Top 7 Highest-Paying Dividend ETFs

Dividends are a favorite tool for investors seeking passive income. Exchange-traded funds (ETFs) that focus on high dividends can supercharge this strategy by bundling dozens of income-generating stocks into one convenient package.

Below we highlight 7 of the highest-yielding dividend ETFs trading on U.S. markets today, each offering a juicy payout.

(Note: Dividend yields are as of mid-2025 and can fluctuate. “Yield” refers to the annual dividend distribution divided by the current share price.)

1. JPMorgan Equity Premium Income (JEPI)

• Dividend Yield: ~7.8% (12-month trailing), paid monthly with some variability
• Fund Size: Around $39 billion in assets
• Strategy: Actively managed covered call ETF – holds S&P 500 stocks and sells options for income
• Top Holdings: Large, diversified companies like Visa, Mastercard, Progressive
• Expense Ratio: 0.35% (low for an active income fund)

JEPI has quickly become a favorite among dividend investors for its high-yield, innovative approach. Instead of just holding dividend-paying stocks, JEPI mixes stocks with equity-linked notes (ELNs) and writes covered call options. The fund aims to collect option premiums and pass them on to shareholders as dividends.

Why JEPI Stands Out

This unique strategy delivers a yield close to 8%, much higher than the S&P 500 average. Dividends are paid monthly, giving investors a steady income stream. What sets JEPI apart is its blend of income and lower volatility. The portfolio includes mostly blue-chip U.S. stocks like Visa, Mastercard, and Microsoft—companies known for their stability.

On top of this solid base, JEPI adds an option-writing strategy to boost income. In strong bull markets, JEPI might lag the S&P 500 since selling calls caps some upside. But in flat or choppy markets, JEPI shines by harvesting steady premiums, smoothing out returns.

Income and Risk Management

Many investors see JEPI as a more conservative way to earn high yield from stocks. Its performance swings are generally smoother than those of traditional high-dividend funds, with less downside during corrections due to the extra option income.

For beginners, JEPI’s strategy might sound complex, but the key point is simple: it turns market volatility into monthly cash flow. The huge asset base shows that even cautious investors have embraced it. With a reasonable 0.35% expense ratio, JEPI delivers attractive yield without excessive risk.

What to Keep in Mind

JEPI’s monthly dividend can vary based on market conditions, since option income isn’t guaranteed. And while it focuses on stable, large companies, it’s not immune to big market downturns. Also, as an actively managed fund, investors should keep an eye out for any changes in its strategy.

Overall, JEPI offers a compelling mix of income, lower volatility, and equity exposure—making it a solid choice for income-focused investors.

2. Global X Nasdaq 100 Covered Call (QYLD)

• Dividend Yield: ~12–14% (trailing twelve-month distribution) – very high, paid monthly.
• Fund Size: About $8.4 billion in assets (a popular choice for income seekers).
• Strategy: Passively tracks the Nasdaq-100 Covered Call index – holds Nasdaq 100 stocks and sells call options on the index.
• Top Holdings: Mirrors the Nasdaq-100 – major tech stocks like Microsoft (~9%), Nvidia (~9%), Apple (~8%), Amazon, Broadcom, etc., with calls written on the index.
• Expense Ratio: 0.60% (higher than a plain equity ETF due to the options strategy).

QYLD is a unique income-generating machine. It tracks the well-known Nasdaq-100 index—think Big Tech stocks—and adds a covered call strategy similar to what JEPI does. QYLD holds all the major Nasdaq-100 names like Microsoft, Apple, Nvidia, Amazon, and Tesla.

Each month, QYLD sells call options on the Nasdaq-100 index. By doing this, it gives up some future upside but earns option premiums, which are then paid to shareholders as hefty monthly distributions. This approach has led to double-digit yields, recently around 12% annualized.

