That’s where dividend-paying exchange-traded funds (ETFs) can help. These funds offer investors a way to collect regular distributions from a diversified portfolio of stocks, potentially reducing the need to sell investments every time another bill comes due.

And some ETFs offer an additional advantage: the opportunity to grow your income over time, helping your savings keep pace with inflation.

For investors approaching retirement or already living on a fixed income, here are three dividend ETFs worth considering.

Vanguard International High Dividend Yield ETF 

Most American investors keep the majority of their investments in U.S. stocks. While that approach has worked well over long periods, it can leave retirement portfolios heavily dependent on the performance of one market.

The Vanguard International High Dividend Yield ETF (NASDAQ: VYMI) offers an alternative, providing exposure to more than 1,500 dividend-paying companies outside the United States.

With a dividend yield recently around 3.6% to 3.7% and an expense ratio of just 0.07%, VYMI combines relatively attractive income with low investment costs.

Its portfolio includes established international businesses such as Nestlé (OTCMKTS: NSRGY), Novartis (NYSE: NVS), Toyota (NYSE: TM), and Shell (NYSE: SHEL). These companies operate across industries and geographic markets, giving investors exposure to different economic conditions and sources of revenue.

What could that mean for your retirement income?

At a hypothetical 3.64% annual yield, a $100,000 investment would generate approximately $3,640 annually before taxes. That’s around $303 per month when averaged over the year, although VYMI distributes quarterly and payment amounts vary.

The bigger appeal is diversification. If U.S. stocks experience a prolonged downturn, international holdings may behave differently, potentially helping balance a retirement portfolio. Investors should remember that foreign stocks also carry currency, political, and economic risks.

For retirees who already own plenty of U.S. stocks, VYMI could provide a useful combination of income and international exposure.

Vanguard Dividend Appreciation ETF 

One of the biggest threats to retirement savings is inflation. Even modest increases in living expenses can significantly erode purchasing power over a 20- or 30-year retirement.

That’s why some retirees prioritize companies that have consistently increased their dividend payments.

The Vanguard Dividend Appreciation ETF (NYSEARCA: VIG) follows that approach, investing in established U.S. businesses with a history of increasing their dividends. Its portfolio includes companies such as Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), JPMorgan Chase (NYSE: JPM), Visa (NYSE: V), and Broadcom (NASDAQ: AVGO). These businesses operate in different industries, but they share a focus on generating the earnings and cash flow that can support shareholder distributions. VIG charges an exceptionally low expense ratio of 0.04% and recently offered a yield of roughly 1.4%. 

Amplify CWP Enhanced Dividend Income ETF M

For retirees who want income deposited into their accounts more frequently, the Amplify CWP Enhanced Dividend Income ETF (NYSEARCA: DIVO) offers an interesting approach.

Unlike traditional dividend ETFs, DIVO combines dividend-paying stocks with a strategy known as covered call writing.

The fund invests in established, large-cap companies with histories of earnings and dividend growth. It then selectively sells call options against certain holdings, collecting premiums that can provide an additional source of income.

That combination allows the fund to generate distributions from both stock dividends and options activity. As of September 30, 2026, DIVO reported an annualized distribution rate of 4.88% and paid distributions monthly. Its expense ratio is 0.56%.

Which ETF Makes the Most Sense for Retirement?

Each of these funds addresses a different retirement concern.

• VYMI could appeal to investors seeking higher dividend income and diversification outside the United States.
• VIG may be better suited to investors who want their dividend income to grow over time while maintaining exposure to established U.S. companies.
• DIVO may interest retirees looking for monthly cash flow and willing to accept the trade-offs associated with covered call strategies.

There’s also a case for combining different approaches. An investor might use dividend growth funds as a foundation while adding international dividend exposure and a smaller allocation to monthly income strategies. The key is to evaluate how much income you actually need, when you need it, and how much investment risk you can comfortably accept.

With these funds, you may be able to supplement your retirement income without relying entirely on selling shares to cover expenses. Dividend ETFs can offer a passive approach to investing, with the potential for regular distributions and long-term growth.

