3 High-Yield Dividend ETFs to Buy Today
- - 3 High-Yield Dividend ETFs to Buy Today
David Dierking, The Motley FoolDecember 25, 2025 at 10:20 PM
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Key Points -
With the markets showing signs of rotating away from tech, high-yield dividend stocks are worth another look.
ETFs focused on international dividend-paying stocks look particularly attractive at the moment.
The JPMorgan Equity Premium Income ETF has historically performed well during rotations into defensive equities.
10 stocks we like better than JPMorgan Equity Premium Income ETF ›
High-yield products appear to be gaining in popularity in 2025. Most of the excitement is centered around the single-stock, leveraged, and derivative income funds that are highly volatile and highly risky, but also offer attractive yields.
I still prefer the more traditional high-income products. ETFs that invest in equities with above-average yields or use conservative covered-call strategies are ideally suited to deliver consistent high yield without putting your capital at significant risk.
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As we close the books on 2025 and move forward into 2026, we're starting to see signs that the megacap tech rally is losing momentum and the market is beginning to broaden. That means opportunities could emerge outside of what's in the spotlight today.
Rolled-up dollar bills with note that says dividends.
Image source: Getty Images.
Here are three high-yield dividend ETFs I believe are worth consideration today, each for a different reason.
1. JPMorgan Equity Premium Income ETF
The JPMorgan Equity Premium Income ETF (NYSEMKT: JEPI) hasn't necessarily been out of the spotlight, but it hasn't been garnering the returns it once did. But in the right environment, like the one we experienced in 2022, it can perform exceptionally well.
JEPI starts with a primarily defensive equity portfolio and layers on out-of-the-money S&P 500 (SNPINDEX: ^GSPC) call options to generate high income. Yields can vary depending on conditions and market volatility, but the current yield of 8.2% (as of Nov. 30) isn't uncommon for this ETF.
How well this fund can perform depends on how well defensive-oriented stocks are performing. When tech and artificial intelligence (AI) stocks are leading, as they have for a while now, JEPI tends to underperform. If we enter more of a risk-off environment where investors are seeking safety, that's where JEPI can really shine.
With the U.S. economy showing signs of slowing down and the labor market weakening, the JPMorgan Equity Premium Income ETF could be setting up to do very well.
2. SPDR Portfolio S&P 500 High Dividend ETF
The strategy of the SPDR Portfolio S&P 500 High Dividend ETF (NYSEMKT: SPYD) is very simple: Invest in the 80 highest-yielding stocks of the S&P 500 and equal-weight them. It's one of the purest ways of generating high yield from large-cap stocks.
This methodology helps produce a portfolio that's very different from the S&P 500, one that emphasizes REITs, financials, and consumer staples stocks. That makes it a good diversifier. Targeting stocks purely by yield can have its drawbacks, but the fact that SPYD only looks at S&P 500 stocks helps mitigate some of that risk. It currently yields 4.7% (as of Dec. 19).
Here are the risks. There are no screens for dividend quality or dividend growth to act as a cross-check. That means yield traps could show up in the portfolio. These are yields that are high because the share price has dropped significantly or may be at risk of a dividend cut.
Overall, the combination of high yield from more defensive large-cap stocks looks promising in a market that is showing signs of shifting away from tech and growth.
3. iShares International Select Dividend ETF
For the first time in a while, international stocks demonstrated their value in 2025. They beat the S&P 500 as interest rates fell, the dollar weakened, and overall fundamentals improved. Given how long U.S. stocks have dominated the world stage, we could be in the early stages of a renaissance for overseas investments.
For income seekers, the iShares International Select Dividend ETF (NYSEMKT: IDV) is also a yield-focused portfolio of about 100 stocks, but it adds screens for quality and dividend history, including positive earnings per share, a growing dividend per share, and adequate dividend coverage. That multipronged approach should help the current 4.5% yield become more durable and reliable over the long term.
The diversification provided by international stocks and the value aspect of the portfolio could be its biggest selling points right now. It tilts heavily toward some of the world's biggest names, including British American Tobacco and Rio Tinto. IDV also trades at just 12 times earnings, helping to create some built-in downside protection should economic conditions head south.
Individually or collectively, each of these high-yield dividend ETFs would be a great addition to an income seeker's portfolio.
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David Dierking has no position in any of the stocks mentioned. The Motley Fool recommends British American Tobacco P.l.c. and recommends the following options: long January 2026 $40 calls on British American Tobacco and short January 2026 $40 puts on British American Tobacco. The Motley Fool has a disclosure policy.
Source: “AOL Money”
