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.

This morning, oil was up by $1.76 at $89.92, and could gush to $150 if the Iranian war doesn’t end soon, as noted by Claudio Galimberti, chief economist at Rystad Energy, as quoted by CNBC. “At this point, unless we solve [the Middle East conflict], unless we start to see an increase in the flow, then we are going to see lower and lower inventories, which means higher and higher prices,” Galimberti added.

Not helping, Exxon Mobil just warned that oil inventories will hit “really, really low levels” in coming weeks with the conflict. “We’re approaching unheard of inventory levels,” said Exxon Senior Vice President Neil Chapman. “I mean really, really low levels. You can debate whether that’s going to hit, those really low levels, in two weeks or three weeks. Once you get to that point, then you’ll see price shoot up.”

And, according to Trump on social media, “They’ve taken too long to negotiate a deal that would have been great for them, now they will have to pay the price.”

A $150 Oil Scenario Is No Longer Unthinkable

But at this point, it could easily happen with war intensifying again, and with reserves dropping to historically low levels. 

That being said, investors can always jump into oil stocks, such as Exxon Mobil (NYSE: XOM), Chevron (NYSE: CVX), and Occidental Petroleum (NYSE: OXY). However, if you want greater exposure at a lower cost, investors may want to consider exchange-traded funds, such as:

XLE Remains a Top Energy ETF to Watch

With an expense ratio of 0.08%, the SPDR Energy Select Sector ETF (NYSE: XLE) provides exposure to companies in the oil, gas, and consumable fuel, energy equipment, and services industries, as noted by State Street SPDR. From its current price of $57.39, we’d like to see it rally back to $62 initially, with the war showing signs of intensifying again. 

Higher Crude Prices Could Lift XOP

With an expense ratio of 0.35%, the SPDR S&P Oil & Gas Exploration & Production ETF (NYSE: XOP) provides exposure 51 oil and gas exploration and production segment of the S&P TMI, which comprises the following sub-industries: Integrated Oil & Gas, Oil & Gas Exploration & Production, and Oil & Gas Refining & Marketing, as noted by State Street SPDR.  From its current price of $164.05, we’d like to see the XOP ETF retest $190.

IXC Provides Global Energy Exposure

With an expense ratio of 0.40%, the iShares Global Energy ETF (NYSE: IXC) tracks the investment results of an index composed of global equities in the energy sector. Some of its 50 holdings include Exxon Mobil, Chevron Corporation, BP PLC, Total SA, and EOG Resources. From its current price of $53.94, we’d like to see it retest $58 initially.

Navigating Today’s Oil Market

With geopolitical tensions showing few signs of easing and supply concerns mounting, investors will likely continue to keep a close eye on oil prices in the weeks ahead. For those looking to position themselves for further upside without betting on a single company, energy-focused ETFs can provide diversified exposure to a sector that could remain in focus as global uncertainty drives commodity markets higher.

While many investors focus on well-known blue-chip names, some overlooked dividend stocks and dividend-focused ETFs may offer even stronger upside opportunities. Companies like Lowe’s (NYSE: LOW), American States Water (NYSE: AWR), and the Vanguard Dividend Appreciation ETF (NYSEARCA: VIG) combine consistent dividend growth with solid business fundamentals, making them attractive options for income-focused investors in 2026.

Plus, it never hurts to hold dividend stocks – especially when markets get uncontrollably volatile. Not only can they help protect your portfolio, but they can also help generate healthy passive income along the way.

That being said, here are three dividend stocks you may want to consider.

Lowe’s Continues Rewarding Shareholders Despite Market Pressure 

Down, but not out, Lowe’s just raised its quarterly cash dividend to $1.25, which is payable on August 5 to shareholders of record as of July 22. That’s a 4% increase from its prior dividend payout of $1.20. 

“The momentum we are building across our strategic initiatives continues to position Lowe’s for long-term growth,” said Marvin R. Ellison, Lowe’s chairman, president and CEO, as quoted in a company press release. “Today’s dividend increase underscores the board’s confidence in the company’s trajectory, our disciplined capital allocation strategy and our commitment to delivering sustainable shareholder value.”