Exchange-traded funds also provide diversification, professional management, and relatively low costs. These features can become increasingly important as you move from accumulating wealth to preserving it and generating income.

Here are three dividend ETFs to consider for a retirement portfolio, each with a different approach to income, diversification, and growth.

VYMI: An International Dividend ETF for Global Diversification

If you want to diversify beyond U.S. markets, the Vanguard International High Dividend Yield Fund ETF (NASDAQ: VYMI) provides access to high-quality global income stocks. It also yields 3.64%.

With an expense ratio of 0.07%, the ETF targets 1,502 global companies, such as Nestle (OTCMKTS: NSRGY), Novartis (NYSE: NVS), Toyota Motor (NYSE: TM), and Shell (NYSE: SHEL). All are established companies with strong balance sheets, global revenue streams, and a history of returning capital to shareholders.

Most recently, the fund paid out a dividend of just over 81 cents on September 22. Before that, it paid out just over $1.25 on June 23. And before that, it paid out just over 70 cents on March 24. Beyond yield, VYMI provides an important portfolio benefit: geographic diversification. Retirees who rely heavily on U.S. stocks may be overexposed to domestic issues. By incorporating international dividend stocks, you can diversify your risk.

VIG: A Dividend Growth ETF for Long-Term Investors

With an expense ratio of 0.04% and a quarterly dividend, the Vanguard Dividend Appreciation ETF (NYSEARCA: VIG) tracks the performance of the S&P U.S. Dividend Growers Index.

In addition, the VIG ETF has just over $127.7 billion in assets under management, a well-diversified portfolio of 333 stocks, and offers a low-cost, resilient, growth-oriented option for smart investors. 

Some of its other holdings include Broadcom (NASDAQ: AVGO), Microsoft (NASDAQ: MSFT), JPMorgan Chase (NYSE: JPM), Apple (NASDAQ: AAPL), Visa (NYSE: V), Eli Lilly (NYSE: LLY), and Exxon Mobil (NYSE: XOM). Making the VIG ETF even more attractive, it yields about 1.51% and just paid out a dividend of just paid a dividend of just over 92 cents per share on September 30. It paid just over 99 cents on June 30, and just over 83 cents on March 31.

Although its yield is lower than that of some high-yield dividend ETFs, VIG offers a different proposition: exposure to businesses that have demonstrated a commitment to growing shareholder payouts. For investors with a longer retirement horizon, that combination may be attractive.

DIVO: A Monthly Dividend ETF With a Covered-Call Strategy

With a monthly yield of 1.4% and an expense ratio of 0.56%, the Amplify CWP Enhanced Dividend Income ETF (NYSEARCA: DIVO) holds large-cap companies that have a strong history of dividend growth. It also uses a covered call strategy on individual stocks to offer high total returns. It also pays a monthly dividend. On September 30, it paid out just over 18 cents per share. On August 31, it paid out just over 19 cents. On July 31, it paid out just over 18 cents.

“DIVO seeks investment results that correspond generally to an existing strategy called the Enhanced Dividend Income Portfolio (EDIP),” as noted by AmplifyETFs.com. That strategy attempts to generate income through dividends and short-term covered calls in an effort to increase cash flow and consistent annual income. 

For retirees who value regular payouts, DIVO may be worth considering alongside traditional dividend growth ETFs. However, its covered-call strategy introduces trade-offs, including the potential to sacrifice some capital appreciation. Its distributions can also vary, and a distribution should not automatically be interpreted as investment income generated solely from dividends.

How to Choose Between These Three Dividend ETFs

VYMI, VIG, and DIVO serve different purposes in an income-focused portfolio.

• VYMI emphasizes international diversification and a comparatively higher dividend yield.
• VIG focuses on companies with a record of dividend growth and offers a low-cost approach to long-term investing.
• DIVO combines dividend-paying stocks with covered calls to pursue monthly cash distributions.

The right choice depends on your priorities. Investors seeking broader geographic exposure may favor VYMI, while those emphasizing dividend growth may prefer VIG. Investors who value monthly distributions may find DIVO more appealing.

