only REIT ETF on our top five list, RIET targets the highest dividend REITs spread across a diverse range of market caps and property sectors. RIET’s expense ratio is above average at 0.50% and its AUM is low at $54.8 million.

Invesco Ultra Dividend Revenue ETF

The Invesco Ultra Dividend Revenue ETF (RDIV), which tracks an index of the 60-highest-yielding stocks, tops our best dividend ETFs list for 2024 with a three-month gain of 24%.

 

The fund’s holdings begin with the highest-yield stocks pulled from the S&P 900 index, which combines the S&P 500 and the S&P MidCap 400.

 

RDIV’s expense ratio is 0.39% and its AUM is $751.0 million.

Kent Thune is Research Lead for etf.com, focusing on educational content, thought leadership, content management and search engine optimization. Before joining etf.com, he wrote for numerous investment websites, including Seeking Alpha and Kiplinger. 

 

Kent holds a Master of Business Administration (MBA) degree and is a practicing Certified Financial Planner (CFP®) with 25 years of experience managing investments, guiding clients through some of the worst economic and market environments in U.S. history. He has also served as an adjunct professor, teaching classes for The College of Charleston and Trident Technical College on the topics of retirement planning, business finance, and entrepreneurship. 

 

Kent founded a registered investment advisory firm in 2006 and is based in Hilton Head Island, SC, where he lives with his wife and two sons. Outside of work, Kent enjoys spending time with his family, playing guitar, and working on his philosophy book, which he plans to publish in the coming year.