In addition, the company just delivered a strong Q1 2026 earnings report. The home improvement giant reported EPS of $3.03, which beat by six cents. Revenue of $23.1 billion, up 10.4% year over year, beat by $220 million. Comparable sales also climbed 0.6%, showing that demand for home improvement projects remains resilient despite ongoing pressure from high interest rates and cautious consumer spending.

American States Water Remains a Reliable Dividend King

With a yield of 2.64%, Dividend King American States Water provides water and electric services with a strong history of consistent dividend increases. In fact, it’s paid out a dividend every year since 1931. Its most recent dividend of $0.5040 will be paid out on June 2 to shareholders of record as of May 18. This is now its 360th consecutive dividend payment.

The company has grown its quarterly dividend rate at a compound annual growth rate (CAGR) of 8.5% over the last five years since the second quarter of 2021, and has achieved a 10-year CAGR of 8.3% in its calendar year dividend payments through 2025. The company’s current policy is to achieve a compound annual growth rate in the dividend of more than 7% over the long-term, as noted in its Q1 2026 earnings press release.

Why VIG Remains a Top Dividend ETF for Long-Term Investors

We can also look at ETFs such as the Vanguard Dividend Appreciation ETF, which just paid a dividend of just over 83 cents a share on March 31. Before that, it paid out just over 88 cents per share on December 24, 2025.

With an expense ratio of 0.04% and a monthly yield of 1.56%, the VIG is also an attractive opportunity that tracks the performance of the S&P U.S. Dividend Growers Index and invests in large-cap stocks with a record of dividend growth. Some of the VIG ETF’s 338 holdings include Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Broadcom (NASDAQ: AVGO), JPMorgan (NYSE: JPM), Eli Lilly (NYSE: LLY), Visa (NYSE: V), Exxon Mobil (NYSE: XOM), UnitedHealth Group (NYSE: UNH), Mastercard (NYSE: MA) and Costco Wholesale (NASDAQ: COST).

Final Thoughts on Overlooked Dividend Stocks

In uncertain markets, overlooked dividend stocks like these can offer a valuable combination of income, consistency, and upside potential — making them worth a closer look for investors focused on building wealth over time. Lowe’s continues to benefit from resilient home improvement demand, American States Water offers one of the strongest dividend track records on the market, and the Vanguard Dividend Appreciation ETF provides diversified exposure to companies with a history of rewarding shareholders.

Between rising geopolitical tensions and ongoing economic uncertainty, fear has started to creep back into the market. As a result, some investors are choosing to pull their money out altogether. However, this is often a costly mistake. Selling during periods of volatility can lock in losses and prevent investors from participating in the eventual recovery.

Why Dividend ETFs Can Help Reduce Market Volatility

It’s important to remember that markets have endured far worse pullbacks in the past—and have consistently bounced back over time. Instead of abandoning the market, a more effective strategy is to stay invested while reducing risk through diversification. One way to do that is by adding income-generating dividend ETFs to your portfolio. These funds can help investors generate cash flow while maintaining exposure to equities during uncertain periods.

Fidelity High Dividend ETF Combines Income and Growth

The Fidelity High Dividend ETF (NYSEARCA: FDVV) is a solid choice for investors seeking a balance of income and growth. With an expense ratio of just 0.16% and a yield of about 3.26%, FDVV tracks the Fidelity High Dividend Index. This index focuses on large- and mid-cap companies that not only pay dividends but are also expected to grow those payouts over time.

The fund holds a diversified mix of well-established companies across multiple sectors. Some of its top holdings include Apple Inc. (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), NVIDIA (NASDAQ: NVDA), JPMorgan Chase (NYSE: JPM), Visa Inc. (NYSE: V), Exxon Mobil (NYSE: XOM), Philip Morris International (NYSE: PM), and Procter & Gamble (NYSE: PG).

iShares Core High Dividend ETF Focuses on Stability

Another strong option is the iShares Core High Dividend ETF (NYSEARCA: HDV), which tracks an index of relatively high-dividend-paying U.S. equities.

HDV stands out for its low expense ratio of 0.08% and a yield of around 3.3%. The fund focuses on financially healthy companies with strong dividend sustainability, making it an attractive option for conservative investors.

