7 Dividend ETFs to Buy With $2,000 and Hold Forever -- Including the Schwab U.S. Dividend Equity ETF (SCHD)

3 months ago 34

Selena Maranjian, The Motley Fool

Mon, December 15, 2025 astatine 3:20 AM CST 5 min read

Each of these exchange-traded funds offers dividend payments.
The dividend yields alteration greatly, though, arsenic bash the mean yearly returns.
You mightiness bash good to put successful respective of the funds alternatively of conscionable one.
10 stocks we similar amended than Schwab U.S. Dividend Equity ETF ›

So you've got $2,000 to put -- oregon possibly $20,000 oregon more. Where should you put it? I'd similar to suggest immoderate dividend-focused exchange-traded funds (ETFs) -- funds that commercialized similar stocks. Each is invested successful a scope of dividend-paying stocks.

It's hard to bushed dividend-paying stocks due to the fact that steadfast and increasing ones connection 3 ways to profit:

Their banal terms volition apt admit implicit time
They volition present income via dividends.
Their dividends volition apt summation implicit time.

If you're not yet sold connected the thought of dividends, cheque retired the array below:

Dividend-Paying Status

Average Annual Total Return, 1973-2024

Dividend growers and initiators	10.24%
Dividend payers	9.20%
No alteration successful dividend policy	6.75%
Dividend non-payers	4.31%
Dividend shrinkers and eliminators	(0.89%)
Equal-weighted S&P 500 index	7.65%

Data source: Ned Davis Research and Hartford Funds.

Clearly, dividend payers tin beryllium almighty contributors to your portfolio's growth.

There are much than a fewer coagulated income-producing ETFs retired there. You'll find 7 of them beneath -- including a elemental S&P 500 scale money and an ETF focused connected preferred stocks, which thin to diagnostic precocious dividends but small stock-price appreciation.

ETF

Recent Yield

5-Year Avg. Annual Return

10-Year Avg. Annual Return

15-Year Avg. Annual Return

iShares Preferred & Income Securities ETF (NASDAQ: PFF)	6.63%	1.71%	3.53%	4.39%
State Street SPDR Portfolio S&P 500 High Dividend ETF (NYSEMKT: SPYD)	4.46%	9.96%	9.01%	N/A
Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD)	3.74%	8.56%	11.46%	N/A
Fidelity High Dividend ETF (NYSEMKT: FDVV)	3.02%	16.03%	N/A	N/A
iShares Core Dividend Growth ETF (NYSEMKT: DGRO)	1.98%	11.72%	13.03%	N/A
Vanguard Dividend Appreciation ETF (NYSEMKT: VIG)	1.59%	11.70%	13.10%	12.36%
Vanguard S&P 500 ETF (NYSEMKT: VOO)	1.12%	14.91%	14.76%	14.17%

Source: Morningstar.com, arsenic of December 9, 2025.

Here are a fewer words astir immoderate of these funds:

While astir dividend-focused ETFs are invested successful shares of regular, communal stock, this ETF is invested successful preferred stock. Preferred banal tends to diagnostic fixed dividends arsenic opposed to dividends that turn each twelvemonth oregon so, but its payouts thin to beryllium reasonably generous.