3 High Dividend ETFs You Can Buy for $25,000 and Hold Forever

Investing in exchange traded funds (ETFs) has never been easier. That said, there are so many ETFs to choose from that it can be confusing for some investors.

Now, let’s take a look at three high-dividend ETFs that income-seeking investors might consider.

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Energy Choice Sector SPDR Fund

Number one on my list is that much Energy Choice Sector SPDR Fund (XLE -0.28%). This ETF is Great It is chosen by investors seeking income for a number of reasons.

First, we focus on the energy sector, an industry filled with highly valued, high-dividend stocks. Fund’s holdings It consists almost entirely of of U.S. energy sector companies such as drillers, pipeline operators, and oil refineries.

The highest holdings are: ExxonMobil, chevronand EOG resource.

Second, the fund’s operating ratio is 0.09%, meaning investors rarely give up fees. For example, if you invest $10,000, you’ll pay only $9 in annual fees. This means that investors keep more of the profits generated by these funds. Moreover, with a current dividend yield of 3.1%, the fund ranks higher than many of its ETF peers.

Moreover, this ETF has a history that dates back to the last century. oWith over 25 years of history, the fund has achieved a compound annual growth rate (CAGR) of 8.4%. An initial investment of $25,000 in 1998 would be worth $191,000 today.

Simply put, this ETF focuses on the cheapest stocks on Wall Street, combining solid yields and dividends with low expenses. What’s not to love about income-oriented investors?

JPMorgan Equity Premium Income Fund

Here are some funds with unique value propositions. We don’t just own dividend stocks, we own all types of stocks. Nonetheless, it generates a respectable dividend yield of 7.3%.

how JPMorgan Equity Premium Income Fund (often 0.04%) like that? This is achieved through the power of stock options. In particular, the Fund uses a covered call strategy in which the fund manager sells out-of-the-money call options on the fund’s core stock holdings.

As a result, the fund generates cash from the sale of stock options, which Then it will pass Dividends are paid to investors.

In this way, the fund can generate income from stocks that pay little or no dividends. For example, one of the fund’s top holdings is: AmazonStocks that have never been paid for dividend.

Launched in 2020, this fund is still relatively new. However, initial results were positive, with a CAGR of 12.9%. Your initial investment of $25,000 would have already grown to $40,000 today.

For fees, the fund charges an expense ratio of 0.35%. expected Considering how the fund operates. Still, that’s only $35 per year per $10,000 invested.

Therefore, for income-seeking investors who want to diversify away from traditional value stocks.This ETF is one of the ETFs to consider.

electric potential High dividend Produce index ETF

finally, electric potential High dividend Produce index ETF (VYM -0.05%). This index fund focuses on large-cap stocks. the suggestion Stability and high dividend yield. With over 400 holdings, the fund offers investors a variety of stocks.

Its holdings come from a variety of sectors, including consumer discretionary, energy, and industrials. The highest holdings are:

Launched in 2006, the fund’s lifetime total return CAGR is 8.4%. This means your initial investment of $25,000 has now grown to $102,000.

This fund has a high expense ratio of 0.06%. Investors pay only $6 per year for every $10,000 invested.

On the income side, the fund currently boasts a dividend yield of 2.9%. That may seem low for an income-producing ETF, but remember that the selling point of these funds is the quality of their holdings. Instead of investing in latecomers with high dividend yields, these funds are higher up the stock food chain. It owns well-run companies that have the potential to deliver solid long-term results as well as large dividends.