These Dividend ETFs Are Better for Retirees

Image Source / DigitalVision via Getty Images

Vanguard Dividend Appreciation (VIG) has delivered a 12.83% average annual return over the past decade with a 1.59% yield.
Vanguard High Dividend Yield (VYM) holds 566 stocks and offers a 2.47% yield with lower tech concentration than most funds.
JPMorgan Equity Premium Income (JEPI) uses covered call options to generate a 7.24% dividend yield with monthly distributions.
If you’re thinking about retiring or know someone who is, there are three quick questions causing many Americans to realize they can retire earlier than expected. take 5 minutes to learn more here

We could all benefit from a little extra income during retirement. Whether you’ve got many years before retiring or you’re already enjoying your golden years, putting your money into assets that can generate steady income is one way to secure the retirement period.

While Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) is a popular fund among dividend investors, there are others with a higher yield and upside potential. Vanguard Dividend Appreciation Index Fund ETF (NYSE: VIG), Vanguard High Dividend Yield ETF (NYSEARCA:VYM) and JPMorgan Equity Premium Income ETF (NYSEARCA:JEPI) make for stronger ETFs for retirees.

Here’s why.

The Vanguard Dividend Appreciation Index Fund ETF tracks the performance of the S&P U.S. Dividend Growers Index and invests in 337 stocks from companies that have a history of increasing the dividend payments for at least 10 years. The passively managed fund invests in large-cap stocks and has a low expense ratio of 0.05%. It pays a quarterly dividend and has a yield of 1.59%, and its most recent payment was $0.86 per share.

The fund has the highest allocation in the information technology sector (27.30%), followed by the financial sector (22.20%) and healthcare (15.20%). The top 10 stocks form 33.3% of the portfolio and include industry stalwarts such as Broadcom, Microsoft, Apple, Oracle, Walmart, and Eli Lily. Over the last five years, VIG has grown its dividend payments by 10% annually.

Besides the dividend payments, the fund has generated an average return of 12.83% per year in the last decade. A double-digit average rate of return is impressive in the current market environment. VIG has generated a cumulative 3-year return of 54.60%, and a 5-year return of 89.46%. The fund offers a balanced approach of income and value stocks. A solid performer, VIG has become an industry favorite with high total returns.

The Vanguard High Dividend Yield Index Fund ETF is similar to the Vanguard Dividend Appreciation Index. It also focuses on stocks from companies that have high dividend yields. However, it contains more stocks, with 566 holdings. While it offers greater diversification, it dilutes the returns. But it can also reduce the impact of volatility, making it ideal for retirees.

The ETF has the highest allocation in financials (21.60%), followed by industrials and technology (13%) and healthcare (12.40%). The top 10 holdings include Broadcom, JP Morgan Chase, Walmart, Procter & Gamble, Home Depot, and Exxon Mobil. It has a yield of 2.47% and an expense ratio of 0.06%.

In the past decade, the ETF has generated an average rate of return of 10.93% per year. Its 3-year cumulative return is 44.28% and its 5-year return is 105.33%. The highly diversified fund ensures that you aren’t too exposed to a few stocks. Hence, even if one stock underperforms, there may not be an adverse impact on your portfolio.

Additionally, the fund doesn’t have a lot of exposure to tech, setting it apart from other tech-focused funds. The fund’s share price is up 10.75% in 2025 and is exchanging hands for $141.25.

JPMorgan Equity Premium Income ETF aims to offer a steady monthly income for investors while ensuring less volatility. It is a covered call ETF that works slightly differently than other ETFs mentioned here.

It builds a strong portfolio through fundamental research and then writes out-of-the-money call options on the index. The premium from the call options allows the ETF to maintain a juicy dividend yield of 7.24%. JEPI holds 123 stocks and has an expense ratio of 0.35%.

The fund has gained massive popularity due to the options writing strategy and has managed to generate an income yield of over 11% over the year. It has the highest allocation in the technology sector (14.9%), followed by healthcare (12.3%) and industrials (11.8%).

Its top 10 holdings include the Magnificent Seven, such as Alphabet, Amazon, Nvidia, and Apple. The equity portfolio ensures market exposure that grows the investment value in the long term, while writing options ensures steady monthly income.

JEPI has generated a cumulative 3-year return of 34.30% and 67.96% in 5 years. This is a strong return for an income-focused ETF. It is exchanging hands for $56.53 and has remained flat in 2025.

You may think retirement is about picking the best stocks or ETFs, but you’d be wrong. See even great investments can be a liability in retirement. The difference comes down to a simple: accumulation vs distribution. The difference is causing millions to rethink their plans.

The good news? After answering three quick questions many Americans are finding they can retire earlier than expected. If you’re thinking about retiring or know someone who is, take 5 minutes to learn more here.

Source link

Hot topics

Finance

Marketing

Politics

Strategy

Hot topics

Finance

Marketing

Politics

Strategy

These Dividend ETFs Are Better for Retirees

Latest Topics

Related Articles

Company

Headlines

Newsletter