One of the best examples is the Vanguard High Dividend Yield ETF (NYSEARCA: VYM), which has held up better than the broader market this year thanks to its diversified basket of reliable dividend-paying companies. High-yield dividend stocks not only provide recurring income, but they can also help cushion portfolios when markets become uncertain.

Year to date, VYM has outperformed the S&P 500. While the benchmark index is down about 3% this year, VYM has delivered positive returns of roughly 3%, highlighting the defensive appeal of dividend investing.

With an expense ratio of just 0.04%, the ETF tracks the FTSE High Dividend Yield Index and currently holds 562 stocks, including Broadcom (NASDAQ: AVGO), JPMorgan Chase (NYSE: JPM), Exxon Mobil (NYSE: XOM), Walmart (NYSE: WMT), and Johnson & Johnson (NYSE: JNJ). The ETF also yields about 2.29% and pays a quarterly dividend.

For investors looking for even higher income opportunities, here are two additional high-yield dividend stocks that could deserve a permanent place in a long-term portfolio.

Realty Income 

Collect Reliable Monthly Income With Realty Income

Known as “The Monthly Dividend Company,” Realty Income (NYSE: O) yields about 5%.  It also just increased its monthly cash dividend to $0.2705 per share from $0.270 per share. The dividend is payable on April 15, 2026, to stockholders of record as of March 31, 2026. The new monthly dividend represents an annualized dividend of $3.246 per share, compared with the prior annualized dividend of $3.240 per share.

Making it even more attractive, Realty Income is one of the biggest lease real estate investment trusts (REITs) you can buy. It also owns more than 15,600 properties, with a vast majority of those in the retail sector. In fact, some of its biggest tenants include 7-Eleven, Dollar General, Walgreen’s, Wynn Resorts, FedEx, BJ’s Wholesale Club, CVS, and Tractor Supply.

Lock In Strong Yield and Defensive Cash Flow With Verizon 

With a yield of about 5.6%, Verizon (NYSE: VZ) is another hot, high-yielding stock to buy and forget about for a while. The company declared a dividend of $0.7075, a 2.5% increase from its prior dividend of $0.69. It’s payable on May 1 to shareholders of record as of April 10.

Recent earnings and guidance were also solid. For the fourth quarter, EPS of $1.09 beat by three cents. Revenue of $36.4 billion, up 2.4% year over year, beat by $200 million. In the quarter, the company also saw total postpaid phone net additions of 616,000, up 22% and ahead of estimates of 420,491. For 2026, Verizon expects total retail postpaid phone net additions of 750,000 to a million and adjusted EPS of $4.90 to $4.95, or growth of 4% to 5%.

Helping analysts at Raymond James raise their price target on Verizon to $56 from $50, with an outperform rating. Analysts at Scotiabank also upgraded Verizon to sector outperform from sector perform, with a price target of $54.50 a share from $50.25, citing cost-cutting measures.

High-Yield Dividend Stocks Provide Safety

In a market where volatility can strike without warning, high-yield dividend stocks can provide both stability and reliable income for long-term investors. Whether you choose the broad diversification of the Vanguard High Dividend Yield ETF, the dependable monthly payouts from Realty Income, or Verizon’s strong cash flow and growing dividend, each offers a compelling way to build wealth over time. 

While no investment is completely risk-free, quality dividend plays have historically rewarded patient investors with consistent returns, passive income, and a measure of protection during uncertain markets. For investors focused on long-term growth and income, these are the kinds of positions that can deserve a permanent place in a portfolio.

This is particularly true if you’re thinking about retirement, nearing retirement, or you’re already there. One of the last things you want to worry about is whether your money will last. Financial security becomes less about chasing big gains and more about generating reliable, consistent income.

So why not put your money to work for you—starting today?

One of the most effective ways to do that is by investing in assets that provide both passive income and long-term growth. Exchange-traded funds (ETFs), especially those offered by Vanguard and other major issuers, can play a key role in achieving that balance. 

High-Yielding ETFs: JEPQ

The JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ: JEPQ) is a great example of this strategy. The ETF has delivered consistent income payouts. It paid a dividend of just over $0.50 per share on March 2, around $0.46 on February 2, and just over $0.57 on January 5. While these payments can fluctuate month to month, they highlight the fund’s focus on delivering regular income to investors.

With a yield of about 11.38%, this ETF stands out as one of the more aggressive income generators on the market today. It achieves this high yield through a combination of investing in U.S. large-cap growth stocks—many of which are tied to the technology-heavy Nasdaq—and selling call options to generate additional income. This options strategy helps boost yield, though it can also limit some upside during strong market rallies.

However, JEPQ isn’t the only strong dividend-paying ETF worth considering. Here are two more that offer a mix of stability, income, and long-term potential.

High-Yielding ETFs: VYM

Another popular choice is the Vanguard High Dividend Yield ETF (NYSEARCA: VYM), which takes a more conservative and diversified approach to income investing.

