6 Best Dividend ETFs for Blue-Chip Income

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Large-cap dividend ETFs are a popular way to invest for income, with these exchange-traded funds providing access to hundreds if not thousands of dividend-paying blue chip stocks, often at extremely low annual costs.

What makes these ETFs particularly attractive is that they focus on high-quality yield, rather than on the highest (and often riskiest) yield.

The large-cap nature of these ETFs’ holdings means you’re investing mostly in companies that have attractive balance sheets and ample cash flow. That, in turn, means you’re getting stocks that are more likely to hold up in market downturns thanks in part to their income, but also because the companies they represent are less likely to collapse than smaller businesses with shallower financial resources.

In fact, some of these ETFs even use dividends as a measure of quality, relying on the idea that a company that has made regular cash payouts for several years is more financially stable than those that do not.

Looking to fortify your dividend portfolio? Here’s a look at six large-cap dividend ETFs that provide ideal blends of income and durability.

Data is as of Oct. 3, 2017. Click on ticker-symbol links in each slide for current share prices and more. Yields represent the trailing 12-month yield, which is a standard measure for equity funds.

Kyle Woodley
Senior Investing Editor, Kiplinger.com

Kyle is senior investing editor for Kiplinger.com. As a writer and columnist, he also specializes in exchange-traded funds. He joined Kiplinger in September 2017 after spending six years at InvestorPlace.com, where he managed the editorial staff. His work has appeared in several outlets, including U.S. News & World Report and MSN Money, he has appeared as a guest on Fox Business Network and Money Radio, and he has been quoted in MarketWatch, Vice and Univision, among other outlets. He is a proud graduate of The Ohio State University, where he earned a BA in journalism.