Two Dividend ETFs with High Yields to Consider Purchasing Now
Federal Reserve Rate Cuts: Traders anticipate an 87% chance of the Federal Reserve cutting interest rates this week, marking the third cut of 2025, which could lead to a challenging environment for high-yield investments as U.S. Treasury yields decline.
Importance of Dividend-Growing Stocks: In a low-rate environment, dividend-growing stocks become crucial for income investors, with the Schwab U.S. Dividend Equity ETF and SPDR S&P Dividend ETF being highlighted as strong options for consistent income streams.
Schwab U.S. Dividend Equity ETF: This ETF focuses on companies with a minimum of 10 consecutive years of dividend growth, boasting a current yield of 3.8% and an average annual return of 12.17% since its inception in 2011, with a low expense ratio of 0.06%.
SPDR S&P Dividend ETF: Designed to track stocks with at least 20 years of dividend increases, this ETF has a yield of 2.6% and has returned an average of 8.65% annually since 2005, but has underperformed in 2023 due to its lower exposure to tech stocks.
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Nvidia Is Thriving, While These Dividend ETFs Are Outperforming.
Market Rally: The market rally is expanding beyond just tech stocks, indicating a broader recovery.
Dividend-Paying Stocks: Companies like Exxon Mobil, Walmart, Ford, and Coca-Cola are outperforming traditional tech favorites.
"Dow's Top Dividend Stocks Delivered Impressive Returns This Year"
- Performance of Dog of the Dow: The ten highest-yielding stocks in the Dow Jones Industrial Average have seen an average increase of 17.8% in 2025 through December 26.
- Comparison with Dow 30: This performance surpasses the overall gain of 14.5% for the Dow 30 during the same period.
- Appeal for Dividend Investors: The strong performance of these stocks highlights the attractiveness of dividend investing this year.
- Market Trends: The trend indicates a favorable environment for dividend-focused investment strategies within the Dow.
Dogs of the Dow Enjoyed a Successful Year: Discover the 10 Stocks for 2026.
- Performance of Dog of the Dow: The ten highest-yielding stocks in the Dow Jones Industrial Average have seen an average increase of 17.8% in 2025 as of December 26.
- Comparison with Dow 30: This performance surpasses the overall gain of 14.5% for the Dow 30 index during the same period.
- Focus on Dividend Investors: The year has been particularly favorable for dividend investors who focus on these high-yielding stocks.
- Market Trends: The trend indicates a strong preference for dividend-paying stocks among investors in the current market environment.
S&P 500 Q3 Share Buybacks Increase 6.2% to $249 Billion Following Q2 Drop
S&P 500 Buybacks Overview: In Q3 2025, S&P 500 share repurchases reached $249.0 billion, marking a 6.2% increase from Q2 2025 and a 9.9% rise from Q3 2024, with total buybacks surpassing $1 trillion for the second time in history.
Company Participation and Trends: A total of 333 companies reported buybacks of at least $5 million, a slight decrease from the previous quarter, while the top four companies (Apple, NVIDIA, Alphabet, and Meta) accounted for over 22% of the total buybacks.
Sector Spending Changes: Health Care and Financials saw significant increases in buyback spending, up 32.2% and 26.3% respectively, while Materials and Real Estate reduced their expenditures by 21.0% and 40.3%.
Dividends Update: S&P 500 dividends rose by 1.8% to $168.1 billion in Q3 2025, compared to $165.2 billion in Q2 2025, and were 7.0% higher than the $157.0 billion reported in Q3 2024.
Dollar Stores Surpass Mag-7 in 2025: Is It Time to Consider Value and Dividend ETFs?
AI vs. Value Stocks: Despite the hype around AI, value stocks like Dollar Tree and Dollar General have significantly outperformed major tech companies, indicating a shift in consumer behavior towards affordability amid economic pressures.
Consumer Trends: Dollar Tree and Dollar General reported increases in same-store sales, with a notable trend of wealthier consumers "trading down" to dollar stores, reflecting growing affordability concerns among various income groups.
Investment Strategies: In light of economic uncertainty, there is a growing interest in dividend-focused investments, as investors seek stable cash flow and predictable earnings from value stocks, particularly in sectors like consumer staples and utilities.
ETF Recommendations: Investors are encouraged to consider ETFs that include Dollar Tree and Dollar General, such as Invesco S&P 500 Equal Weight Consumer Staples ETF and Invesco S&P 500 Pure Value ETF, as well as other dividend-focused ETFs for potential steady income.
"Impressive 21% Dividend Yield, But This One Disturbing Chart Tells a Different Story"
Total Return Focus: Investors should prioritize total return, which combines sustainable dividends and capital gains, rather than being lured by high dividend yields that may not provide long-term value.