With an expense ratio of just 0.04%, VYM tracks the performance of the FTSE High Dividend Yield Index. The fund currently holds over 500 stocks, giving investors exposure to some of the most established dividend-paying companies in the U.S. market. Its top holdings include major blue-chip names like Broadcom (NASDAQ: AVGO), JPMorgan Chase (NYSE: JPM), Exxon Mobil (NYSE: XOM), Walmart (NYSE: WMT) and Johnson & Johnson (NYSE: JNJ).

The ETF currently offers a yield of around 2.29% and pays dividends on a quarterly basis. While its yield is lower than JEPQ’s, VYM makes up for it with stability and long-term reliability. Historically, funds like VYM have provided steady dividend growth over time, which can help investors keep pace with inflation.

Recent payouts include approximately $0.94 per share in September, about $0.84 earlier in the year, and roughly $0.86 in June. These consistent distributions make it a solid “core” holding for income-focused portfolios.

High-Yielding ETFs: VDE

Another strong option for dividend seekers is the Vanguard Energy Index Fund ETF (NYSEARCA: VDE), which focuses specifically on the energy sector.

With an expense ratio of 0.09% and a yield of about 2.43%, VDE offers targeted exposure to oil, gas, and energy infrastructure companies. The fund holds roughly 100+ stocks, including major players like Chevron (NYSE: CVX), ConocoPhillips (NYSE: COP), Williams Companies (NYSE: WMB), and EOG Resources (NYSE: EOG).

Like VYM, VDE pays dividends quarterly. It recently distributed just over $1.02 per share in December, following a payout of about $1.00 in September. Energy stocks are known for their cyclical nature, but they can also provide strong income during periods of high commodity prices and global demand.

One major tailwind for the energy sector right now is rising global demand—especially for electricity. The rapid expansion of technologies like artificial intelligence, data centers, and electrification is putting increasing pressure on energy infrastructure. According to the International Energy Agency, global electricity demand is expected to grow at an annual rate of about 4% through 2027. That trend could continue to support revenues—and dividends—for energy companies in the years ahead.

This Could Be a Time to Put Safety First

High-yield ETFs can be powerful tools for building a steady stream of passive income, particularly for retirees or those nearing retirement. Whether you’re looking for high monthly income like JEPQ, diversified dividend exposure like VYM, or sector-specific opportunities like VDE, there are options to match a variety of risk tolerances and income goals.

As always, it’s important to consider how these ETFs fit into your broader financial plan. While high yields can be attractive, factors like market volatility, interest rates, and economic conditions can all impact performance and payouts over time.

You can capture these benefits through dividend-focused ETFs like the Vanguard High Dividend Yield ETF (NYSEARCA: VYM). Year to date, as of this writing, it’s outperforming the S&P 500. Since the year began, the S&P 500 is down 3%, compared to the year-to-date 3% returns of the VYM ETF. It also remains one of the best ways to trade dividend growth.  

With an expense ratio of 0.04%, the VYM ETF tracks the performance of the FTSE High Dividend Yield Index, and currently holds 562 stocks, including Broadcom (NASDAQ: AVGO), JPMorgan Chase (NYSE: JPM), Exxon Mobil (NYSE: XOM), Walmart (NASDAQ: WMT), and Johnson & Johnson (NYSE: JNJ).

The VYM ETF also carries a yield of 2.29% and pays a quarterly dividend. On December 23, 2025, it paid a dividend of just over 94 cents. On September 23, it paid out just over 84 cents. And on June 24, it paid out just over 86 cents a share.

Two other high-yield dividend stocks to consider are:

Buy-and-Hold Dividend Stocks: Realty Income

Known as “The Monthly Dividend Company,” Realty Income (NYSE: O) yields about 5%.  It also just increased in its monthly cash dividend to $0.2705 per share from $0.270 per share. The dividend is payable on April 15, 2026, to stockholders of record as of March 31, 2026. The new monthly dividend represents an annualized dividend amount of $3.246 per share as compared to the prior annualized dividend amount of $3.240 per share.

Making it even more attractive, Realty Income is one of the biggest lease real estate investment trusts (REITs) you can buy. It also owns more than 15,600 properties, with a vast majority of those in the retail sector. In fact, some of its biggest tenants include 7-Eleven, Dollar General (NYSE: DG), Walgreen’s, Wynn Resorts (NASDAQ: WYNN), FedEx (NYSE: FDX), BJ’s Wholesale Club (NYSE: BJ), CVS Health (NYSE: CVS), and Tractor Supply (NASDAQ: TSCO).

Buy-and-Hold Dividend Stocks: Verizon

With a yield of about 5.6%, Verizon (NYSE: VZ) is another hot, high-yielding dividend stock to buy and forget about for a while. It also declared a dividend of $0.7075, a 2.5% increase from its prior dividend of $0.69. It’s payable on May 1 to shareholders of record as of April 10.

