The simple approach focuses on buying the 10 highest-yielding stocks in the Dow Jones Industrial Average at the beginning of each year and holding them for 12 months. Historically, the strategy has generated competitive returns, strong dividend income, and downside protection during volatile markets. 

After another solid showing in 2025, the Dogs of the Dow are once again proving their value in 2026, with several of this year’s top-yielding Dow components already posting impressive gains. Here’s a closer look at how the strategy performed last year, how it’s doing so far in 2026, and why income-focused investors continue to rely on this time-tested investing approach.

How the Dogs of the Dow Performed in 2025

For 2025, here’s how the Dogs of the Dow did.

• Verizon (NYSE: VZ) started 2025 at around $38. It ended the year at $39.44.
• Chevron (NYSE: CVX) from about $142 to $149.56.
• Johnson & Johnson (NYSE: JNJ) ran from $142 to $204.68.
• Amgen (NYSE: AMGN) ran from about $258 to $322.62.
• Merck (NYSE: MRK) ran from about $98 to $103.74.
• Coca-Cola (NYSE: KO) jumped from $61 to $68.99.
• IBM (NYSE: IBM) ran from about $215 to a $292.38.
• Cisco (NYSE: CSCO) ran from about $58 to $76.21.
• McDonald’s (NYSE: MCD) ran from about $293 to $301.88.
• Procter & Gamble (NYSE: PG) fell from about $264 to $141.24

That’s not bad at all.

Plus, once you factor in the yields for each, the Dogs outperformed the Dow Jones.

Dogs of the Dow Off to Strong Start in 2026

As for 2026, here’s how the Dogs of the Dow have performed to date.

• Verizon (VZ), which yields 6.51%, ran from $39.48 to a current price of $43.52.
• Chevron (CVX), which yields 4.2%, ran from $149.32 to $169.15.
• Merck (MRK), which yields 2.64%, ran from about $104.01 to $128.88.
• Procter & Gamble (PG), which yields 2.95%, ran from $141.04 to $147.81.
• Amgen (AMGN), which yields 2.8%, ran from $324.06 to $359.76.
• Coca-Cola (KO), which yields 2.57%, ran from $68.95 to $82.77.
• Nike (NYSE: NKE), which yields 3.98%, fell from $63.01 to $41.24.
• UnitedHealth (NYSE: UNH), which yields 2.22%, ran from $326.43 to $419.04.
• Home Depot (NYSE: HD), which yields 2.67%, ran from $338.61 to $348.76.
• Johnson & Johnson (JNJ), which yields 2.09%, ran from $204.55 to $256.24.

Why this Strategy Still Works

Historically, the Dogs of the Dow do very well.

The 2024 Dogs of the Dow underperformed the major indices in 2024. However, with dividends, investors still did well for the year.

The 2023 Dogs of the Dow returned an average of 10.1%, which came in below the 14.4% return on the Dow Jones’ Industrials. Still, with the appreciation in most of the 2023 Dogs coupled with dividends, investors still did well overall.

The 2022 Dogs of the Dow beat the major indices, even in a rough year.

In fact, while the Dogs of the Dow stocks fell 1.6% on the year, once you add in the dividend payouts, the Dogs returned 2% on the year. And while 2% may not sound like a big win, consider that, in 2022, one of the worst years on record since 2008, the NASDAQ lost 33%.  The S&P 500 lost 19%.  The Dow Jones lost about 9%.

In 2021, the Dogs of the Dow returned about 16.3%. While 2020 wasn’t a great year for the Dogs, most other years have done very well.  In 2019, the Dogs were up 20%.  In 2018, they were up about 1%, but still beat the Dow, which fell close to 6%.  In 2017, the dogs were up 19%.  In 2016, they were up 16%.

The Long-Term Outlook

With several of the 2026 Dogs already delivering solid gains and continuing to pay dependable dividends, the strategy remains an appealing option for investors seeking income, stability, and long-term growth. As always, diversification and patience are key, but for those looking for a straightforward, historically successful investing strategy, the Dogs of the Dow continue to earn their place in a well-balanced portfolio.

One strategy is to invest in high-quality dividend-paying stocks and dividend-focused exchange-traded funds (ETFs). Not only can dividend investments provide a steady stream of income, but they can also help cushion portfolios during market downturns.

If you’re looking for safety with yield to boot, it’s worth taking a closer look at the Dividend Aristocrats and Dividend Kings.

Why Dividend Aristocrats and Kings Matter

The Dividend Aristocrats represent some of the highest-quality companies in the market. To earn Aristocrat status, a company must have increased its dividend payout for at least 25 consecutive years. Dividend Kings take that distinction even further, consisting of companies that have raised their dividends for 50 years or more.

What makes these companies impressive is their ability to continue rewarding shareholders through virtually every economic environment imaginable. Whether facing inflation, recessions, rising interest rates, stock market crashes, geopolitical uncertainty, or economic booms and busts, these businesses have consistently found ways to grow their payouts.

If a company can survive decades of changing economic conditions while continuing to increase its dividend, it’s often worth putting on your investment radar.

