2 Stellar High-Yield Dividend ETFs to Buy For Your Growth and Income Portfolio
Over the past 100 years, stocks have proved to be the best investment. Better than bonds, oil, gold or real estate. That’s because they have a remarkably consistent track record, returning over 10% annually on average. Yet the market rarely ever returns exactly 10% in any given year and sometimes stocks can fall at an […] The post 2 Stellar High-Yield Dividend ETFs to Buy For Your Growth and Income Portfolio appeared first on 24/7 Wall St..
Over the past 100 years, stocks have proved to be the best investment. Better than bonds, oil, gold or real estate. That’s because they have a remarkably consistent track record, returning over 10% annually on average.
Yet the market rarely ever returns exactly 10% in any given year and sometimes stocks can fall at an alarming and dramatic rate. Just in 2025, the Nasdaq Composite index tumbled over 10% in a matter of weeks, officially checking into correction territory.
So it’s a good idea to keep some money on the sidelines, so if a downturn occurs and you need money, you won’t have to sell your stocks at a discount or loss. But where should you put your long-term, buy-and-hold money?
High-yielding dividend growth stocks have proved to be the best investments over the past 50 years, beating out all other stocks by a hefty market.
ETFs represent a simple, low-cost mean of instantly diversifying your portfolio across industries, sectors, and geographies to offer a balanced growth and income portfolio.
Sit back and let dividends do the heavy lifting for a simple, steady path to serious wealth creation over time. Grab a free copy of “2 Legendary High-Yield Dividend Stocks“ now.
24/7 Wall St. Insights:
Putting your money to work for you
An excellent place to put your money to work is in dividend growth stocks. History shows that companies that initiate a dividend and then grow them over time have outperformed all other classes of stocks by a fairly wide margin.
Data from Hartford Funds and Ned Davis Research shows dividend growth stocks on the S&P 500 returned 10.2% on average over the past 50 years while non-payers returned just 4.3% annually.
Dividend growth stocks offer both income and capital appreciation, giving you the best of both worlds. The research also indicates high-yielding dividend stocks tend to outperform lower yielding stocks too.
One of the best ways to get exposure to these top-performing stocks is through exchange-traded funds (ETFs). They provide investors with a broad basket of top-notch companies that offer instant diversity across size, industry, and geographic location, giving you a better balanced portfolio.
Below are two of the top high-yield, dividend-paying ETFs you can buy today.
Vanguard High Yield Dividend Index ETF (VYM)
The Vanguard High Dividend Yield ETF (NYSEARCA:VYM) stands out as a leading long-term buy-and-hold option for investors seeking income and growth. With $76 billion in assets, VYM tracks the FTSE High Dividend Yield Index, holding 529 stable, dividend-paying stocks spread across financials (22.9%), industrials (11.9%), and healthcare (11.5%), while delivering a 2.5% yield.
That’s $2,530 annually on a $100,000 stake, nearly double the S&P 500’s 1.3% yield. Moreover, its 0.06% expense ratio keeps costs razor-thin, letting dividends compound over decades. Since inception in 2006, VYM has averaged cumulative returns of 370%, blending income with steady growth.
Unlike growth-heavy ETFs, its value tilt — 19.8 P/E ratio versus the S&P 500’s 28.5x — offers a buffer in downturns. VWY’s 2022 dip of 0.37% beat the benchmark index’s 18% plunge. Risks like rate hikes or sector slumps exist, but VYM’s diversified blue-chip base Broadcom (NASDAQ:AVGO), JPMorgan Chase (NYSE:JPM), and Exxon Mobil (NYSE:XOM) are its top three holdings — ensures resilience. For a retiree or patient investor, VYM’s a cash-flow machine that grows quietly, year after year.
SPDR Portfolio S&P 500 High Dividend ETF (SPYD)
The SPDR Portfolio S&P 500 High Dividend ETF (NYSEARCA:SPYD) is the second high-yield dividend ETF for investors seeking reliable long-term income and modest growth. With $6.8 billion in assets, SPYD tracks the S&P 500 High Dividend Index, holding 80 of the highest-yielding S&P 500 stocks, equally weighted across real estate (23.6%), utilities (17.9%), and consumer staples (14.9%). Its 4.5% yield outshines the S&P 500 by almost three-to-one, delivering steady quarterly payouts.
It also sports a very low 0.07% expense ratio, or $7 per $10,000, meaning costs stay low, maximizing returns. Since its 2015 launch, SPYD’s averaged 9.4% annualized returns, balancing income with growth. Though it lagged in 2022’s tech rally, its 4.3% 2025 YTD gain signals it remains a solid choice. Risks like dividend cuts or rate shifts exist, but SPYD’s diversified, high-yield focus makes it a bedrock for income-driven portfolios.
No one stock commands a dominating spot in the portfolio, with its top three positions of CVS Health (NYSE:CVS), AT&T (NYSE:T), and Philip Morris International (NYSE:PM) all around 1.6% of the total.
The post 2 Stellar High-Yield Dividend ETFs to Buy For Your Growth and Income Portfolio appeared first on 24/7 Wall St..
