Not all S&P 500 dividend ETFs are created equal. We ranked the top 7 by yield, quality, performance, and cost to help you pick the right one.
| Rank | ETF | Yield | Expense | Holdings | 5Y Return |
|---|---|---|---|---|---|
#1 | SCHD | 3.45% | 0.06% | 103 | 11.5% |
#2 | NOBL | 2.05% | 0.35% | 68 | 10.2% |
#3 | SDY | 2.52% | 0.35% | 136 | 9.8% |
#4 | SPYD | 4.35% | 0.07% | 80 | 8.4% |
#5 | DVY | 3.62% | 0.38% | 100 | 8.9% |
#6 | DGRO | 2.32% | 0.08% | 420 | 10.8% |
#7 | RDVY | 1.72% | 0.50% | 50 | 13.1% |
Data as of Q1 2026. Returns are annualized total returns including reinvested dividends.
Yield
3.45%
Expense Ratio
0.06%
AUM
$63B+
Div Growth
12.1%
SCHD earns the top spot through its exceptional combination of quality screening, dividend growth, and rock-bottom costs. Its Dow Jones U.S. Dividend 100 Index methodology filters for cash flow, ROE, yield, and 5-year dividend growth, resulting in a portfolio of financially strong companies.
Yield
2.05%
Expense Ratio
0.35%
AUM
$12B+
Min Streak
25 Years
NOBL holds only S&P 500 companies that have increased their dividend for at least 25 consecutive years. This elite group of "Dividend Aristocrats" includes names like Johnson & Johnson, Coca-Cola, Procter & Gamble, and 3M. Equal weighting prevents any single stock from dominating.
Yield
2.52%
Expense Ratio
0.35%
AUM
$22B+
Min Streak
20 Years
SDY tracks the S&P High Yield Dividend Aristocrats Index, requiring 20+ years of consecutive dividend increases. Unlike NOBL, SDY weight stocks by yield rather than equally, which gives higher yields but more concentration in slower-growth sectors. With 136 holdings, it also includes some mid-cap companies that NOBL excludes.
Yield
4.35%
Expense Ratio
0.07%
AUM
$7.5B+
Strategy
Top 80 Yield
SPYD takes the simplest approach: select the 80 highest-yielding stocks in the S&P 500 and equal-weight them. This produces the highest yield of any S&P 500 dividend ETF at 4.35%, with a rock-bottom 0.07% expense ratio. The trade-off is no quality screening, which means some yield traps may sneak in.
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Yield
3.62%
Expense Ratio
0.38%
AUM
$19B+
Min Streak
5 Years
DVY selects 100 stocks based on dividend yield, payout ratio, and 5-year dividend growth. It has a strong tilt toward utilities (28%) and financials (20%), which provides high income but has historically lagged on total returns. The 0.38% expense ratio is one of the highest in this group.
Yield
2.32%
Expense Ratio
0.08%
AUM
$28B+
Holdings
420
DGRO focuses on companies with at least 5 years of consecutive dividend growth and sustainable payout ratios. With 420 holdings and a 0.08% expense ratio, it provides broad, cost-effective exposure to dividend growers. Its tech allocation (~18%) is higher than most dividend ETFs, giving it more growth potential.
Yield
1.72%
Expense Ratio
0.50%
AUM
$10B+
Strategy
Growth + Div
RDVY takes a unique approach, selecting 50 stocks based on rising dividends, earnings growth, and low debt. Despite the lowest yield on this list (1.72%), it has delivered the best total returns at 13.1% annualized over 5 years. The 0.50% expense ratio is the highest, but performance has justified the cost for growth-oriented dividend investors.
Choose SPYD (4.35%) or DVY (3.62%)
Best for retirees needing income now
Choose SCHD (12.1% annual growth)
Best for long-term income compounding
Choose NOBL (25+ year streaks only)
Best for safety-first investors
Choose RDVY (13.1% 5Y return) or SCHD (11.5%)
Best for total wealth building
SCHD ranks as the best overall S&P 500 dividend ETF due to its exceptional combination of quality screening, strong dividend growth (12%+), competitive yield (3.45%), and ultra-low expense ratio (0.06%). It consistently balances income, growth, and risk management.
SPYD (SPDR Portfolio S&P 500 High Dividend) offers the highest yield at approximately 4.35%. It achieves this by holding the 80 highest-yielding S&P 500 stocks. However, higher yield comes with lower total returns and no quality screening.
Yes, S&P 500 dividend ETFs are excellent retirement building blocks. They provide regular income, inflation protection through dividend growth, lower volatility than the broad market, and exposure to financially stable companies. Most retirees benefit from a combination of dividend ETFs.
Generally no. Most S&P 500 dividend ETFs have significant overlap (30-60% shared holdings). Owning two or three adds complexity without much diversification benefit. Instead, pair one S&P 500 dividend ETF with international or bond ETFs for true diversification.
At current yields: SPYD generates ~$4,350/year, SCHD ~$3,450, DVY ~$3,620, SDY ~$2,520, DGRO ~$2,320, NOBL ~$2,050, and RDVY ~$1,720. These amounts grow annually as companies raise dividends.