The ETF holds about 75 companies, including major names like Exxon Mobil, Johnson & Johnson (NYSE: JNJ), Chevron Corporation (NYSE: CVX), AbbVie (NYSE: ABBV), AT&T (NYSE:T), and The Coca-Cola Company (NYSE: KO). Because of its focus on stable, high-quality dividend payers, HDV can help reduce volatility while providing consistent income—an appealing combination during uncertain market conditions.

JPMorgan Nasdaq Equity Premium Income ETF Offers Double-Digit Yield Potential

For investors seeking higher income potential, the JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ: JEPQ) is one of the most compelling options available today.

JEPQ offers a significantly higher yield—around 10%—and is designed to deliver monthly income while maintaining exposure to U.S. large-cap growth stocks.

What sets JEPQ apart is its use of a covered-call strategy. The fund generates income by selling options on Nasdaq-linked securities while holding a portfolio of large-cap growth companies. The premiums collected from these options are then distributed to investors, creating a steady stream of income.

This approach allows investors to benefit from income generation while still participating, to some extent, in the growth potential of the Nasdaq. However, it’s worth noting that covered-call strategies can limit upside during strong bull markets.

Dividend ETFs Can Help Investors Stay Defensive Without Leaving the Market

In times of market volatility, staying invested is crucial. Rather than reacting emotionally and exiting the market, investors can strengthen their portfolios by incorporating diversified, income-producing dividend ETFs.

Funds like FDVV, HDV, and JEPQ offer different approaches to balancing income, diversification, and downside protection. Some prioritize dividend growth and stability, while others focus on maximizing monthly income through option-based strategies. For investors looking to remain invested during uncertain conditions, dividend ETFs can provide a practical way to reduce portfolio volatility while continuing to generate cash flow and participate in long-term market growth.

How Geopolitics Are Heating Up the Energy Trade 

Energy stocks have been the hot trade since the United States and Israel began military operations against Iran. The subsequent closing of the Strait of Hormuz added more volatility to a super-charged market.  

With the Middle East and oil prices in flux, many traders are looking for asymmetric opportunities. But those come with risk, particularly if you’re caught in a long position when oil prices reverse. Of course, when that will be is anyone’s guess. But as of May 8, oil prices were moving lower on anticipation of a resolution. Or at least, the idea that the parties would begin earnest negotiation to that end. 

How Exxon Mobil and Chevron Are Similar and Why It Matters? 

ExxonMobil and Chevron are integrated oil companies with global portfolios including projects in the coveted Permian Basin as well as in Guyana. Chevron gained access to the latter through its merger with Hess, which was completed in July 2025. However, Exxon Mobil retains rights to some of the projects it had with Hess prior to the merger. 

Both companies are at the top of the list when it comes to executing the Trump administration’s plan for U.S. energy independence. They have the scale and the balance sheet to help increase production and keep it flowing.  

Reading the Earnings Reports 

When companies report earnings, the “headline numbers” (e.g., revenue and earnings per share) get the headlines. But earnings reports are progress reports and are both backward and forward-looking. That’s why it’s important for investors to look beyond the headlines.  

The Q1 reports from ExxonMobil and Chevron are a good example of this. ExxonMobil posted GAAP earnings of $4.2 billion, which looks modest until you strip out a $706 million charge related to Middle East supply disruptions. Specifically, physical delivery failures on hedges after Qatari LNG facilities were struck.  

Adjusted for that and for mark-to-market timing effects on open derivative positions, XOM earned $8.8 billion. Cash flow from operations came in at $8.7 billion, or $13.8 billion excluding margin postings, above the company’s own 12-quarter average. ExxonMobil paid out $9.2 billion to shareholders in a single quarter. 

Chevron’s quarter was shakier. GAAP earnings of $2.2 billion adjusted to $2.8 billion, with the downstream segment acting as the primary drag. International downstream posted an adjusted loss of over $1 billion, driven largely by $1.47 billion in negative timing effects on derivative positions.  

Strip those out and the underlying business looks considerably better, with adjusted upstream earnings of $4.1 billion and production climbing to 3,858 thousand barrels of oil equivalent per day — boosted by contributions from the Hess integration. Chevron returned $6 billion to shareholders through dividends and buybacks and notably kept its full-year guidance unchanged. 

Both companies responded differently to the Middle East disruption. ExxonMobil has roughly 20% of its global production tied to the region and absorbed a direct operational and financial hit. Chevron’s regional exposure was more limited, reporting only modest production impacts.