Ultimately, dividend ETFs can play a role in a retirement strategy, but no fund guarantees consistent income or protects investors from losses. Distribution amounts can change, share prices can fall, and high yields do not necessarily translate into better total returns.

The goal is to build a diversified portfolio that helps cover today’s expenses while giving your savings room to support tomorrow’s needs.

After all, retirement expenses do not stop when the stock market becomes volatile. That is why many investors use exchange-traded funds, or ETFs, to create a diversified stream of investment income. ETFs can make it easier to own dozens, or even hundreds, of securities through a single investment. They can also help investors combine current income with the potential for long-term capital appreciation.

However, not every income fund works the same way. Some prioritize immediate cash distributions, while others focus on traditional dividends or long-term dividend growth. The following three ETFs offer distinctly different approaches.

How JEPQ Generates Its High Monthly Income

For investors seeking substantial monthly income, the JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ: JEPQ) remains one of the most compelling options.

JEPQ invests primarily in large-cap growth companies while using an options-based strategy to generate additional income. In simple terms, the fund owns a portfolio with significant exposure to Nasdaq-related technology and growth stocks. It then collects option premiums through equity-linked notes tied to a covered-call strategy. Those premiums, along with dividends received from the underlying stocks, help support JEPQ’s monthly distributions.

As of September 2026, JPMorgan reported that JEPQ had delivered a 12-month rolling dividend yield of approximately 10.69% and a 30-day SEC yield of 12.87%. The fund carries an expense ratio of 0.35%. 

VYMI: An Income ETF With International Diversification

The Vanguard International High Dividend Yield ETF (NASDAQ: VYMI) tracks the FTSE All-World ex US High Dividend Yield Index. It invests in dividend-paying companies located outside the United States, including businesses in developed and emerging markets.

Its portfolio provides exposure to sectors such as financial services, energy, healthcare, consumer products, industrials, and telecommunications. Holdings may include recognizable international companies such as HSBC (NYSE: HSBC), Novartis (NYSE: NVS), Roche (OTC: RHHBY), Nestlé (OTC: NSRGY), and Royal Bank of Canada (NYSE: RY).

One important update for 2026 is that Vanguard reduced VYMI’s expense ratio from 0.17% to 0.07%. That means an investor pays approximately $7 in annual fund expenses for every $10,000 invested. Its dividend yield was recently around 3.5%.

VYMI offers more than income. It can help reduce an investor’s dependence on the U.S. economy, the U.S. dollar and a small group of highly valued American technology companies.

VIG Prioritizes Dividend Growth Over High Current Yield

The Vanguard Dividend Appreciation ETF (NYSEARCA: VIG) is another one to consider.

VIG tracks the S&P U.S. Dividend Growers Index, which focuses on established American companies with a history of consistently increasing their dividends. Instead of simply buying the stocks with the highest current yields, the strategy emphasizes companies that have demonstrated the financial strength to raise their payouts over time.

Its portfolio includes major companies from technology, healthcare, financial services, consumer products, energy and other important areas of the economy. Large holdings have included companies such as Broadcom (NASDAQ: AVGO), Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), JPMorgan Chase (NYSE: JPM), Visa (NYSE: V), Eli Lilly (NYSE: LLY), and Exxon Mobil (NYSE: XOM). VIG’s expense ratio has also been reduced and now stands at just 0.04%, or about $4 per year for every $10,000 invested.  

Three Income ETFs, Three Different Strategies

These three ETFs solve different portfolio problems for investors looking for income.

One, JEPQ offers the highest immediate income and monthly distributions. Two, VYMI combines dividend income with international diversification. And third, VIG provides a lower starting yield but emphasizes quality, dividend growth, and long-term appreciation. For many investors, the best answer may not be choosing only one. A carefully balanced combination could provide monthly option income, international exposure, and long-term dividend growth. 

With high-yield funds, you aren’t constantly timing withdrawals or watching market swings. Instead, these funds are a passive investment idea that can deliver consistent income while still offering long-term growth potential.