Unfortunately, investors won’t currently find a dedicated Dividend King ETF. However, several ETFs provide exposure to high-quality companies and can help generate reliable income while reducing risk.

ProShares S&P 500 Dividend Aristocrats ETF 

One of the most popular options is the ProShares S&P 500 Dividend Aristocrats ETF (BATS: NOBL). With an expense ratio of 0.35% and a yield of about 2.02%, NOBL focuses exclusively on companies within the S&P 500 that have increased dividends for at least 25 consecutive years. 

A few of the fund’s top holdings include Caterpillar (NYSE: CAT), AbbVie (NYSE: ABBV), and Walmart (NASDAQ: WMT). Many of these companies have been rewarding investors with rising dividend payments for decades. 

Schwab U.S. Large-Cap Value ETF 

Another one to consider is the Schwab U.S. Large-Cap Value ETF (NYSEARCA: SCHV).

With a low expense ratio of just 0.04%, SCHV provides broad exposure to large-cap value stocks that often trade at attractive valuations compared to the broader market. The fund currently yields approximately 1.85%.

Its holdings include some of the most recognizable names in American business, including Johnson & Johnson (NYSE: JNJ), Exxon Mobil (NYSE:XOM), Home Depot (NYSE: HD), and AbbVie.

Schwab U.S. Dividend Equity ETF 

For investors seeking a higher yield, the Schwab U.S. Dividend Equity ETF (NYSEARCA: SCHD) also stands out. With an expense ratio of just 0.06% and a yield of about 3.5%, SCHD has become a favorite among income-focused investors. The fund tracks the Dow Jones U.S. Dividend 100 Index and emphasizes companies with strong cash flow, sustainable dividends, and solid financial health. Top holdings include Amgen (NASDAQ: AMGN), AbbVie, Home Depot, and Coca-Cola (NASDAQ: COKE).

Why Dividend ETFs Work

Markets will always experience periods of uncertainty. Economic cycles come and go, interest rates rise and fall, and investor sentiment can shift quickly. However, companies that consistently generate profits and reward shareholders through growing dividends have historically proven to be among the market’s most dependable performers.

For investors seeking a combination of income, stability, and long-term wealth creation, dividend-focused ETFs such as NOBL, SCHV, and SCHD offer an easy way to gain exposure to some of the strongest businesses in America. While no investment is completely risk-free, owning a diversified basket of proven dividend growers can help smooth out market volatility while putting cash back into your pocket along the way.

With geopolitical tensions surrounding Iran creating uncertainty, no one knows how long volatility will persist. That’s forcing investors to shift toward defensive strategies that emphasize stability, income, and diversification over aggressive growth.

Instead of sitting in cash or trying to time the market, investors may find better opportunities in safe ETFs that provide steady exposure to high-quality assets—some of which follow strategies favored by Warren Buffett.

Why Safe ETFs Make Sense in Volatile Markets

During uncertain periods, the priority shifts from maximizing returns to preserving capital and generating consistent income. Safe ETFs offer:

• Broad diversification across sectors
• Exposure to high-quality companies
• Lower costs compared to active funds
• Reliable dividend income in some cases

These characteristics make them ideal tools for navigating unpredictable markets while staying invested.

Vanguard S&P 500 ETF (VOO): Broad Market Stability

“Over the years, I’ve often been asked for investment advice,” Buffett wrote in a 2016 shareholder letter. “My regular recommendation has been a low-cost S&P 500 index fund.” With that, Buffett has named the Vanguard S&P 500 ETF (NYSEARCA: VOO) as one way to invest.

What makes the VOO ETF attractive is that it measures the performance of the S&P 500 and includes both value and growth stocks across multiple sectors. This broad exposure helps reduce risk tied to any single industry. Some of its top holdings include: NVIDIA Corp. (NASDAQ: NVDA), Microsoft Corp. (NASDAQ: MSFT), Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOGL), and Berkshire Hathaway (NYSE: BRK.B), to name a few.

It offers a low-cost way to safely diversify by tracking the biggest companies, making it an ideal “set it and forget it” trade. In addition, with an expense ratio of 0.03%, the ETF also pays a quarterly yield. 

VanEck Morningstar Wide Moat ETF (MOAT): Quality Over Everything

If you follow Warren Buffett, you know he prefers companies with a wide economic moat—businesses that can defend their profits against competitors over long periods.

In fact, if you want to invest in companies attractive to the billionaire, make sure they are:

• Simple companies that are easy to understand
• Companies with predictable and proven earnings
• Companies that can be bought at a reasonable price
• Companies with an “economic moat,” or a unique competitive advantage

With an expense ratio of 0.47%, the VanEck Morningstar Wide Moat ETF (BATS: MOAT) tracks companies with sustainable competitive advantages. That includes names such as Estee Lauder (NYSE: EL), Teradyne (NASDAQ: TER), Boeing (NYSE: BA), Alphabet, Nike (NYSE: NKE), and NXP Semiconductors (NASDAQ: NXPI). These are firms that tend to perform relatively well even during uncertain economic periods.

The MOAT ETF also yields 1.29% and pays a yearly dividend. On December 24, it paid out $1.2675. On December 22, 2023, it paid $0.7285. While the yield is modest, the focus here is on long-term quality and resilience.

