If you’re retired—or planning to retire soon—your biggest financial goal is simple:
👉 steady income without stress.
Dividend ETFs are one of the smartest tools for retirees because they allow you to earn regular cash flow without selling your investments. In this interactive guide, I’ll walk you through the 10 best dividend ETFs for retirees, explaining each one clearly, just like a financial advisor would.
Each section is designed to be a single step.
Let’s begin 👇
10 Best Dividend ETFs For Retirees
1: Schwab U.S. Dividend Equity ETF (SCHD)
Let’s start with one of the most trusted dividend ETFs for retirees.
Why retirees love it:
This ETF focuses on strong U.S. companies with a long history of paying and growing dividends. It balances income + stability, which is perfect for retirement.
Typical dividend yield: Around 3.5% (can change yearly)
Simple income example
If you invest $100,000:
- $100,000 × 3.5% = $3,500 per year
- That’s about $292 per month
This ETF works well as a foundation for a retirement portfolio.
2: Vanguard High Dividend Yield ETF (VYM)
This ETF focuses on large, well-known companies that pay above-average dividends.
Why it’s good for retirees:
- Strong companies
- Diversified sectors
- Reliable income
Typical dividend yield: Around 2.8%
Income example
If you invest $75,000:
- $75,000 × 2.8% = $2,100 per year
- About $175 per month
This ETF is ideal if you want steady income without taking high risk.
3: Vanguard Dividend Appreciation ETF (VIG)
Some retirees don’t just want income today—they want income that grows over time.
That’s where this ETF shines.
What makes it special:
It invests in companies that consistently increase their dividends year after year.
Starting yield: Around 1.7%, but it grows.
Example
If you invest $80,000:
- Initial income: $80,000 × 1.7% = $1,360/year
- If dividends grow to 2.5% later:
- $80,000 × 2.5% = $2,000/year
This is perfect for early retirees who want rising income later.
4: Vanguard International High Dividend Yield ETF (VYMI)
Relying only on U.S. companies can limit diversification. This ETF brings international dividend income.
Why retirees consider it:
- Global exposure
- Often higher dividend yields
- Currency diversification
Typical yield: Around 4.5%
Income example
If you invest $60,000:
- $60,000 × 4.5% = $2,700 per year
- That’s $225 per month
This ETF helps spread risk while boosting income.
5: iShares Select Dividend ETF (DVY)
This ETF focuses on companies with a strong and stable dividend history.
Best for retirees who want:
✔ Predictability
✔ Long dividend records
✔ Less volatility
Typical yield: Around 3.7%
Example
Investment of $70,000:
- $70,000 × 3.7% = $2,590 per year
- About $216 per month
This ETF fits well for retirees who value dependable cash flow.
6: iShares Core High Dividend ETF (HDV)
This ETF selects companies based on financial strength, not just high yields.
Why that matters in retirement:
High yield is useless if dividends get cut. This ETF focuses on quality first.
Typical yield: Around 3.1%
Income example
If you invest $90,000:
- $90,000 × 3.1% = $2,790 per year
- Roughly $232 per month
This ETF helps you sleep better during market downturns.
7: SPDR S&P Dividend ETF (SDY)
This ETF includes companies that have paid dividends for many consecutive years.
Why retirees like it:
- Proven dividend history
- Balanced yield
- Lower risk of dividend cuts
Typical yield: Around 2.4%
Example
Investment of $85,000:
- $85,000 × 2.4% = $2,040 per year
- About $170 per month
It’s not the highest yield—but it’s reliable.
8: Invesco High Dividend Low Volatility ETF (SPHD)
This ETF is designed for investors who want high income with fewer ups and downs.
Why it works for retirees:
- Focus on low-volatility stocks
- Monthly income potential
- Higher yield
Typical yield: Around 4%
Income example
If you invest $55,000:
- $55,000 × 4% = $2,200 per year
- Around $183 per month
This ETF is popular among retirees who prefer smooth returns.
9: Fidelity High Dividend ETF (FDVV)
This ETF blends current income and dividend growth.
Why it’s useful:
- Broad exposure
- Reasonable yield
- Growth potential
Typical yield: Around 2.9%
Example
If you invest $75,000:
- $75,000 × 2.9% = $2,175 per year
- Nearly $181 per month
It fits well as a supporting ETF in a retirement portfolio.
10: Schwab Fundamental International Equity ETF (FNDF)
This ETF focuses on international value stocks that pay dividends.
Why retirees include it:
- Global diversification
- Value-based selection
- Solid income potential
Typical yield: Around 3.4%
Income example
If you invest $65,000:
- $65,000 × 3.4% = $2,210 per year
- About $184 per month
It helps balance U.S. exposure while maintaining income.
How Much Can Retirees Earn From Dividend ETFs?
Let’s look at a realistic retirement income goal.
Goal
You want $30,000 per year from dividends.
Assumption
Average portfolio yield = 3.5%
Required investment
- $30,000 ÷ 3.5% ≈ $857,000
By spreading this amount across multiple dividend ETFs, you reduce risk and improve income stability.
Also Read: 9 Worst Real Estate Moves You Think Are Safe
Advisor’s Final Advice for Retirees
✔ Don’t chase only high yields
✔ Focus on dividend sustainability
✔ Diversify across U.S. and international ETFs
✔ Reinvest dividends early, spend later
✔ Review your income yearly
Dividend ETFs won’t make you rich overnight—but they can pay your bills peacefully for decades.