Balanced Yield Strategy: Aiming for a yield around 8% to 10% is recommended, as it tends to be more sustainable and can deliver significant income while still allowing for capital appreciation.
Closed-End Funds (CEFs): The Liberty All-Star Equity Fund (USA) exemplifies a successful CEF strategy, offering a high yield while maintaining dividend growth and trading at a discount to its net asset value.
Investment Opportunities: The article suggests exploring four high-yielding CEFs that currently offer an average yield of 9.5%, emphasizing the potential for both income and capital gains through strategic buying and selling.
Nvidia Is Thriving, While These Dividend ETFs Are Outperforming.
Market Rally: The market rally is expanding beyond just tech stocks, indicating a broader recovery.
Dividend-Paying Stocks: Companies like Exxon Mobil, Walmart, Ford, and Coca-Cola are outperforming traditional tech favorites.
"Dow's Top Dividend Stocks Delivered Impressive Returns This Year"
- Performance of Dog of the Dow: The ten highest-yielding stocks in the Dow Jones Industrial Average have seen an average increase of 17.8% in 2025 through December 26.
- Comparison with Dow 30: This performance surpasses the overall gain of 14.5% for the Dow 30 during the same period.
- Appeal for Dividend Investors: The strong performance of these stocks highlights the attractiveness of dividend investing this year.
- Market Trends: The trend indicates a favorable environment for dividend-focused investment strategies within the Dow.
Dogs of the Dow Enjoyed a Successful Year: Discover the 10 Stocks for 2026.
- Performance of Dog of the Dow: The ten highest-yielding stocks in the Dow Jones Industrial Average have seen an average increase of 17.8% in 2025 as of December 26.
- Comparison with Dow 30: This performance surpasses the overall gain of 14.5% for the Dow 30 index during the same period.
- Focus on Dividend Investors: The year has been particularly favorable for dividend investors who focus on these high-yielding stocks.
- Market Trends: The trend indicates a strong preference for dividend-paying stocks among investors in the current market environment.
S&P 500 Q3 Share Buybacks Increase 6.2% to $249 Billion Following Q2 Drop
S&P 500 Buybacks Overview: In Q3 2025, S&P 500 share repurchases reached $249.0 billion, marking a 6.2% increase from Q2 2025 and a 9.9% rise from Q3 2024, with total buybacks surpassing $1 trillion for the second time in history.
Company Participation and Trends: A total of 333 companies reported buybacks of at least $5 million, a slight decrease from the previous quarter, while the top four companies (Apple, NVIDIA, Alphabet, and Meta) accounted for over 22% of the total buybacks.
Sector Spending Changes: Health Care and Financials saw significant increases in buyback spending, up 32.2% and 26.3% respectively, while Materials and Real Estate reduced their expenditures by 21.0% and 40.3%.
Dividends Update: S&P 500 dividends rose by 1.8% to $168.1 billion in Q3 2025, compared to $165.2 billion in Q2 2025, and were 7.0% higher than the $157.0 billion reported in Q3 2024.
Dollar Stores Surpass Mag-7 in 2025: Is It Time to Consider Value and Dividend ETFs?
AI vs. Value Stocks: Despite the hype around AI, value stocks like Dollar Tree and Dollar General have significantly outperformed major tech companies, indicating a shift in consumer behavior towards affordability amid economic pressures.
Consumer Trends: Dollar Tree and Dollar General reported increases in same-store sales, with a notable trend of wealthier consumers "trading down" to dollar stores, reflecting growing affordability concerns among various income groups.
Investment Strategies: In light of economic uncertainty, there is a growing interest in dividend-focused investments, as investors seek stable cash flow and predictable earnings from value stocks, particularly in sectors like consumer staples and utilities.
ETF Recommendations: Investors are encouraged to consider ETFs that include Dollar Tree and Dollar General, such as Invesco S&P 500 Equal Weight Consumer Staples ETF and Invesco S&P 500 Pure Value ETF, as well as other dividend-focused ETFs for potential steady income.
"Impressive 21% Dividend Yield, But This One Disturbing Chart Tells a Different Story"
Total Return Focus: Investors should prioritize total return, which combines sustainable dividends and capital gains, rather than being lured by high dividend yields that may not provide long-term value.
Balanced Yield Strategy: Aiming for a yield around 8% to 10% is recommended, as it tends to be more sustainable and can deliver significant income while still allowing for capital appreciation.
Closed-End Funds (CEFs): The Liberty All-Star Equity Fund (USA) exemplifies a successful CEF strategy, offering a high yield while maintaining dividend growth and trading at a discount to its net asset value.
Investment Opportunities: The article suggests exploring four high-yielding CEFs that currently offer an average yield of 9.5%, emphasizing the potential for both income and capital gains through strategic buying and selling.