Schwab U.S. Dividend Equity ETF (SCHD): Reliable Income Stream

There’s also the Schwab US Dividend Equity ETF (NYSEARCA: SCHD), which tracks the performance of 100 high-yielding dividend stocks selected based on yield and five-year dividend growth rates.

With an expense ratio of 0.06%, the ETF tracks the total return of the Dow Jones U.S. Dividend Index. It also yields 3.37%, about three times the S&P 500’s dividend yield, making it particularly attractive to income-focused investors. Its holdings include Amgen (NYSE: AMGN), AbbVie (NYSE: ABBV), Home Depot (NYSE: HD), Cisco Systems (NASDAQ: CSCO), Broadcom (NASDAQ: AVGO), Chevron (NYSE: CVX), UPS (NYSE: UPS), and Coca-Cola (NYSE: KO).

Safe ETFs Can Help You Stay Invested

At the end of the day, investing during periods of uncertainty isn’t about trying to perfectly time the market—it’s about positioning yourself to weather the storm while still staying invested. Safe ETFs like VOO, MOAT, and SCHD offer a balanced mix of broad market exposure, high-quality companies, and reliable income, which can help smooth out the ride when volatility spikes.

While no investment is completely risk-free, sticking with diversified, low-cost ETFs and focusing on long-term fundamentals can make a meaningful difference. Instead of reacting emotionally to headlines, investors may be better served by staying disciplined, maintaining perspective, and letting proven strategies work over time.

Dividend Aristocrats are widely considered some of the highest-quality companies in the market. To earn this title, a company must have increased its dividend payouts for at least 25 consecutive years. Dividend Kings take that standard even further. These elite companies have raised their dividends for 50 years or more, proving their resilience across multiple economic cycles.

What makes these companies particularly compelling is their ability to perform in virtually any environment. Whether facing inflation, recessions, rising interest rates, market crashes, or economic booms, they have consistently rewarded shareholders with growing income. That kind of durability is rare—and valuable. It also reflects strong management teams, disciplined capital allocation, and business models built to withstand long-term pressure.

Simply put, if a company can survive decades of economic uncertainty and still pay—and raise—dividends, it deserves attention.

There’s just one drawback: there isn’t currently a dedicated ETF focused solely on Dividend Kings. That means investors looking for exposure must either purchase individual stocks or turn to ETFs that emphasize similar high-quality, dividend-growing companies.

Here are three strong ETF options to consider.

A Pure Play on Dividend Aristocrats

The ProShares S&P 500 Dividend Aristocrats ETF (BATS: NOBL) offers direct exposure to companies that have increased dividends for at least 25 consecutive years.

With an expense ratio of 0.35% and a yield of approximately 2.05%, NOBL tracks the S&P 500 Dividend Aristocrats Index. The fund focuses on stable, high-quality businesses with long track records of dividend growth—many of which have been increasing payouts for 40 years or more.

Its holdings include well-known companies such as Caterpillar (NYSE: CAT), Pentair (NYSE: PNR), AbbVie (NYSE: ABBV), Aflac (NYSE: AFL), General Dynamics (NYSE: GD), Clorox (NYSE: CLX), Walmart (NASDAQ: WMT), and Hormel Foods (NYSE: HRL).

These companies have demonstrated consistent performance and income reliability, making NOBL a strong choice for conservative, income-focused investors.

Low-Cost Exposure to High-Quality Value Stocks

Another solid option is the Schwab U.S. Large Cap Value ETF (NYSEARCA: SCHV), which focuses on large-cap value stocks.

SCHV stands out for its ultra-low expense ratio of just 0.04%, making it one of the most cost-effective ETFs available. It also offers a yield of about 1.85% and provides exposure to a diversified basket of financially strong companies.

Top holdings include Berkshire Hathaway (NYSE: BRK.B), Johnson & Johnson (NYSE: JNJ), Exxon Mobil (NYSE: XOM), JPMorgan Chase (NYSE: JPM), Home Depot (NYSE: HD), AbbVie, Pfizer (NYSE: PFE), and Merck & Co. (NYSE: MRK).

High Yield Meets Dividend Growth Discipline

The Schwab U.S. Dividend Equity ETF (NYSEARCA: SCHD) is another popular choice among income investors. With an expense ratio of 0.06% and a yield of roughly 3.5%, SCHD tracks the Dow Jones U.S. Dividend 100 Index. The ETF focuses on companies with strong fundamentals, sustainable dividends, and a history of consistent payouts.

Its holdings include industry leaders such as Amgen (NASDAQ: AMGN), AbbVie, Home Depot, Cisco Systems (NASDAQ; CSCO), Broadcom (NASDAQ: AVGO), Chevron Corporation (NYSE: CVX), United Parcel Service (NYSE: UPS), and The Coca-Cola Company (NYSE: KO).

SCHD is particularly appealing for investors seeking a blend of income, quality, and long-term growth potential.

Dividend ETFs Offer Stability in Any Market

In uncertain markets, stability and income become even more important. Dividend-focused ETFs—especially those emphasizing companies with long histories of growing payouts—can help anchor your portfolio.

