5 best dividend ETFs to buy for Q1 2024

Dividend ETFs offer an easy way to earn regular income while diversifying your portfolio. This guide picks the top dividend ETFs for the year ahead.
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Updated: Nov 20, 2023
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Dividend paying stocks are often the first port of call for anyone wanting regular income from their investments. However, buying shares in dividend ETFs offers an easier way to invest in companies that make regular payments to shareholders. Our beginner friendly guide picks the best dividend ETFs and tells you where to buy them. 

What are the top dividend ETFs to buy?

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In the table below we’ve listed the best five dividend ETFs selected by our expert analysts. You’ll find each one’s ticker symbol and name. Continue scrolling to learn more about each ETF in detail or have a look at our comprehensive article if you would like to learn more about buying ETFs.

#ETF symbolETF nameDividend yieldWhere to Trade
1JEPIJP Morgan Equity Premium Income ETF8.13%
Buy JEPI

eToro offers real assets only, no CFD products. eToro USA LLC and eToro USA Securities Inc.; Investing involves risk, including loss of principal; Not a recommendation.

2DVYEiShares Emerging Markets Dividend ETF10.15%
Buy DVYE

eToro offers real assets only, no CFD products. eToro USA LLC and eToro USA Securities Inc.; Investing involves risk, including loss of principal; Not a recommendation.

3KBWDInvesco KBW High Dividend Yield Financial ETF12.75%
Buy KBWD

eToro offers real assets only, no CFD products. eToro USA LLC and eToro USA Securities Inc.; Investing involves risk, including loss of principal; Not a recommendation.

4VHYLFTSE All-World High Dividend Yield UCITS ETF3.73%
Buy VHYL

eToro offers real assets only, no CFD products. eToro USA LLC and eToro USA Securities Inc.; Investing involves risk, including loss of principal; Not a recommendation.

5GBDVSPDR S&P® Global Dividend Aristocrats UCITS ETF4.68%
Buy GBDV

eToro offers real assets only, no CFD products. eToro USA LLC and eToro USA Securities Inc.; Investing involves risk, including loss of principal; Not a recommendation.

List selected by our team of analysts, updated February 2024

1. JP Morgan Equity Premium Income ETF (NYSEARCA: JEPI)

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  • Dividend yield: 8.13%
  • Expense ratio: 0.35%
  • Fund size: $29.74 billion
  • Benchmark index: Fund managers

Taking first spot on our list of the best dividend etf to buy in 2024 is the JP Morgan Equity Premium Income ETF. The fund by JPMorgan Chase includes a diversified portfolio of large-cap dividend paying companies as well as option premiums. A key feature of JEPI is the monthly dividend payouts of all income earned while incurring less volatility than the broader market. 

It sells call options on its managed volatility and is one of the top paying dividend ETFs, with a yield of over 8%. In fact, its yield is in the top 1% of all US registered funds. Unlike many other ETFs, JEPI does not track an index, rather is overseen by portfolio managers. It uses proprietary ranking models to select its dividend stocks. 

It has over 100 holdings and offers a fairly equal split among industries and stocks. Some of the world’s best known businesses and dividend stocks are held by the ETF, including Microsoft, Google, and CocaCola. Buying shares in JEPI could be a good idea for anyone wanting income from consistently paying dividends from a high dividend yield ETF, while having exposure to some of the largest U.S based companies. 

Sign-up & trade JEPI ETF

76% of retail CFD accounts lose money. Your capital is at risk.

2. iShares Emerging Markets Dividend ETF (NYSEARCA: DVYE)

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  • Dividend yield: 8.13%
  • Expense ratio: 0.49%
  • Fund size: $621 million
  • Benchmark index: Dow Jones Emerging Markets Select Dividend Index

The iShares seeks to track the performance of the Dow Jones Emerging Markets Select Dividend Index. It invests in a broad range of high dividend paying established companies in emerging markets. DVYE has a yield of over 8% and gives investors access to around 100 stocks held in its portfolio.