The Trade-Offs of QYLD

For income investors, QYLD’s yield is incredibly attractive—far above most stock or bond ETFs. However, it’s important to understand the downside: QYLD’s strategy will underperform in strong bull markets. If the Nasdaq surges, the calls QYLD sold will get exercised, so it surrenders some of those gains.

Basically, QYLD trades future growth for current income. In sideways or mild markets, this works well. But in big rallies, QYLD can lag the parent index noticeably. Over a full cycle, its total return (price change plus dividends) may be less than just holding the Nasdaq-100 directly. QYLD is designed for income, not maximum growth.

You should also know that most of QYLD’s yield isn’t classic dividends from companies. Instead, it comes from option premiums and sometimes return of capital. This can have tax implications, since option income may not count as qualified dividends, and some payouts could be classified as return of capital. It’s smart to check the tax impact if you hold QYLD in a taxable account.

Why Consider QYLD?

On the plus side, QYLD offers an easy way to get exposure to tech giants with a high-income twist. You’re holding companies like Google, Amazon, and Meta—with extra income. This can be appealing if you want steady cash flow and don’t mind slower growth. The fund is large, liquid, and part of a family of covered-call ETFs (Global X also offers XYLD for the S&P 500 and RYLD for the Russell 2000).

QYLD is a yield powerhouse, generating over 10% yields by monetizing the volatility of tech stocks. It’s best suited for investors who value reliable income over maximizing capital gains. Just remember: when tech stocks take off, QYLD will capture much less of that upside. It’s the classic tortoise-vs-hare scenario—steady income, but not a rocket ship for your principal.

3. Global X SuperDividend ETF (SDIV)

• Dividend Yield: ~10.8% (trailing 12-month yield), paid monthly
• Fund Size: About $815 million in assets
• Strategy: Tracks 100 of the highest-yielding stocks globally with a yield-focused “dogs of the world” approach
• Geographic & Sector Spread: Global – includes U.S., international, and emerging market stocks. Heavy in Financials (~27%) and Energy (~23%), plus Materials, Real Estate, and more
• Expense Ratio: 0.58% (higher, but typical for a niche global fund)

As the name suggests, SDIV is all about high dividends—super-sized. This ETF scans the world for 100 of the top-yielding equities and puts them in one basket. If a stock offers a big dividend and passes some basic stability screens, SDIV probably owns it.

The result? An eclectic mix of holdings. You’ll find small-cap U.S. real estate and finance stocks, international telecoms, emerging-market banks, energy trusts, and more. These aren’t your typical S&P 500 names. SDIV leans into lesser-known, high-yield opportunities from around the globe.

Portfolio and Risk

In 2025, SDIV’s portfolio includes a lot of financial firms (regional banks, asset managers, insurers), energy companies, REITs, and some materials/mining firms. These sectors are well-known for paying higher dividends. By diversifying globally, SDIV taps into regions where dividend yields are naturally higher, such as emerging markets or countries like Australia and the UK.

This broad reach can boost income, but it also brings extra risk—think currency swings or political risk in emerging markets. SDIV is not for the faint of heart.

It’s best for investors chasing maximum income and willing to accept some volatility or limited growth. That ~10% yield is eye-catching, but it often comes from companies under stress or in slow-growth industries. Over time, SDIV’s share price has generally drifted lower as some holdings cut dividends or run into trouble. The fund rebalances quarterly, aiming to swap out struggling stocks, but it can still feel like a “yield trap” at times.

Income vs. Growth

The key point: SDIV sacrifices growth for income. You’ll get a big monthly paycheck, but the fund’s price may not rise—and could fall if high-yield stocks stumble. SDIV works best as a supplement to a broader portfolio, not a core holding.

On the plus side, SDIV gives you instant diversification across markets and sectors, all focused on income. Its global spread can sometimes offset U.S. market moves, offering some diversification. And the monthly dividends are convenient for those seeking regular cash flow.