These funds don’t just provide income—they offer exposure to businesses that have proven their ability to navigate inflation, recessions, and shifting interest rate environments. That kind of consistency can reduce volatility while still allowing for long-term capital appreciation.

While no ETF is exclusively dedicated to Dividend Kings, funds like NOBL, SCHV, and SCHD give investors access to many of the same high-quality characteristics: strong balance sheets, disciplined management, and shareholder-friendly capital allocation.

For investors looking to balance risk and reward, these ETFs can serve as a core portfolio holding—delivering both reliability and growth potential over time.

In today’s market environment, where interest rates and inflation expectations continue to shift, investors are increasingly looking for flexible income strategies that don’t rely on a single asset class. Dividend ETFs stand out because they combine equity upside with regular income, offering a middle ground between growth investing and traditional fixed income. This flexibility makes them especially attractive for long-term investors navigating uncertain conditions.

For investors looking to simplify their portfolios while still generating reliable cash flow, dividend-focused ETFs can serve as strong core holdings.

Three funds in particular stand out for long-term, buy-and-hold investors: The Vanguard Real Estate ETF (NYSEARCA: VNQ), the ProShares S&P 500 Dividend Aristocrats ETF (BATS: NOBL), and the Schwab U.S. Dividend Equity ETF (NYSEARCA: SCHD). Each offers a different approach to income and stability, but all share a focus on quality and long-term compounding.

The Vanguard Real Estate ETF (VNQ)

The Vanguard Real Estate ETF (VNQ) provides broad exposure to the U.S. real estate market through a diversified portfolio of real estate investment trusts and related companies. 

With an expense ratio of just 0.13% and a dividend yield of roughly 3.7%, it remains one of the most cost-effective ways to gain exposure to the property sector. 

The fund holds more than 150 positions, spanning healthcare REITs, industrial warehouses, data centers, and retail properties. Major holdings include Welltower (NYSE: WELL), Prologis (NYSE: PLD), American Tower Corporation (NYSE: AMT), Equinix (NASDAQ: EQIX), Digital Realty Trust (NYSE: DLR), and Simon Property Group (NYSE: SPG).

The ProShares S&P 500 Dividend Aristocrats ETF (NOBL)

The ProShares S&P 500 Dividend Aristocrats ETF (NOBL) tracks companies in the S&P 500 that have increased their dividends for at least 25 consecutive years, a group often viewed as some of the most financially stable businesses in the market. 

With an expense ratio of around 0.35% and a dividend yield near 2.5%, NOBL is less about high income and more about durability and steady growth. It holds roughly 69 companies, including AbbVie (NYSE: ABBV), Lowe’s (NYSE: LOW), Archer Daniels Midland (NYSE: ADM), and Pentair (NYSE: PNR). These businesses have demonstrated an ability to withstand economic downturns while continuing to reward shareholders, making the ETF a popular choice for investors who prioritize long-term reliability over short-term yield.

The Schwab U.S. Dividend Equity ETF (SCHD) 

The Schwab U.S. Dividend Equity ETF (SCHD) offers a balance between income, quality, and cost efficiency. With an extremely low expense ratio of 0.06% and a dividend yield close to 4%, SCHD has become one of the most widely held dividend ETFs among long-term investors. It tracks a portfolio of more than 100 U.S. companies with strong balance sheets, consistent cash flow, and a history of paying dividends.

Holdings include well-known names such as Amgen (NASDAQ: AMGN), AbbVie, Home Depot (NYSE: HD), Cisco Systems (NASDAQ: CSCO), Chevron (NYSE: CVX), and Coca-Cola (NYSE: KO). What makes SCHD particularly appealing is its blend of defensive and cyclical sectors, giving investors exposure to both stability and growth potential while maintaining a strong income stream.

Why These ETFs Work for Long-Term Investors

Funds like VNQ, NOBL, and SCHD demonstrate that a disciplined, income-focused approach can provide both stability and growth over time. By combining real estate exposure, dividend consistency, and high-quality U.S. equities, these ETFs offer a well-rounded foundation for investors who want to generate passive income while benefiting from compounding returns. For those willing to stay patient and reinvest dividends, these types of core holdings can play a powerful role in achieving financial independence 

Importantly, these ETFs also remove the need to constantly monitor individual holdings or time the market. That simplicity allows investors to stay focused on long-term goals rather than short-term volatility, which is often the biggest determinant of successful outcomes.

There are many safe ETFs to choose from. So many, in fact, that it can create analysis paralysis. Don’t let that happen to you. Here are three of the top ETFs to own if stable growth with a reliable yield is your first priority.

Safe ETFs to Buy: The Vanguard S&P 500 ETF

“Over the years, I’ve often been asked for investment advice,” Buffett wrote in a 2016 shareholder letter. “My regular recommendation has been a low-cost S&P 500 index fund.”

With that, Buffett has named the Vanguard S&P 500 ETF (NYSEARCA: VOO) as one way to invest. What makes the VOO ETF the most attractive is that it measures the performance of the S&P 500 and includes both value stocks and growth stocks from multiple market sectors. In fact, its holdings include some of the most widely held stocks, including Nvidia (NASDAQ: NVDA), Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOGL) and Berkshire Hathaway (NYSE: BRK.B).

