For higher yielding options, the Vanguard High Dividend Yield ETF (NYSEArca: VYM) has a 3.37% 12-month yield, iShares Core High Dividend ETF (NYSEArca: HDV) has a 4.07% 12-month yield and iShares Select Dividend ETF (NYSEArca: DVY) has a 3.46% 12-month yield.
VYM selects stocks based on annual dividend yield forecasts, excluding more sensitive areas like real estate investment trusts, master limited partnerships and micro-caps. The portfolio includes a collection of large-cap heavy names with an above average yield. HDV also screens picks to account for financially healthy, high-quality U.S. companies with relatively high dividend payouts. DVY tracks 100 high-yielding U.S. stocks and weights components by dividend per share.
For more information on dividend stocks, visit our dividend ETFs category.
Full disclosure: Tom Lydon’s clients own shares of DVY.
Max Chen contributed to this article.