SDIV is a high-octane dividend play. The yield is hard to match elsewhere, but be mindful of the added volatility and risk to the payouts. Use it as an income booster—just keep an eye on the fund’s holdings and performance over time.

4. Invesco KBW High Dividend Yield Financial ETF (KBWD)

• Dividend Yield: ~13.5% (annualized) – one of the highest among equity ETFs, paid monthly.
• Fund Size: Around $380–400 million in assets (medium size ETF).
• Strategy: Tracks an index of high-yield U.S. financial sector stocks, including business development companies (BDCs), mortgage REITs, regional banks, and other financials with big payouts.
• Top Holdings: Concentrated in niche financials – mortgage REITs like AGNC Investment and MFA Financial; BDCs like PennantPark Investment and Trinity Capital; asset managers such as AllianceBernstein. The top 10 holdings make up about 35% of the fund.
• Expense Ratio: 1.24%, which is relatively high due to the specialized focus.

KBWD is designed purely for income in the financial sector. The idea is simple: gather the highest-dividend-paying financial stocks into one fund. Most of its holdings typically yield 8–12% individually—either because they're required to pay out most of their earnings (as with BDCs and REITs) or their stock prices have dropped. This mix results in an ETF that currently yields about 13%, but such a high yield comes with extra risk.

What’s Inside KBWD?

A large chunk of KBWD is made up of mortgage REITs. These don’t own property; instead, they invest in mortgages and related securities. Examples include Invesco Mortgage Capital, Orchid Island Capital, Dynex Capital, and AGNC Investment. Mortgage REITs can be volatile, especially when interest rates swing, since their business involves borrowing and lending much like banks.

Another significant slice is in BDCs, such as PennantPark and Trinity Capital. These companies lend to small and mid-sized businesses, earning income from those loans. BDCs also offer high yields but can be hit hard if the economy worsens and borrowers struggle.

In short, KBWD invests heavily in high-yield financial instruments. Think of it as a basket of niche lenders and specialty finance companies that generate a lot of cash flow. When economic conditions are good and rates are stable, these investments can perform well. However, if credit tightens or defaults rise, the fund can suffer.

Key Risks and How to Use KBWD

It’s important to know that KBWD is not a broad financial ETF—you won’t find big banks like JPMorgan here. Instead, it focuses on smaller, higher-yield, and often riskier corners of the finance world. That’s why the yield is so eye-catching—you’re taking on more risk. The fund’s returns can be choppy, and sometimes a portion of its distributions may actually be a return of capital if certain holdings can’t fully cover their dividends.

On the positive side, if you’re looking for high current income, KBWD is hard to beat. The fund diversifies across many companies, so you’re not overly exposed to any single lender. It’s also rebalanced quarterly, allowing it to drop companies that cut dividends and add those with higher yields.

KBWD is like a high-yield buffet of financial niche players. It works best in moderation unless you have a deep understanding of mortgage REITs and BDCs. For most investors, it can add extra yield to a dividend portfolio, but expect a bumpier ride and make sure it fits your risk tolerance. This is high-risk, high-reward income investing, so use with care.

5. Invesco KBW Premium Yield Equity REIT ETF (KBWY)

• Dividend Yield: ~9.7% annualized, paid monthly
• Fund Size: About $200–250 million (smaller, niche ETF)
• Strategy: Tracks small- and mid-cap U.S. equity REITs with high dividend yields—focusing on smaller real estate companies that offer big payouts
• Top Holdings: Lesser-known REITs like Global Net Lease (office/industrial), SITE Centers (shopping centers), Brandywine Realty Trust (office), Omega Healthcare (nursing facilities), and Park Hotels & Resorts (hospitality). The top 10 holdings make up about 46% of the fund.
• Expense Ratio: 0.35% (reasonable for a specialized REIT ETF)

KBWY is designed for investors seeking high-yield real estate stocks. REITs are required to pay out most of their income as dividends, but KBWY skips the giants and instead invests in smaller, higher-yielding REITs. These often come from out-of-favor sectors or have elevated payout ratios, which is why the yield approaches 10%—very high for a real estate fund.