It offers a low-cost way to safely diversify by tracking the largest companies, making it an ideal set-it-and-forget-it trade. In addition, with an expense ratio of 0.03%, the ETF also pays a quarterly yield. On December 24, it paid a dividend of just over $1.771. Before that, it paid a dividend of $1.74 on October 1. Before that, it paid a dividend of just over $1.7447 on July 2.

Safe ETFs to Buy: The VanEck Morningstar Wide Moat ETF

If you follow Warren Buffett, you know he likes companies with a wide economic moat. In fact, if you want to invest in companies attractive to the billionaire, make sure they are:

• Simple companies that are easy to understand
• Companies with predictable and proven earnings
• Companies that can be bought at a reasonable price
• Companies with “economic moat,” or a unique advantage over their competition.

With an expense ratio of 0.47%, the VanEck Morningstar Wide Moat ETF (BATS: MOAT) tracks the performance of companies with sustainable competitive advantages. That includes Estee Lauder (NYSE: EL), Teradyne (NASDAQ: TER), Boeing (NYSE: BA), Alphabet, Nike (NYSE: NKE), and NXP Semiconductors (NASDAQ: NXPI). 

The MOAT ETF also yields 1.29% and pays a yearly dividend. On December 24, it paid out a dividend of $1.2675. On December 22, 2023, it paid out a dividend of $0.7285.

Safe ETFs to Buy: The Schwab US Dividend Equity ETF

There’s also the Schwab US Dividend Equity ETF (NYSEARCA: SCHD), which tracks the performance of 100 high-yielding dividend stocks chosen by yield and five-year dividend growth rates.

With an expense ratio of 0.06%, the ETF tracks the total return of the Dow Jones U.S. Dividend Index. It also yields 3.37%, which is about three times the S&P 500’s dividend yield, and has holdings in names such as: Amgen (NASDAQ: AMGN), AbbVie (NYSE: ABBV), Home Depot (NYSE: HD), Cisco Systems (NASDAQ; CSCO), Broadcom (NASDAQ: AVGO), Chevron (NYSE: CVX), UPS (NYSE: UPS), and Coca-Cola (NYSE: KO).  Its last dividend of just over 27 cents was paid on December 15. Before that, it paid just over 26 cents on September 29. 

Control What You Can Control

While geopolitical tensions and market volatility may keep investors on edge, the key to long-term success is staying invested in high-quality assets. ETFs like the Vanguard S&P 500 ETF, VanEck Morningstar Wide Moat ETF, and Schwab US Dividend Equity ETF provide diversification, strong underlying companies, and reliable income streams—all qualities that can help weather uncertain markets. 

Instead of trying to time every headline, investors can focus on disciplined, long-term strategies using funds like these to build resilience and stability in their portfolios.

After spending years building up your nest egg, you want to step into the retirement you deserve — whether that means relocating to a dream destination, traveling more, spending more time with family, or simply enjoying the comfort of your finances.

What you don’t want is constant stress about market swings, inflation quietly eroding your purchasing power, or the fear of outliving your savings. Retirement should be about freedom and confidence, not anxiety.

One of the most effective ways to build that confidence is by owning income-focused ETFs that deliver consistent cash flow, diversification, and professional management. Instead of relying solely on selling shares to fund your lifestyle, these funds aim to turn your portfolio into a dependable income engine.

Below are five retirement income ETFs that can help provide a reliable “paycheck” in retirement, along with why each can play an important role in a long-term income strategy.

Retirement Income ETFs: Schwab US Dividend Equity ETF (SCHD)

Retirees looking for a low-cost dividend ETF that invests in quality companies can look into the Schwab US Dividend Equity ETF (NYSEARCA: SCHD). This ETF screens for high-yielding companies that have a track record of paying dividends. 

The ETF tracks the total return of the Dow Jones U.S. Dividend 100 Index. It has 100 holdings, including names such as Amgen (NASDAQ: AMGN), AbbVie (NYSE: ABBV), Home Depot (NYSE: HD), Cisco Systems (NASDAQ: CSCO), Broadcom (NASDAQ: AVGO), Chevron (NYSE: CVX), UPS (NYSE: UPS), and Coca-Cola (NYSE: KO).  

The fund has an expense ratio of 0.06% and pays a quarterly dividend that yields 3.38%.

Retirement Income ETFs: Invesco S&P 500 High Dividend Low Volatility ETF (SPHD)

The Invesco S&P 500 High Dividend Low Volatility ETF (NYSEARCA: SPHD) seeks steady income by investing in high-quality companies that pay high dividends and experience low volatility, helping steer investors clear of value traps and mitigate risk.

The fund offers a yield of about 4%. This means a $400,000 investment could pay $1,333 a month with that yield. Its holdings are mainly in real estate and in defensive sectors such as consumer staples and utilities.

Retirement Income ETFs: JPMorgan Equity Premium Income ETF (JEPI)

The JPMorgan Equity Premium Income ETF (NYSEARCA: JEPI) generates income by combining some of the top blue-chip stocks, such as Amazon (NASDAQ: AMZN), Mastercard (NYSE: MA), and Nvidia (NASDAQ: NVDA), using options strategies.