Recent earnings and guidance were also solid. For the fourth quarter, EPS of $1.09 beat by three cents. Revenue of $36.4 billion, up 2.4% year over year, beat by $200 million. In the quarter, the company also saw total postpaid phone net additions of 616,000, up 22% and ahead of estimates of 420,491. For 2026, Verizon expects total retail postpaid phone net additions of 750,000 to a million and adjusted EPS of $4.90 to $4.95, or growth of 4% to 5%.

Analysts at Raymond James raised their price target on Verizon to $56 from $50, maintaining an outperform rating. Analysts at Scotiabank also upgraded Verizon to sector outperform from sector perform, with a price target of $54.50 per share, up from $50.25, citing cost-cutting.

Avoiding Yield Traps While Locking in Reliable Income

High yields can be attractive, but not all dividends are safe. Some dividend stocks become yield traps when prices fall on weak outlooks. That’s why quality matters just as much as yield.

Funds like VYM focus on financially sound dividend payers. Likewise, Realty Income and Verizon offer durable cash flows. Both companies support payouts with stable, predictable business models.

This balance helps investors avoid chasing unsustainable income.
Instead, they can focus on consistency and long-term returns. In volatile markets, that approach can make a critical difference. Reliable dividends plus stability often outperform over time. For investors seeking income and downside protection, these dividend stocks stand out as smart, disciplined choices.

Dividend ETFs also help investors avoid one of the biggest risks of individual dividend investing: concentration. A single company can cut its dividend during economic downturns, but an ETF spreads that risk across hundreds—or even thousands—of holdings. This built-in diversification can lead to more consistent income and smoother long-term performance.

In addition, ETFs automatically rebalance and adjust holdings as markets change, eliminating the need for constant monitoring. For investors who want dependable income without the time commitment of researching and managing individual stocks, dividend ETFs offer a disciplined and efficient solution.

Vanguard is a popular choice because it offers reliable funds with very low fees. Vanguard’s dividend ETFs are passively managed and inexpensive. None of them charge more than a 0.17% expense ratio, and two cost less than 0.10%. Low fees are a big advantage, but these funds also stand out for their diversification and performance. 

Here’s a simple breakdown of Vanguard’s top dividend ETFs.

Top Dividend ETFs: Vanguard Dividend Appreciation ETF (VIG)

The Vanguard Dividend Appreciation ETF (NYSEARCA: VIG) focuses on companies that regularly increase their dividends. These stocks usually have lower yields, but they often deliver strong long-term growth.

Broadcom (NASDAQ: AVGO) is a good example. Its dividend yield is under 1%, but the stock price has climbed sharply over the past five years. The company also continues to raise its dividend at a healthy pace. This approach favors growing income over time rather than high payouts today.

The fund’s overall yield is about 1.6%, and it has a very low expense ratio of 0.05%. VIG holds more than 300 stocks, mostly large-cap companies. Over the past 10 years, it has produced solid long-term returns. The top 10 holdings make up a little over one-third of the portfolio.

Top Dividend ETFs: Vanguard High Dividend Yield ETF (VYM)

The Vanguard High Dividend Yield ETF (NYSEARCA: VYM) is designed for investors who want higher income right now. It focuses on stocks with above-average dividend yields, resulting in a yield of about 2.5%.

The fund charges a low 0.06% expense ratio. Most of its holdings are large, established companies, with very little exposure to small-cap or growth stocks. 

Major holdings include Broadcom, JPMorgan Chase (NYSE: JPM), and Exxon Mobil (NYSE: XOM). VYM holds more than 500 stocks, which helps reduce risk. Its top 10 positions account for about 27% of the portfolio. Financial and technology stocks make up a large portion of the fund.

Top Dividend ETFs: Vanguard International High Dividend Yield ETF (VYMI)

The Vanguard International High Dividend Yield ETF (NYSEARCA: VYMI) has a similar objective to the VYM, but invests only in international companies that pay strong dividends. The fund has a 0.17% expense ratio, which is higher than the other two, but it also offers a higher yield of about 3.5%. Over the past five years, it has delivered strong annual returns.

VYMI focuses on large-cap stocks and does not include small-cap companies. It holds more than 1,500 stocks, and the top 10 positions make up only 14% of the fund. This wide diversification gives investors exposure to income and growth opportunities around the world.

Ideal Choices for Income and Yield

Vanguard’s dividend ETFs offer a simple, low-cost way to build income into a portfolio without the hassle of managing individual stocks.

Whether an investor prioritizes rising dividends with VIG, higher current income with VYM, or global diversification through VYMI, each fund serves a distinct role while maintaining Vanguard’s hallmark of low fees and broad diversification.

For long-term investors seeking reliable income and steady growth, these ETFs provide flexible options that can be tailored to different income needs and risk preferences.