That said, both companies benefited from the macro tailwind of the energy trade. That is, crude prices posted their largest-ever monthly gain; LNG spot prices are surging, and refining margins are running above historical averages. 

What Happens If There’s a Peace Deal? 

This is the question every energy investor should be asking right now. A Strait of Hormuz resolution would likely mean lower crude prices, compressed LNG premiums, and normalizing refining margins — essentially unwinding the primary tailwind both stocks have been riding. Neither name is immune to that scenario. The question is which company holds up better when the trade reverses. 

ExxonMobil has accumulated $15.6 billion in structural cost savings since 2019. That’s more than all other major international oil companies combined, as measured by its own accounting. That cost base gives XOM lower effective breakeven and more durable earnings at subdued prices. Its 2030 plan projects $25 billion in earnings growth and $35 billion in cash flow growth at constant prices, meaning the growth story doesn’t depend on oil staying elevated. Chevron’s equivalent cost reduction target is $3 to $4 billion by year-end 2026. That’s meaningful, but just a fraction of XOM’s cumulative effort. 

The Technical Picture 

The charts add important context. XOM is trading around $144.57 after pulling back sharply from a March peak near $178. The RSI sits at 37, approaching oversold territory, while the MACD remains in negative territory but is beginning to turn. The stock has found support near the $140 level, which corresponds to a prior area of consolidation from late 2025. A bounce from current levels would have technical merit — and the fundamental story hasn’t deteriorated. 

CVX tells a similar technical story. Trading near $181.62 after retreating from highs above $210, its RSI of 38 is also approaching oversold conditions. The MACD pattern mirrors XOM’s, negative but showing early signs of flattening. CVX has held support around the $175-180 zone, which was a prior breakout level in late 2025. 

Both charts look like they’re searching for a bottom. Neither is in free fall. 

Which Name Is the Better Short-Term Choice in the Energy Trade 

For long-term investors, both names deserve a spot in a diversified portfolio. The energy sector’s structural role in the global economy isn’t going away, and both companies have the balance sheets and capital discipline to reward patient shareholders through multiple price cycles. 

For traders looking at the shorter-term energy trade, ExxonMobil has the edge. Its earnings quality is stronger, its cost structure is more resilient, its balance sheet is cleaner — net debt-to-capital of just 13% versus Chevron’s more leveraged position — and its operational execution in Guyana and the Permian gives it durable volume growth that doesn’t require conflict to continue. Chevron’s Hess arbitration overhang introduces binary risk that XOM simply doesn’t carry. 

Both stocks are near technical support. If oil prices stabilize and the macro backdrop holds, either could reward buyers at current levels. But if you’re choosing one, XOM’s fundamentals make the stronger case. 

Dividend ETFs give investors exposure to diversified baskets of companies with strong histories of paying and growing shareholder payouts. Many of these businesses are mature, financially stable firms capable of generating reliable cash flow even during economic slowdowns. That combination of diversification, dependable income, and lower stress makes dividend ETFs especially attractive for retirees and conservative investors.

For investors looking to build volatility-resistant portfolios, these three dividend ETFs stand out for their history of reliable payouts and strong underlying holdings.

SPDR S&P Dividend ETF Offers Reliable Dividend Growth

The SPDR S&P Dividend ETF (NYSEARCA: SDY) invests in companies that have increased dividends for at least 20 consecutive years. With an expense ratio of 0.35%, the ETF yields about 2.46% and gives investors exposure to some of the market’s most dependable dividend payers.

These companies have maintained and increased payouts through major market disruptions, including the dot-com crash, the 2008 financial crisis, and the COVID-19 pandemic. That consistency can help investors stay confident during periods of uncertainty.

Some of SDY’s top holdings include Verizon (NYSE: VZ), Realty Income (NYSE: O), Target (NYSE: TGT), Chevron (NYSE: CVX), Kimberly-Clark (NYSE: KMB), and Exxon Mobil (NYSE: XOM). These companies operate in defensive industries and generate the kind of steady cash flow that supports long-term dividend growth.

Invesco SPHD Combines High Dividend Yield With Low Volatility

With an expense ratio of 0.30%, the Invesco S&P 500 High Dividend Low Volatility ETF (NYSEARCA: SPHD) focuses on two key investor priorities: strong dividend income and reduced volatility. The ETF currently offers a yield of approximately 4.66%, making it especially attractive for retirees and income-focused investors.