All of which help produce hefty monthly income for investors. In fact, last checked, the JEPI ETF yields about 7.24%, which isn’t too shabby at all. With an expense ratio of 0.35%, the ETF holds 122 stocks, including Visa (NYSE: V), Mastercard, Trane Technologies (NYSE: TT), Microsoft (NASDAQ: MSFT), Oracle (NYSE: ORCL), The Southern Company (NYSE: SO), and Nvidia.

Retirement Income ETFs: JPMorgan Nasdaq Equity Premium Equity Income ETF (JEPQ)

The JPMorgan Nasdaq Equity Premium Equity Income ETF (NASDAQ: JEPQ) generates income by selling options and by investing in U.S. large-cap growth stocks. All of which allows it to deliver a monthly income stream through options premiums and stock dividends. Even better, investors have also benefited from the ETF’s appreciation. 

The ETF has an expense ratio of 0.35% at the time of this writing, and pays a monthly dividend with a yield of 9.74%,

Retirement Income ETFs: iShares Core High Dividend ETF (HDV)

The iShares Core High Dividend ETF (NYSEARCA: HDV) tracks the investment results of an index composed of relatively high-dividend-paying U.S. equities. Some of its top holdings include Exxon Mobil (NYSE: XOM), Chevron, and Johnson & Johnson (NYSE: JNJ).

With a yield of 3.41% and an expense ratio of 0.08%,

It’s About Peace of Mind

Retirement isn’t about chasing the highest returns or trying to beat the market. It’s about peace of mind. It’s about knowing your bills are covered, your lifestyle is supported, and your money is working quietly in the background so you can focus on living.

The right mix of retirement income ETFs can help turn decades of hard work into dependable cash flow — month after month, year after year. While no investment is risk-free, building a diversified portfolio centered on quality, income, and consistency can go a long way toward making retirement feel less uncertain and more secure. In the end, the goal isn’t just to retire — it’s to retire confidently, knowing your portfolio is built to support the life you’ve earned.

The Strategy Behind the Dogs of the Dow

The Dogs of the Dow strategy is made up of two distinct parts. The first is to invest, and the second is to rebalance.

Part one: Invest equal amounts into the 10 highest-dividend-yielding stocks from the Dow Jones Industrial Average. Because the Dow Jones Industrial Average is widely regarded as a benchmark of the broader U.S. stock market, its component stocks represent the entire U.S. market. Furthermore, these are blue-chip stocks that are strong enough to withstand the test of time.

Part Two: Rebalance the portfolio every year into equal amounts of the 10 highest-yielding stocks in the Dow. The rationale for doing this every year goes back to research that indicates that, over the long term, the strategy generates higher returns then buying shares of an index fund tied to the DJIA, or even the S&P 500.

It’s a deceptively easy strategy, but it requires discipline. If this strategy appeals to you, here’s a cheat sheet to help you execute this strategy in 2026.

Dogs of the Dow: 2025 and 2026

For 2025, here’s how the Dogs of the Dow are doing with just days to go.

• Verizon (NYSE: VZ), which yields 6.85%, started the year at around $38. It’s now up to $40.
• Chevron (NYSE: CVX), which yields 4.54%, ran from about $142 to $150.50.
• Johnson & Johnson (NYSE: JNJ), which yields 2.5%, ran from $142 to $207.78.
• Amgen (NASDAQ: AMGN), which yields 3.02%, ran from about $258 to $334.
• Merck (NYSE: MRK), which yields 3.19%, traded between approximately $98 and $106.45.
• Coca-Cola (NYSE: KO), which yields 2.91%, jumped from $61 to $70.11 so far.
• IBM (NYSE: IBM), which yields 2.21%, ran from about $215 to a $304.56.
• Cisco (NASDAQ: CSCO), which yields 2.1%, ran from about $58 to $78.
• McDonald’s (NYSE: MCD), which yields 2.37%, ran from about $293 to $313.
• Procter & Gamble (NYSE: PG), which yields 2.93%, fell from about $264 to $144.50.

That’s not bad at all.

Plus, once you factor in the yields for each, the Dogs of the Dow outperformed the Dow Jones.

As for 2026, while the official list isn’t out just yet, here’s what’s likely to make the list.

• Verizon (VZ), which yields 6.84%
• Chevron (CVX), which yields 4.56%
• Merck (MRK), which yields 3.2%
• Procter & Gamble (PG), which yields 2.92%
• Amgen (AMGN), which yields 3.04%
• Coca-Cola (KO), which yields 2.92%
• Nike (NYSE: NKE), which yields 2.72%
• UnitedHealth (NYSE: UNH), which yields 2.68%
• Home Depot (NYSE: HD), which yields 2.64%
• Johnson & Johnson (JNJ), which yields 2.51%

A Strategy With a Proven Track Record

Historically, the Dogs of the Dow do very well for income-oriented investors.

• The 2024 Dogs of the Dow underperformed the major indices in 2024. However, with dividends, investors still did well for the year.
• The 2023 Dogs of the Dow returned an average of 10.1%, which came in below the 14.4% return on the Dow Jones’ Industrials. Still, with the appreciation in most of the 2023 Dogs coupled with dividends, investors still did well overall.
• The 2022 Dogs of the Dow beat the major indices, even in a rough year.