It is well diversified with a portfolio makeup of companies from around the world, although about half of the fund is geared towards Chinese, Russian, and Brazilian businesses providing instant diversification. It has a mostly equal weighting system, meaning no single company is able to drastically impact its performance. Almost half of the fund holdings reside in the Energy, financial, and utilities sectors. 

Since its inception in 2012 it has dropped in value, although some of that drop was down to the coronavirus pandemic. In the time following, it has recouped part of its losses. The iShares takes second place on our list as it not only offers high dividends, but it gives exposure to some of the best emerging market stocks.  

Sign-up & trade DVYE ETF

76% of retail CFD accounts lose money. Your capital is at risk.

3. Invesco KBW High Dividend Yield Financial ETF (NASDAQ: KBWD)

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  • Dividend yield: 12.75%
  • Expense ratio: 3.84%
  • Fund size: $320 million
  • Benchmark index: KBW Nasdaq Financial Sector Dividend Yield Index

Third place on our list goes to the Invesco KBW High Dividend Yield Financial ETF. The fund seeks to track the performance of the KBW Nasdaq Financial Sector Dividend Yield Index. As its name suggests, it aims to invest in high dividend financial companies based in the United States. KBWD is a high dividend ETF with a yield of just over 7%.

It predominantly holds small-cap value stocks although it does include some midcaps. It invests across the whole financial sector and includes traditional investment companies, mortgage providers, and real estate investment funds among others. It’s one of the smallest funds in terms of number of holdings, with just over 40. 

The fund has performed well in recent times and has climbed by over 100% in value in a short span of time. It offers a fairly equal weighting across the board and gives investors the safety net of knowing no single stock can impact its price too much. Although, it’s important to bear in mind its reliance on one specific sector. 

Sign-up & trade KBWD ETF

76% of retail CFD accounts lose money. Your capital is at risk.

4. FTSE All-World High Dividend Yield UCITS ETF (LSE: VHYL)

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  • Dividend yield: 3.73%
  • Expense ratio: 0.29%
  • Fund size: $4.12 billion
  • Benchmark index: FTSE All-World High Dividend Yield Index

The FTSE All-World is a low cost fund that employs a passive management approach and seeks to track the performance of the FTSE All-World High Dividend Yield Index. It invests in large and mid-sized stocks in developed and emerging markets that pay dividends that are generally higher than average. 

VHYL has a dividend yield of over 3% and the fund’s holdings include 1800 stocks with plenty of upside for dividend growth. Its holdings are split across the world, although almost half of its top holdings are U.S. based companies. It favours the financial sector which makes up a quarter of the fund and invests in some of the world’s leading companies. 

It includes many household names such as Home Depot, JP Morgan, and Bank of America which are some of the top investments in the global dividend ETF. The fund is mostly equal in its allocation to each of its holdings, making it a safer and more diversified investment. Although VHYL has a lower dividend yield compared to other funds on our list, its exposure to worldwide markets and diversified portfolio makes it a top dividend ETF to earn stable dividends from your investment strategy.  

Sign-up & trade VHYL ETF

76% of retail CFD accounts lose money. Your capital is at risk.

5. SPDR S&P® Global Dividend Aristocrats UCITS ETF (LSE: GBDV)

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  • Dividend yield: 4.68%
  • Expense ratio: 0.45%
  • Fund size: $782 million
  • Benchmark index: S&P Global Dividend Aristocrats index

Final place on our list goes to the SPDR S&P Global Dividend Aristocrats ETF. The objective of the Fund is to track the performance of high dividend yielding equities globally. It does this by investing in companies that have followed a managed-dividends policy of increasing or maintaining dividends for at least 10 consecutive years and simultaneously have positive return on equity and cash flow from operations.

It has a dividend payment yield of over 3.5% and holds around 100 stocks within its portfolio. Similar to other ETFs on our list, the financial industry makes up a large portion of the fund. Around 30% of its holdings belong to the sector, with the rest split between utilities, consumer staples, and real estate among others. 

