The Invesco KBW High Dividend Yield Financial ETF (KBWD) currently offers a staggering 13.59% annual dividend yield, paid out monthly, making it a standout for income-focused investors seeking consistent cash flow.
High-Yield Equity ETFs Offer Diverse Strategies for Income Investors
Table of Contents
- High-Yield Equity ETFs Offer Diverse Strategies for Income Investors
- Invesco KBW High Dividend Yield Financial ETF (KBWD)
- iShares Emerging Markets Dividend ETF (DVYE)
- Global X SuperDividend ETF (SDIV)
- FT Vest S&P 500 Dividend Aristocrats Target Income ETF (KNG)
- Cullen Enhanced Equity Income ETF (DIVP)
- Global X SuperDividend U.S. ETF (DIV)
- FlexShares International Quality Dividend Dynamic Index Fund (IQDY)
- FlexShares International Quality Dividend Index Fund (IQDF)
- Global X MSCI SuperDividend Emerging Markets ETF (SDEM)
- Schwab US Dividend Equity ETF (SCHD)
- The Bottom Line
Discover top equity ETFs yielding 6% to 13%+, featuring monthly payouts and diverse investment strategies for robust income generation.
- Several high-yield equity ETFs are delivering annual dividend yields ranging from 6.32% to an impressive 13.59%.
- These funds offer diverse strategies, from monthly income generation to global diversification and covered call overlays.
- Key considerations include dividend frequency, expense ratios, and the underlying investment approach.
- Investors can find options for aggressive yield hunting, balanced growth and income, and stable, consistent payouts.
Dividend investing remains a smart strategy for building wealth and generating steady income. Right now, several equity exchange-traded funds (ETFs) are particularly compelling, offering yields often exceeding 6%, 8%, or even 10%. These funds provide not just high payouts but also consistency and well-defined strategies, catering to a range of income-focused investors.
Invesco KBW High Dividend Yield Financial ETF (KBWD)
- Price as of Aug. 29, 2025: $14.13
- Dividend Frequency: Monthly
- Annual Dividend Yield as of Aug. 29, 2025: 13.59%
- Expense Ratio as of Aug. 29, 2025: 4.93%
- 52‑Week Range as of Aug. 29, 2025: $11.34 – $14.70
- YTD Return as of Aug. 29, 2025: 4.53%
For those prioritizing significant income, the Invesco KBW High Dividend Yield Financial ETF (KBWD) stands out. Its 13.59% annual dividend yield, distributed monthly, offers substantial cash flow. While its 4.93% expense ratio is notable, and it holds riskier small- and mid-cap financial firms, this trade-off fuels its outsized income. Investors willing to accept some volatility for boosted portfolio yield will find KBWD attractive.
- Price as of Aug. 29, 2025: $29.77
- Dividend Frequency: Quarterly
- Annual Dividend Yield as of Aug. 29, 2025: 10.35%
- Expense Ratio as of Aug. 29, 2025: 0.49%
- 52‑Week Range as of Aug. 29, 2025: $23.21 – $30.11
- YTD Return as of Aug. 29, 2025: 18.79%
Seeking high yield with global diversification? The iShares Emerging Markets Dividend ETF (DVYE) offers a compelling blend. It boasts a 10.35% annual dividend yield, paid quarterly, providing reliable cash flow while exposing investors to emerging market growth. Its 0.49% expense ratio is competitive. DVYE’s focus on dividend-paying companies often translates to greater stability in these markets. The ETF’s 18.79% year-to-date return demonstrates that income potential can coexist with growth.
Global X SuperDividend ETF (SDIV)
- Price as of Aug. 29, 2025: $23.86
- Dividend Frequency: Monthly
- Annual Dividend Yield as of Aug. 29, 2025: 9.73%
- Expense Ratio as of Aug. 29, 2025: 0.58%
- 52‑Week Range as of Aug. 29, 2025: $17.26 – $24.06
- YTD Return as of Aug. 29, 2025: 23.18%
The Global X SuperDividend ETF (SDIV) is a strong choice for consistent income and global exposure. It pays a nearly 10% annual yield (9.73%) monthly, offering steady cash flow from 100 high-yielding companies worldwide. Its 0.58% expense ratio is reasonable for its global reach, and an equal-weighted approach ensures diversification. SDIV’s 23.18% YTD return highlights its ability to deliver both income and growth.
FT Vest S&P 500 Dividend Aristocrats Target Income ETF (KNG)
- Price as of Aug. 29, 2025: $50.36
- Dividend Frequency: Monthly
- Annual Dividend Yield as of Aug. 29, 2025: 8.77%
- Expense Ratio as of Aug. 29, 2025: 0.75%
- 52‑Week Range as of Aug. 29, 2025: $43.05 – $51.29
- YTD Return as of Aug. 29, 2025: 6.22%
For dependable income from proven dividend growers, consider the FT Vest S&P 500 Dividend Aristocrats Target Income ETF (KNG). This ETF combines the stability of Dividend Aristocrats—companies with over 25 years of dividend growth—with a buy-write strategy that enhances income by selling covered calls. The result is an 8.77% annual yield, paid monthly, significantly outperforming the S&P 500 average. The 0.75% expense ratio reflects its active strategy designed for steady cash flow and limited downside.