In fact, while the Dogs of the Dow stocks fell 1.6% on the year, once you add in the dividend payouts, the Dogs returned 2% on the year. And while 2% may not sound like a big win, consider that, in 2022, one of the worst years on record since 2008, the NASDAQ lost 33%.  The S&P 500 lost 19%.  The Dow Jones lost about 9%.

• In 2021, the Dogs of the Dow returned about 16.3%.
• In 2019, the Dogs were up 20%. 
• In 2018, they were up about 1%, but still beat the Dow, which fell close to 6%. 
• In 2017, the dogs were up 19%.  In 2016, they were up 16%.

While 2020 wasn’t a great year for the Dogs, it wasn’t great for a lot of stocks for obvious reasons. However, most other years, the Dogs of the Dow have performed very well. 

Should You Buy the Dogs of the Dow in 2026?

The Dogs of the Dow remains one of the simplest income strategies available to retail investors, and its track record speaks for itself. While the strategy doesn’t outperform every year, the long-term results show consistent dividend income and competitive total returns, especially during volatile market cycles. With yields still attractive and several blue-chip names likely to appear on the 2026 list, the setup for the coming year looks compelling. As always, discipline and annual rebalancing are key. For patient investors who value simplicity and dependable dividends, the Dogs of the Dow remain worth serious consideration.

In fact, having traded the Dogs of the Dow since 2016, I can tell you it’s still a solid strategy with dividend payouts to boot.

For those of you who are new to the Dogs, it’s one of the easiest – and oftentimes most profitable strategies. You simply buy a basket of underperformers on the Dow that pay dividends, and sell by the end of the year. In most years, the Dogs do pretty well.

What makes the strategy attractive is that you’re buying the highest-yielding stocks on the Dow, which itself is made up of large, established, and financially stable companies. This selection process filters for reliability and lowers the risk of investing in a speculative venture. All you’re really doing is investing in temporarily beaten-down respected companies and collecting yield until the stock decides to rally back.

For those who are new to the Dogs of the Dow, it really is that easy.

A Proven Track Record

Let’s look at how the Dogs have done historically since 2016.

The 2024 Dogs of the Dow underperformed the major indices in 2024. However, with dividends, investors still did well for the year.

The 2023 Dogs of the Dow returned an average of 10.1%, which came in below the 14.4% return on the Dow Jones Industrials. Still, with the appreciation in most of the 2023 Dogs coupled with dividends, investors still did well overall. The 2022 Dogs of the Dow beat the major indices, even in a rough year.

In fact, while the Dogs of the Dow stocks fell 1.6% on the year, once you add in the dividend payouts, the Dogs returned 2% on the year. And while 2% may not sound like a big win, consider that, in 2022, one of the worst years on record since 2008, the NASDAQ lost 33%.  The S&P 500 lost 19%.  The Dow Jones lost about 9%.

In 2021, the Dogs of the Dow returned about 16.3%. While 2020 wasn’t a great year for the Dogs, most other years have done very well.  In 2019, the Dogs were up 20%.  In 2018, they were up about 1%, but still beat the Dow, which fell close to 6%.  In 2017, the dogs were up 19%.  In 2016, they were up 16%.

How Are the Dogs of the Dow Doing in 2025?

For 2025, here’s how the Dogs are doing.

• Verizon (VZ), which yields 6.68%, started the year at around $38. It’s. now up to $41.35.
• Chevron (CVX), which yields 4.51%, ran from about $142 to $151 so far.
• Johnson & Johnson (JNJ), which yields 2.57%, ran from $142 to $202.50.
• Amgen (AMGN), which yields 2.78%, ran from about $258 to $342.
• Merck (MRK), which yields 3.57%, slipped from about $98 to $95.
• Coca-Cola (KO), which yields 2.86%, jumped from $61 to $71.35.
• IBM (IBM), which yields 2.31%, ran from about $215 to a high of $291.
• Cisco (CSCO), which yields 2.09%, ran from about $58 to $78. 
• McDonald’s (MCD), which yields 2.44%, ran from about $293 to $304.
• Procter & Gamble (PG), which yields 2.87%, fell from about $264 to $147.

Eight out of 10 isn’t bad at all.

Conclusion

Not only do investors make a substantial amount of money year to date from the Dogs of the Dow stocks, but they also earn a good return on the dividends. Also, while the 2026 Dogs of the Dow list hasn’t been released yet, stay tuned. We’ll share that list with you once it’s officially out.

On one side, you’ll find investors who love to speculate on small-cap biotech and pharma names. These stocks often trade for $10 or less. However, many are not profitable and have little to no revenue. Their success or failure hinges on the outcome of a single clinical trial or FDA decision.  

These stocks can generate life-changing returns, but they also carry enormous risk and volatility. The kind of risk and volatility that isn’t suitable for risk-averse investors.  

On the other side are the large-cap pharmaceutical stocks with decades of success, broad product portfolios, and recurring revenue streams. These companies generate consistent profits, invest heavily in research and development (R&D), and reward shareholders through dividends and buybacks. 