GBDV is heavily invested in U.S. located businesses so it is not as geographically diversified as other ETFs. Some of its largest holdings include Exxon Mobil, Japan Tobacco, and GlaxoSmithKlein. Its criteria for buying stocks that have at least 10 consecutive years of maintaining dividends means it could be a safer option compared to other types of dividend investing ETFs.

Sign-up & trade GBDV ETF

76% of retail CFD accounts lose money. Your capital is at risk.

If you are considering to learn more about which ETFs overall are the best ones, you should have a look at our experts suggestions regarding this topic.

Where to buy the best dividend ETFs

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To buy the best dividend ETFs you will first need to register with a broker. The table below has a selection of our expertly recommended brokers. Simply click the links to register in just a few minutes. 

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1
Min. Deposit
$ 10
Best offer
User Score
10
Up to $240 bonus!
Deposit with ACA, Wire, Pay with my bank
Invest for dividends and get payout on stocks on Ex-Dividend day
Start Trading
Payment Methods:
Bank Transfer, Credit Card, Debit Card, PayPal, Wire Transfer
Full Regulations:
CySEC, FCA

Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Invezz.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB.

2
Min. Deposit
$ 100
Best offer
User Score
9.9
Trade +2000 CFDs on Shares, Options, Commodities & more
Unlimited risk-free Demo Account
0 commissions & attractive spreads with up to 1:5 leverage
Start Trading
Payment Methods:
American Express, Apple Pay, Bank Transfer, Credit Card, Debit Card, Discover, Google Pay, Mastercard, PayPal, SEPA, Trustly, Visa, , skrill
Full Regulations:
ASIC, FCA, FSA, MAS, cysec-250-14-regulator, isa-regulator

82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

3
Min. Deposit
$ 0
Best offer
User Score
9.7
Diverse stock selection providing investors with a diverse array of options for their portfolios.
Advanced trading tools aiding in executing trades with precision in the dynamic stock market.
Easy portfolio management.
Start Trading
Payment Methods:
ACH, Bank Wire, Check
Full Regulations:
CFTC, FCA, FINRA, IIROC, NFA, NYSE, SIPC
Interactive Brokers (U.K.) Limited is authorised and regulated by the Financial Conduct Authority. FCA Register Entry Number 208159. Products are only covered by the UK FSCS in limited circumstances.

What is a dividend ETF?

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It’s an exchange traded fund that’s available to buy and sell on the stock market. Dividend ETFs give investors exposure to a basket of stocks which pay regular dividends. ETFs of this nature are most suited to anyone seeking income from their investments. Dividend ETFs are not tied down to a specific industry niche and can invest in a range of stocks. 

Dividend ETFs invest in all sizes of companies and include some of the largest and best known businesses in the world. You are able to buy shares in a dividend ETF the same way as any other stock. Most ETFs track the performance of a particular index or industry. 

Are dividend ETFs a good investment?

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Yes they can be and they are best suited for anyone wanting to generate income from their investments. Typically, investors who seek regular income buy individual stocks, however, dividend ETFs offer a much easier way to earn regular payments. These types of ETFs not only pay dividends but give investors exposure to a diversified range of stocks. 

Most dividend ETFs invest in companies from across the globe and include the largest blue chip companies, to smaller businesses in emerging markets. Some dividend ETFs only buy stocks of companies that have historically maintained dividend payments, while other don’t. So it’s important to consider the types of companies included in any ETF. 

Whatever you decide to do, it’s key to keep up to date with the latest news and market analysis which you can do by clicking any of the links below. You’ll also need to register with a trusted broker prior to buying an ETF. If you click on the button below you’ll be taken to a selection of our expertly selected ETF platforms offering dividend ETFs.

Sign up to a broker to buy dividend ETFs

Latest dividend news

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Prash Raval
Financial Writer
Prash is a financial writer for Invezz covering FX, the stock market and investing. For over a decade he has traded spot FX full time while... read more.