Top 7 Dividend ETFs for September 2024 – Forbes Advisor

In compiling this list, we started with a pool of high-dividend U.S. and international equity ETFs. We have eliminated bond funds, real estate investment trusts and certain other high-yield asset classes.

We then eliminated ETFs with expense ratios higher than 0.67%. Generally speaking, lower fees increase profits. We also excluded funds with a dividend yield below 2.67%.

Finally, we examined newer funds that were launched within three years. With these steps, our list included approximately 500 funds.

Our next step was to exclude ETFs with Morningstar ratings below three. The research firm’s stars measure a fund’s risk-adjusted return compared to open-end funds in the same category.

To make this list as attractive as possible to the widest range of investors, we excluded niche sector funds and selected only broadly diversified, high-dividend U.S. and international equity funds. Fourteen funds passed through the screen.

The seven best dividend stock ETFs cover a diverse list of fund families and strategies. One of our seven ETFs is actively managed. Many dividend funds lean towards value, but we also include funds with growth and momentum. You can feel confident choosing any of the dividend ETFs on our list to complete your diversified investment portfolio.