For investors who prefer the latter category, three large-cap pharmaceutical stocks—Pfizer Inc. (NYSE: PFE), AbbVie Inc. (NYSE: ABBV), and Amgen Inc. (NASDAQ: AMGN)—stand out for their strong fundamentals. However, despite their obvious similarities. Each caters to a different type of long-term investor. 

Pfizer: The Rebound Value Play Among Pharmaceutical Stocks 

Pfizer was a standout stock in 2021, when its COVID-19 vaccine and antiviral pill generated tens of billions in sales. But as the pandemic receded, so did Pfizer’s revenue and stock price.  

Shares are now trading near decade lows, making the company a potential turnaround story for patient investors. I say “potential” because PFE stock has been dead money for several years despite many analysts claiming the stock was a logical turnaround candidate. 

The challenge is clear but will take time. That is, Pfizer needs to replace declining COVID product sales with growth from the company’s core portfolio and pipeline. Management has launched an aggressive cost-cutting program and expects to realize $4 billion in savings by the end of 2025.  

More importantly, Pfizer is betting on new products in oncology, immunology, and rare diseases to reignite growth. Several of these new drugs, including the migraine treatment Nurtec ODT and the RSV vaccine Abrysvo, are already gaining traction. The company also completed its acquisition of Seagen, adding a suite of cutting-edge oncology therapies that could become long-term revenue drivers. 

Investors willing to wait for that growth to materialize can collect an attractive dividend while they do. Pfizer’s dividend yield of over 5% is one of the highest among large-cap pharmaceutical stocks. The payout is well-supported by cash flow and reflects management’s commitment to returning capital to shareholders even through a period of transition. 

Investor takeaway: Pfizer represents a classic value opportunity—an industry leader trading at a discount with a clear plan to restore growth. For investors who prioritize income and patience, PFE stock could offer meaningful upside in the next two to three years. 

AbbVie: Dividend Royalty Among Pharmaceutical Stocks 

AbbVie is a favorite among income investors, and for good reason. After its 2013 spin-off from Abbott Laboratories, AbbVie was grandfathered in as a Dividend Aristocrat. Since then, the company has built an impressive record of dividend growth all its own, earning its place among the S&P 500 Dividend Kings. With a yield of around 3.25%, AbbVie is a cornerstone for dividend portfolios. 

For years, AbbVie’s success revolved around Humira, the blockbuster immunology drug that once accounted for more than a third of the company’s revenue. When Humira’s U.S. patent expired in 2023, many feared a steep decline. Instead, AbbVie executed one of the smoothest transitions in big pharma history. 

Its next-generation drugs, Skyrizi and Rinvoq, are now well-established and are expected to more than offset Humira’s losses by 2025. AbbVie has also diversified with acquisitions in neuroscience (Allergan, maker of Botox) and oncology, building a broader and more resilient pipeline. 

Beyond the fundamentals, AbbVie’s consistent cash flow and disciplined capital allocation make it a strong choice for investors who value both income and stability. Even as it invests heavily in new R&D initiatives, the company maintains a conservative payout ratio and continues to deliver total returns well above sector averages. 

Investor takeaway: AbbVie is tailor-made for dividend investors. It offers a reliable yield, a growing payout, and a proven ability to navigate industry headwinds. 

Amgen: An Innovative Growth Play Among Pharmaceutical Stocks 

Amgen rounds out the trio as the innovation-driven growth play. The company has built one of the most diverse portfolios in the industry, spanning oncology, inflammation, bone health, and biosimilars. Unlike many peers, Amgen has maintained steady growth while continuing to return capital to shareholders through dividends and buybacks. 

The acquisition of Horizon Therapeutics in 2023 adds a new layer of growth potential in rare diseases, particularly in conditions like thyroid eye disease and gout. Amgen’s R&D pipeline remains robust, supported by strong cash generation and an emphasis on next-generation biologics. 

Amgen is also embracing technology to improve efficiency and accelerate drug discovery. The company is integrating artificial intelligence into its clinical and R&D processes, which could lead to faster and more targeted therapy development. 

With a dividend yield around 3.2%, Amgen offers income alongside growth—a balance that’s increasingly rare in the healthcare sector. The stock has also outperformed peers over the past three years, underscoring investor confidence in management’s strategy. 

Investor takeaway: Amgen appeals to investors seeking growth with stability. Its innovation engine, strategic acquisitions, and shareholder-friendly policies make it one of the most balanced large-cap pharma plays available. 

Get the Reward Without the Risk 

While small-cap biotech stocks may offer bigger short-term excitement, large-cap pharmaceutical companies like Pfizer, AbbVie, and Amgen deliver steady growth, dependable income, and resilience through market cycles. 

Each caters to a different investing style: 

• Pfizer for value and recovery potential. 

• AbbVie for income and dividend growth. 

• Amgen for innovation and balanced expansion. 

Together, they represent a diversified way to gain exposure to the pharmaceutical sector without taking unnecessary risk. For investors looking to blend safety, yield, and growth, these three big pharma stocks could make a healthy addition to any long-term portfolio.