Some of the best options for finding stocks with high yields are exchange-traded funds (ETFs). ETFs offer diversification, professional management, and low costs. These are three traits that become increasingly important as you move from accumulation to preservation and income. If this sounds like the kind of investment that may fit your portfolio, here are three dividend income ETFs you may want to consider.

Global Dividend Income ETF for International Diversification

If you want to diversify beyond U.S. markets, the Vanguard International High Dividend Yield Fund ETF (NYSEARCA: VYMI) provides access to high-quality global income stocks. It also yields 3.64%.

With an expense ratio of 0.17%, the ETF targets 1,534 global companies, such as Nestle, Novartis, Toyota, and Shell. All are established companies with strong balance sheets, global revenue streams, and a history of returning capital to shareholders.

Most recently, the fund paid out a dividend of just over 79 cents a share on March 24. Before that, it paid 93 cents per share on December 23. It paid just over 70 cents per share on September 23. And before that, it paid a dividend of just over $1.07 per share on June 24. While international dividends can be volatile, with currencies, VYMI has delivered meaningful income over time.

Beyond yield, VYMI provides an important portfolio benefit: geographic diversification. Retirees who rely heavily on U.S. stocks may be overexposed to domestic issues. By incorporating international dividend stocks, you can diversify your risk.

Low-Cost Dividend Growth ETF for Long-Term Stability

 With an expense ratio of 0.04% and a quarterly dividend, the Vanguard Dividend Appreciation ETF (NYSEARCA: VIG) tracks the performance of the S&P U.S. Dividend Growers Index.

In addition, the VIG ETF has a well-diversified portfolio of 334 stocks and offers a low-cost, resilient, growth-oriented option for smart investors. 

Some of its other holdings include Broadcom (NASDAQ: AVGO), Microsoft (NASDAQ: MSFT), JPMorgan Chase (NYSE: JPM), Apple (NASDAQ: AAPL), Visa (NYSE: V), Eli Lilly (NYSE: LLY), and Exxon Mobil (NYSE: XOM). Making the VIG ETF even more attractive, it yields about 1.66% and just paid out a dividend of just over 83 cents per share on March 31. Before that:

• It paid out a dividend of just over 88 cents per share on December 24.
• It paid out a dividend of just over 86 cents per share on October 1.
• It paid out a dividend of just over 87 cents per share on July 2.

High-Yield Covered Call ETF for Enhanced Monthly Income

With a monthly yield of 1.61% and an expense ratio of 0.56%, the Amplify CWP Enhanced Dividend Income ETF (NYSEARCA: DIVO) holds large-cap companies that have a strong history of dividend growth. It also uses a covered call strategy on individual stocks to offer high total returns.

“DIVO seeks investment results that correspond generally to an existing strategy called the Enhanced Dividend Income Portfolio (EDIP),” as noted by AmplifyETFs.com. That strategy attempts to generate income through dividends and short-term covered calls in an effort to increase cash flow and consistent annual income. In addition, with that strategy, the EDIP holds blue-chip stocks from the S&P 500, the Dow 30 and the S&P 100.

It paid a dividend of just over 18 cents per share on April 30.

Why Dividend Income ETFs Belong in a Long-Term Portfolio

At the end of the day, building reliable passive income doesn’t have to involve chasing individual dividend stocks or constantly monitoring market volatility. Dividend income ETFs like VYMI, VIG, and DIVO offer a practical, diversified approach to generating cash flow while reducing single-stock risk. Each fund serves a different purpose—VYMI provides international diversification, VIG focuses on long-term dividend growth, and DIVO offers enhanced income through covered call strategies.

That flexibility allows investors to tailor their exposure based on their stage of life, risk tolerance, and income needs. For retirees, these ETFs can help supplement income streams without requiring active portfolio management. For younger investors, reinvesting those distributions can create powerful compounding over time. In either case, the right mix of dividend income ETFs can help create a portfolio designed to produce income today and financial stability tomorrow.

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.