Cullen Enhanced Equity Income ETF (DIVP)
- Price as of Aug. 29, 2025: $25.63
- Dividend Frequency: Monthly
- Annual Dividend Yield as of Aug. 29, 2025: 7.09%
- Expense Ratio as of Aug. 29, 2025: 0.55%
- 52‑Week Range as of Aug. 29, 2025: $22.36 – $26.67
- YTD Return as of Aug. 29, 2025: 6.15%
The Cullen Enhanced Equity Income ETF (DIVP) balances monthly income with equity growth potential. It offers a 7.09% yield paid monthly, combining dividends from high-quality large-cap stocks with option premiums. Notably, it writes options on only 25–40% of holdings, capturing extra income without overly capping upside. The 0.55% expense ratio is reasonable for its active management approach, providing a disciplined path to steady payouts.
Global X SuperDividend U.S. ETF (DIV)
- Price as of Aug. 29, 2025: $17.89
- Dividend Frequency: Monthly
- Annual Dividend Yield as of Aug. 29, 2025: 6.51%
- Expense Ratio as of Aug. 29, 2025: 0.45%
- 52‑Week Range as of Aug. 29, 2025: $15.80 – $18.52
- YTD Return as of Aug. 29, 2025: 3.30%
For investors seeking steady income with reduced volatility, the Global X SuperDividend U.S. ETF (DIV) is a solid option. It focuses on 50 of the highest-yielding U.S. equities, offering a 6.51% annual dividend yield monthly. Its low 0.45% expense ratio ensures cost efficiency. DIV boasts an 11-year track record of uninterrupted monthly distributions and uses a methodology screening for low-beta stocks, providing reliable income and lower market swings.
- Price as of Aug. 29, 2025: $33.35
- Dividend Frequency: Quarterly
- Annual Dividend Yield as of Aug. 29, 2025: 6.32%
- Expense Ratio as of Aug. 29, 2025: 0.47%
- 52‑Week Range as of Aug. 29, 2025: $24.84 – $33.90
- YTD Return as of Aug. 29, 2025: 23.14%
The FlexShares International Quality Dividend Dynamic Index Fund (IQDY) provides access to high-quality dividend payers in developed and emerging markets outside the U.S. It offers a 6.32% annual yield, distributed quarterly, with a low 0.47% expense ratio. IQDY prioritizes “dividend quality,” focusing on firms with strong fundamentals and sustainable payouts. It also targets above-market beta for higher returns, while maintaining diversification caps. The fund’s 23.14% YTD return demonstrates its capacity for both yield and growth from international equities.
- Price as of Aug. 29, 2025: $28.25
- Dividend Frequency: Quarterly
- Annual Dividend Yield as of Aug. 29, 2025: 6.04%
- Expense Ratio as of Aug. 29, 2025: 0.47%
- 52‑Week Range as of Aug. 29, 2025: $21.52 – $28.72
- YTD Return as of Aug. 29, 2025: 23.86%
Offering a balanced approach to international income, the FlexShares International Quality Dividend Index Fund (IQDF) yields 6.04% annually, paid quarterly, with a 0.47% expense ratio. Like IQDY, it screens for “dividend quality” and strong fundamentals, capping sector and regional weights for risk reduction. Unlike IQDY, IQDF aims for a beta profile aligned with the broader market. Its 23.86% YTD return shows its potential to combine growth with reliable payouts for global income seekers.
Global X MSCI SuperDividend Emerging Markets ETF (SDEM)
- Price as of Aug. 29, 2025: $28.05
- Dividend Frequency: Monthly
- Annual Dividend Yield as of Aug. 29, 2025: 5.77%
- Expense Ratio as of Aug. 29, 2025: 0.68%
- 52‑Week Range as of Aug. 29, 2025: $22.41 – $28.58
- YTD Return as of Aug. 29, 2025: 20.69%
The Global X MSCI SuperDividend Emerging Markets ETF (SDEM) aims to provide steady income while tapping into emerging market growth. It holds 50 of the highest-yielding stocks in these economies and has a nine-year track record of monthly dividends. Currently yielding 5.77% annually, it also achieved a 20.69% YTD return. The 0.68% expense ratio is reasonable for its focused strategy, which favors stable, income-producing companies. SDEM is a noteworthy option for reliable income and global diversification.
Schwab US Dividend Equity ETF (SCHD)
- Price as of Aug. 29, 2025: $27.87
- Dividend Frequency: Quarterly
- Annual Dividend Yield as of Aug. 29, 2025: 5.50%
- Expense Ratio as of Aug. 29, 2025: 0.06%
- 52‑Week Range as of Aug. 29, 2025: $23.64 – $28.90
- YTD Return as of Aug. 29, 2025: 3.93%
The Schwab US Dividend Equity ETF (SCHD) offers a cost-effective way to earn steady dividend income from top-tier U.S. companies. It yields 5.50% annually, paid quarterly, with an exceptionally low 0.06% expense ratio. SCHD focuses on companies with strong, consistent dividend histories, avoiding speculative investments. This approach invests in proven businesses with stability and growth potential. With a 3.93% YTD return, SCHD serves well as a core holding or a high-yield addition to any portfolio.
The Bottom Line
These high-yield equity dividend ETFs present a diverse toolkit for income-focused investors. Their strategies vary significantly, from prioritizing monthly cash flow to integrating global growth or employing covered call strategies to boost payouts. With yields often between 6% and 13% annually, these ETFs offer flexible avenues for generating reliable cash flow while maintaining growth prospects. The key is selecting the combination that best aligns with individual portfolio objectives.
