But let’s take a step back and ask why this is important.

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.  You also don’t want to live on the scant 0.6% from your average savings account.

Collect 3.38% Every Quarter

One way to do that is by investing in a safe, high-yielding exchange traded fund (ETF), like the Schwab U.S. Dividend Equity ETF (NYSEARCA: SCHD). With an ultra-low expense ratio of 0.06%, the SCHD ETF tracks the total return of the Dow Jones U.S. Dividend 100 Index. The fund currently holds 101 dividend-paying stocks, including blue-chip names such as Bristol Myers Squibb (NYSE: BMY), Merck & Co. (NYSE: MRK), ConocoPhillips (NYSE: COP), Lockheed Martin Corp. (NYSE: LMT), Chevron (NYSE: CVX), Verizon Communications Inc. (NYSE: VZ), and Cisco Systems (NASDAQ: CSCO).

SCHD pays a quarterly dividend, making it a reliable source of regular income. It last paid out just over 27 cents per share on December 15. Before that, it distributed just over 26 cents per share on September 29 and just over 26 cents per share again on June 30. That kind of consistency is exactly what retirees need when planning monthly expenses.

The ETF is also up about 15% since the start of the year after a lackluster 2025. This is a reminder that dividend-paying ETFs can offer growth potential alongside income.

High Standards, Built-In Stability

What really sets SCHD apart from other dividend-paying ETFs is its strict eligibility criteria. To even be considered for inclusion, a company must have at least 10 consecutive years of dividend payouts, a market cap of no less than $500 million, and an average three-month daily trading volume of at least $2 million. In short, the ETF doesn’t accept any slouches. SCHD also favors companies carrying little to no debt, adding an extra layer of stability that matters when volatility picks up.

This disciplined, rules-based approach is one reason SCHD has earned a strong reputation among investors who prioritize quality over yield-chasing. Many dividend-paying ETFs simply sweep up the highest yields available without regard for financial health — SCHD takes the opposite approach, screening for durability first.

The SCHD ETF Will Rebalance in March

In just weeks, the SCHD ETF will also undergo its annual rebalancing. This time around, it’s again expected to rotate out of stocks with compressed yields and into stocks with higher yields, which should include stocks in the financial and healthcare sectors.

For investors keeping an eye on dividend-paying ETFs heading into the spring, this rebalancing could create a timely entry point. It offers a strong alternative. Owning a high-quality dividend ETF like SCHD can be a powerful step toward turning your hard-earned nest egg into lasting financial security.

A Smarter Alternative to Your Savings Account

The SCHD ETF has proven to be a reliable choice for those seeking income, stability, and long-term growth. And it provides all of that in a single, low-cost fund. For investors who want to replace the unreliable interest of a savings account with a consistent quarterly paycheck, without taking on excessive risk, SCHD offers a compelling alternative.

Owning a high-quality dividend-paying ETF like SCHD can be a powerful step toward turning your hard-earned nest egg into lasting financial security — and the kind of retirement you’ve actually been working toward.

And with markets as volatile as they’ve been, having passive income flow into your portfolio automatically serves as a hedge against inflation concerns.

As you might expect, you have many options to choose from. However, to help narrow your search, here are three of the best dividend ETFs that you can own today.

Best Dividend ETFs: ProShares S&P 500 Dividend Aristocrats ETF

My first pick is the ProShares S&P 500 Dividend Aristocrats ETF (BATS: NOBL). The fund is wholly invested in a special group of companies known as dividend aristocrats. This is one of the best ways to generate a reliable income because dividend aristocrats are among the most reliable dividend payers. 

Not only have these stocks paid out dividends for more than 25 years, but they’re also some of the most reliable companies on the planet, even in the worst of times. Some of NOBL’s top holdings include Albemarle (NYSE: ALB), Cardinal Health (NYSE: CAH), Nucor Corp. (NYSE: NUE), Dover Corp. (NYSE: DOV), Caterpillar (NYSE: CAT), Chubb Inc. (NYSE: CB), Johnson & Johnson (NYSE: JNJ) and Walmart (NASDAQ: WMT).

The fund yields 2.52% with a reasonable expense ratio of 0.35%. NOBL also paid out a dividend of just over 54 cents per share on September 30. Before that, it paid out a dividend of just over 55 cents on July 1. 

You could always buy a basket of these aristocrats, but with the NOBL ETF, you get exposure to all 69 of them.

Best Dividend ETFs: Schwab US Dividend Equity ETF

You may also want to consider the Schwab US Dividend Equity ETF (NYSEARCA: SCHD). The ETF tracks the total return of the Dow Jones U.S. Dividend Index. An attractive feature of the ETF is its ultra-low expense ratio of just 0.06%.

The EFT includes a total of 102 dividend stocks. So, by buying into the ETF, you’re diversified with a great selection of dividend stocks. Some of the top holdings include: 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).  

As of this writing, the SCHD ETF has a 3.93% yield. The ETF paid a dividend of just over 27 cents per share on December 15. Before that, it paid a dividend of just over 26 cents on September 29. And before that, it paid just over 26 cents on June 30.

Best Dividend ETFs: Schwab U.S. Large Cap Value ETF

The third pick on this list is the Schwab U.S. Large Cap Value ETF (NYSEARCA: SCHV). The fund tracks the total return of the Dow Jones U.S. Large-Cap Value Total Stock Market Index (the Index). The Fund’s index comprises the large-cap value portion of the Dow Jones U.S. Total Stock Market Index, which is available to investors in the marketplace.

With an expense ratio of 0.04%, the SCHV ETF holds a portfolio of 561 large-cap value stocks, including Berkshire Hathaway (NYSE: BRK-B), Exxon Mobil (NYSE: XOM), JP Morgan Chase (NYSE: JPM), Pfizer (NYSE: PFE), and Merck (NYSE: MRK), to name a few. 

Finding the Best Dividend ETFs is an Effective Sector Rotation Strategy

Sector rotation is common at the end/beginning of a quarter. And when the quarter comes at the end of the year, the rotation can be more pronounced.

Investors are seeing a flight out of many of the Magnificent 7 stocks. That money isn’t just sitting on the sidelines, investment managers are putting it to work in the sectors they believe will benefit as the market broadens out.

Many of those sectors, like consumer staples or consumer discretionary, even utilities, are known for dividend-paying stocks. Rather than picking individual names, finding the best dividend ETFs, like the ones above, is a solid strategy that gives you the benefits of compounding with the diversity of owning stocks across a range of sectors.