Despite equity valuations in the growth sectors reaching stretched levels and market volatility on the rise, high-dividend stocks have been one of the best performers to start 2026. In turn, this is translating to greater appeal for high-dividend-yielding ETFs.
These funds have been providing investors with the duality of price appreciation and, of course, income, by way of their strong dividend yields. Additionally, certain funds target high-quality, profitable companies with disciplined capital management, offering a ballast during times of volatility.
Five prominent high-dividend ETFs investors may want to watch are the Global X SuperDividend U.S. ETF (DIV ), WisdomTree U.S. High Dividend Fund (DHS ), iShares Core High Dividend ETF (HDV ), Vanguard High Dividend Yield ETF (VYM ), and the Franklin International Low Volatility High Dividend ETF (LVHD ).
What’s under the hood of these funds, driving their performance and yield?
The Heavy Yield Hitters: DIV and DHS
If the highest dividend yields are the prime motivating factor for exposure, then DIV and DHS would be ideal. As of March 12, the former has a 30-day SEC yield of 6.13% while the latter comes in at 3.56%.
DIV’s strategy is fairly simple. With an expense ratio of 45 basis points, it scours the universe of stocks to find the 50 highest yielding. Since it tracks the Indxx SuperDividend U.S. Low Volatility Index, it also seeks companies exhibiting low volatility. Given this selective screener, the fund’s performance is currently driven by names in the energy, materials, and consumer sectors.
Top three holdings (as of March 12):
- CVR Partners LP (UAN): A major nitrogen fertilizer producer occupies the top holding. Robust agricultural demand and high margins are helping to give DIV a substantial yield boost.
- Tsakos Energy Navigation Ltd. (TEN): This company operaties in marine energy transportation, capitalizing on charter rates for its fleet of crude and product tankers.
- Cal-Maine Foods Inc. (CALM): Cal-Maine occupies a large market share in the consumer staples sector (as the largest producer and distributor of fresh shell eggs in the U.S.) while also providing consistent cash flow.
By tracking the WisdomTree U.S. High Dividend Index, DHS provides exposure to the highest-yielding companies domestically with an expense ratio of 38 basis points. The holdings include a tilt towards energy and healthcare.
Top three holdings (as of March 12):
- Exxon Mobil Corp (XOM): High energy prices and disciplined operational efficiency is translating into strong dividend income by the oil giant.
- Altria Group Inc (MO): Altria’s portfolio of businesses in the consumer space exhibits robust pricing power. As such, the company provides one of the more consistent and high-yielding distributions.
- AbbVie Inc (ABBV): This healthcare leader offers non-discretionary income growth by operating in high-margin immunology and oncology markets.
The Quality Tilt: HDV and VYM
Investors who are wary of dividend traps may want to tilt their exposure to a more value-oriented approach. HDV and VYM can serve this purpose with their more discerning screeners as well as the brand cache of BlackRock’s iShares and Vanguard, respectively.
With an expense ratio of just eight basis points, HDV tracks the Morningstar Dividend Yield Focus Index. It utilizes a strict screening process for financial health and sustainability. Its concentration in the energy and consumer staples sectors give the fund a combination of growth and defense.
Top three holdings (as of March 12):
- Exxon Mobil Corp (XOM): As mentioned, rising energy prices are helping to produce the oil titan’s strong yield.
- Chevron Corp (CVX): Along with Exxon, exposure to Chevron solidifies the fund’s emphasis on the energy sector. Chevron, in particular, is benefiting from low-cost production and a strong balance sheet to maintain its strong dividend growth record.
- Johnson & Johnson (JNJ): A staple in the healthcare sector, J&J offers reliable yield backed by diversified global revenue streams in medical technology and pharmaceuticals.
VYM tracks the FTSE High Dividend Yield Index and includes an investment style that targets large-cap value names. With an expense ratio of just four basis points, it should also appeal to cost-conscious investors.
Top three holdings (as of January 31):
- Broadcom Inc. (AVGO): With artificial intelligence (AI) not going away anytime soon, Broadcom has become a critical growth-and-income engine. The AI infrastructure buildout is providing significant capital appreciation in tandem with a robust dividend growth profile.
- JPMorgan Chase & Co. (JPM): The banking giant has been capitalizing on the current interest rate regime, which is helping to bolster its net interest income.
- Exxon Mobil Corp (XOM): Once again, this oil giant finds itself in a fund’s top three holdings.
The Low-Vol Specialist: LVHD
At 27 basis points, LVHD addresses the current market volatility while still offering a 30-day SEC yield of 3.26% (as of February 28 and with a fee waiver). By tracking the Franklin Low Volatility High Dividend Index, the fund is currently tilting towards utilities and consumer staples. More broadly, it seeks out high-quality companies with healthy and sustainable dividends.
Top three holdings (as of March 12):
- Verizon Communications (VZ): Thanks to its subscription-based revenue model, the communications company provides the low-volatility profile that LVHD seeks, as well as steady income.
- Chevron Corp (CVX): The oil titan makes a second appearance in the top three holdings of a fund due to its strong balance sheet and track record for dividend growth.
- American Electric Power (AEP): This utilities company is a textbook LVHD holding with predictable earnings without the dramatic price swings inherent in the tech sector.
For more news, information, and strategy, visit ETFdb.