What’s Inside KBWY?

The fund's holdings typically include office REITs like Brandywine (think Philly office buildings—a struggling sector with higher yields), retail REITs such as SITE Centers (open-air shopping centers facing e-commerce headwinds), and healthcare REITs like Omega (nursing facilities, which have steady cash flow but face challenges).

There are also specialty REITs—for example, Innovative Industrial Properties, which focuses on cannabis facilities (a niche with high risk and yield). Hospitality REITs like Park Hotels are included too, which can be more sensitive to economic cycles. Global Net Lease stands out for its big dividend, but there are concerns about how sustainable that payout is.

Risks and Investor Profile

KBWY targets the highest-yield corners of the REIT market, often because their prices are depressed or future prospects are uncertain. This means the fund’s dividend is hefty, but not guaranteed—if one of these REITs cuts its dividend, the fund’s income could take a hit.

For those new to REITs, think of KBWY as a real estate income booster. It lets you collect sizable dividends while spreading risk across 30+ names, rather than betting on just one. However, it’s still concentrated in higher-risk real estate sectors, so expect more ups and downs than you’d get with a broader real estate ETF. In tough markets or rising rate environments, these smaller REITs can underperform and their yields may spike for the wrong reasons.

A plus for income seekers: monthly payouts. Unlike most REITs, which pay quarterly, KBWY sends distributions every month, providing smoother cash flow.

Bottom line: KBWY is a yield-focused REIT fund that delivers big income but comes with extra risk. It’s best for those who want real estate exposure with a high-dividend kicker and can handle the volatility. If buying discounted property stocks for the yield sounds appealing, KBWY offers that—along with a steady stream of rent checks.

6. iShares Emerging Markets Dividend ETF (DVYE)

• Dividend Yield: ~11.0% (trailing), paid quarterly. Recent 12-month yield was about 11.3%.
• Fund Size: Around $700 million in assets.
• Strategy: Tracks the Dow Jones Emerging Markets Select Dividend Index, focusing on the 100 highest-yielding stocks in emerging market countries.
• Geographic Exposure: Broad EM coverage, with major allocations often in Asia (about 50%+), Latin America, and countries like China, Brazil, Taiwan, and South Africa.
• Top Holdings: Frequently includes large EM dividend payers such as Petrobras (Brazilian oil), China Construction Bank, high-yield tech or finance names in Taiwan, South African miners, and sometimes Russian stocks (previously). No single stock dominates; the top 10 make up roughly 33% of assets.
• Expense Ratio: 0.49% (average for an EM fund).

If you’re seeking income globally, DVYE is a strong option. The ETF asks, “Where in emerging markets can we find fat dividends?”—then buys those stocks. Emerging markets (EM) include places like China, India, Brazil, and Taiwan. Many companies in these regions may trade at lower valuations, resulting in higher yields or a culture of generous dividend payouts. DVYE captures this by selecting 100 of the highest-yield stocks across EM.

What’s Inside DVYE?

The ETF’s holdings are often state-controlled enterprises, major banks, or resource companies. Think of oil & gas firms like Petrobras in Brazil, which sometimes yield double digits—especially when the government favors dividends. Or large Chinese banks, often yielding 5–6%. You’ll also find telecom companies from Asia or Eastern Europe, miners (like South African or previously Russian names), and occasionally high-dividend Thai or Malaysian firms.

The sector mix leans toward financials, energy, and utilities—areas with more stable cash flows. The yield, north of 10%, is eye-catching.

Risks and Considerations

However, emerging market stocks come with extra volatility and risk. Currency swings can impact your returns, since dividends are paid in local currencies and then converted to USD. Political instability or government intervention—like capping a utility’s rates—can squeeze profits. DVYE’s holdings may also see dividend cuts if commodity prices drop or a crisis hits, as seen in 2020 during COVID.

