Best High Dividend ETFs with Growth Potential: SCHD, DGRO, VYM

Are you looking for steady dividend income but want more than just monthly payouts? The ETFs we are introducing today offer not only high dividend yields but also strong long-term price appreciation. While they may not provide paycheck-like monthly income, these quarterly dividend ETFs can be the perfect choice for long-term investors aiming for compounded returns.

See SCHD, DGRO, VYM Full Analysis

SCHD – The Perfect Balance of Dividend Income and Growth

SCHD (Schwab U.S. Dividend Equity ETF) has become one of the most popular high dividend ETFs in the market. It offers an attractive annual dividend yield of approximately 3.5% to 4.0% while consistently delivering more than 10% average annual total returns over the past decade.

• Pays quarterly dividends
• Very low expense ratio of just 0.06%
• Top holdings include Broadcom, Home Depot, and PepsiCo
• Focuses on financially sound companies with consistent dividend growth

It’s an excellent option for investors who want both steady income and long-term capital gains.

DGRO – Ideal for Growth-Focused Dividend Investors

DGRO (iShares Core Dividend Growth ETF) selects companies that have consistently increased dividends for at least five consecutive years. While its dividend yield is slightly lower at 2.5% to 2.8%, its higher allocation to technology and financial stocks provides substantial growth potential.

• Quarterly dividend payouts
• Top holdings include Microsoft, Apple, and JPMorgan
• Combines growth and stability for balanced long-term investing

Perfect for younger investors who want to build wealth through compound growth while still receiving regular dividends.

VYM – A Safe High Dividend Value ETF

VYM (Vanguard High Dividend Yield ETF) focuses on large-cap, stable value companies that consistently pay high dividends. With a dividend yield around 3.2% and lower price volatility, it is particularly attractive to conservative investors seeking reliable income.

• Pays dividends quarterly
• Top holdings include Johnson & Johnson, ExxonMobil, and JPMorgan
• Best suited for conservative, income-oriented portfolios

For investors who prioritize stability and predictable returns, VYM is a solid choice.

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Conclusion – Quarterly Dividends with Strong Long-Term Growth

While monthly dividend ETFs are currently trending, these quarterly dividend ETFs offer excellent growth and income potential. SCHD, DGRO, and VYM each have distinct strengths depending on your investment preferences.

• SCHD: Balanced approach to high dividends and growth
• DGRO: Growth-driven dividend investing
• VYM: Conservative, stable income strategy

If you’re looking for long-term compounding returns, these ETFs remain very attractive options, even without monthly payouts.