“This past decade was one of the worst for both dividend-paying stocks and the broad market,” Schwartz said. In contrast the last time dividend taxes were raised from 31% to 39.6% under President Clinton, “it was one of the best decades for dividend stocks.”

“The bottom line conclusion of our research is that the market environment is more important than the tax environment,” Schwartz said.

Some dividend ETFs include:

  • Vanguard Dividend Appreciation (NYSEArca: VIG): 2.08% yield
  • iShares Dow Jones Select Dividend Index Fund (NYSEArca: DVY): 3.49% yield
  • iShares High Dividend Equity Fund (NYSEArca: HDV): 3.28% yield
  • SPDR S&P Dividend ETF (NYSEArca: SDY): 3.14% yield
  • Vanguard High Dividend Yield Index Fund (NYSEArca: VYM): 2.97% yield
  • WisdomTree Dividend Top 100 Fund (NYSEArca: DTN): 4.57% yield
  • First Trust Morningstar Dividend Leaders (NYSEArca: FDL): 3.44% yield

For more information on dividends, visit our dividend ETFs category.

Max Chen contributed to this article.

Full disclosure: Tom Lydon’s clients own DVY and VYM.