For beginners, DVYE offers an easy way to add international diversification and boost your portfolio yield. You’re outsourcing stock-picking in far-flung markets to an index: just buy the top yielders. The catch is, top yielders might be clustered in a handful of countries; if those regions falter, the ETF will take a hit. Also, EM markets can underperform U.S. stocks for long stretches (or outperform—these markets are cyclical).

DVYE’s index does screen out obvious “yield traps” by applying some quality filters—the “Select Dividend” part means it looks for consistent payers, not just the highest yield. So, while there’s some focus on sustainability, it’s still a high-yield portfolio, and caution is needed.

Bottom line: DVYE is a high-yield ticket to global markets. It’s a useful diversifier that delivers strong income. Ideal for those wanting exposure outside the U.S. and who are comfortable with the ups and downs of emerging markets. The 11% yield is your reward for accepting higher risk. Consider pairing it with more stable funds to keep your overall portfolio balanced.

7. Alerian MLP ETF (AMLP)

• Dividend Yield: ~7.9% (trailing yield), paid quarterly
• Fund Size: About $10 billion in assets
• Strategy: Tracks the Alerian MLP Infrastructure Index, focusing on major U.S. energy MLPs in the midstream sector (oil & gas pipelines)
• Top Holdings: Concentrated in 15-20 MLPs. Biggest names (~10–13% each) include Enterprise Products Partners (EPD), Energy Transfer (ET), Magellan Midstream (MMP), MPLX LP, Western Midstream, and Sunoco LP
• Expense Ratio: 0.85% (higher than average, common for MLP funds due to their structure and tax handling)

AMLP stands out by focusing on MLPs (master limited partnerships), not traditional dividend-paying corporations. MLPs are well-known for high payouts, since they’re required to pass along most of their earnings and also have certain tax benefits.

AMLP specifically invests in energy infrastructure MLPs—companies that own and operate pipelines, storage, and other midstream oil & gas assets. Think of these businesses as the “toll collectors” of the energy world. They move oil and gas and collect fees, which are then paid out to investors as distributions.

Why Investors Choose AMLP

Yields in this sector are usually high (often 5-10%), and AMLP’s yield sits near 8%. While not the highest, it’s still much better than standard stock indexes. AMLP holds some of the most stable, established MLPs—the “ExxonMobils” of pipelines.

For example, Enterprise Products Partners (EPD) is respected for years of steady distribution growth. Energy Transfer and MPLX also offer sizable payouts and are big players in the space.

One big advantage: AMLP handles the complicated MLP tax paperwork for you. Rather than dealing with K-1 forms, investors in AMLP get a simple 1099. That makes it a favorite for IRAs and retirement accounts, where direct MLP ownership can get messy tax-wise.

Things to Watch Out For

There’s a catch: MLP ETFs like AMLP are taxed as C-corps. This means AMLP itself pays corporate taxes on its gains, which can drag down returns a bit—especially when MLP prices jump. Over time, AMLP may slightly underperform a pure MLP index, but many investors find the convenience worth it.

Risks are tied to the energy sector overall. Midstream MLPs don’t swing as wildly with oil prices as producers, since pipelines earn fees on the volume they transport, not the price of oil. But if oil production drops, pipelines have less to move. There’s also the longer-term question about the future of oil and gas—will demand for these services decline as renewables rise? Many MLPs are adapting, but it’s a risk to keep in mind.

AMLP offers a straightforward income play on energy infrastructure. You’re betting the U.S. will keep producing oil and gas, and these pipeline owners will keep earning steady cash flows. The fund’s large size makes it easy to buy and sell. Don’t expect huge growth—most returns come from those consistent, high distributions.

If you want exposure to energy with less volatility and like the idea of earning almost 8% a year in income, AMLP is worth considering. Just be comfortable with the ups and downs that come with the energy sector.