One of SPHD’s biggest advantages is its monthly dividend payout schedule. Monthly payments can make budgeting easier for investors relying on portfolio income to cover living expenses.

The ETF holds 50 stocks selected for both high yield and historically lower volatility. Top holdings include ConAgra Brands, Verizon, Altria Group, Pfizer, VICI Properties, and ONEOK Inc.

SPHD has also demonstrated a consistent payout history. It recently paid a dividend of just over 20 cents per share on April 24, following similar payouts in March and February. That consistency may appeal to investors seeking predictable income streams during uncertain economic conditions.

Vanguard Dividend Appreciation ETF Focuses on Long-Term Quality 

The Vanguard Dividend Appreciation ETF (NYSEARCA: VIG) takes a different approach by emphasizing long-term dividend growth instead of simply chasing higher yields. With an extremely low expense ratio of 0.05% and a yield of approximately 1.56%, VIG is designed for investors seeking quality and stability over time.

The ETF tracks the S&P U.S. Dividend Growers Index and invests in large-cap companies with strong histories of increasing dividends. Many of these businesses also benefit from durable competitive advantages and strong balance sheets.

Among VIG’s 338 holdings are Apple, Microsoft, Broadcom, JPMorgan, Eli Lilly, Visa, Exxon Mobil, UnitedHealth Group, Mastercard, and Costco Wholesale. These are companies with strong earnings power that can continue rewarding shareholders even during slower economic periods.

VIG pays a quarterly dividend and most recently distributed just over 83 cents per share on March 31 after paying more than 88 cents per share in December.

Dividend ETFs Can Help Investors Stay Calm During Volatility

Market volatility is never comfortable, but it doesn’t have to derail a long-term investment strategy. For income-focused investors, dividend ETFs can provide stability by delivering regular payouts while still offering exposure to quality companies with proven track records.

Funds like the SPDR S&P Dividend ETF, Invesco S&P 500 High Dividend Low Volatility ETF, and Vanguard Dividend Appreciation ETF each offer a different approach to generating income, whether through higher yields, lower volatility, or long-term dividend growth. While no investment is completely immune to market swings, owning diversified ETFs filled with financially strong companies can make it easier to stay invested during uncertain times. 

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.

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 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.

And while President Trump is determined to reach a deal, officials in Israel say that it’s unlikely that Iran would agree to U.S. demands. 

Sure, the idea of positive talks between Iran and the U.S. sent markets screaming higher yesterday. However, “No negotiations have been held with the US,” Mohammad Bagher Qalibaf, the speaker of Iran’s parliament, said, as quoted by the Associated Press. “And fakenews is used to manipulate the financial and oil markets and escape the quagmire in which the US and Israel are trapped.”

That’s creating even more uncertainty, with investors unsure of what’s really happening. As we all know, markets hate uncertainty, which is why markets are red again. Adding to that uncertainty, analysts at Citigroup (NYSE: C) believe oil could eventually test $200.

“We posit that the ongoing loss of energy supply to [the] global economy is so large (larger than the shocks of the 1970s as a share of oil supply) that it simply must be solved, either militarily or diplomatically, and that through various potential channels this occurs by mid-late April,” said the firm, as quoted by MarketWatch.com.

The firm expects things to only get worse, with Brent possibly running to at least $120 over the next month. If we see prolonged energy production through June, $200 oil could become a reality. “They come up with that number based on the typical relationship between inventory and price, given the world is now without 13.5 million barrels per day, taking out some 400 million barrels per month, due to Strait of Hormuz disruptions,” added MarketWatch.com.

That would aggressively force oil stocks and ETFs higher until demand destruction sets in.

So, what’s the best way to trade the news?

Investors can always jump into Exxon Mobil (NYSE: XOM), Chevron (NYSE: CVX), and Occidental Petroleum (NYSE: OXY). However, if you want to diversify at a lower cost, ETFs offer good value.  In fact, here are three energy ETFs pushing higher with oil that we’ve been pounding the table over for months.

SPDR Energy Select Sector ETF (XLE)

With an expense ratio of 0.09%, the Energy Select Sector SPDR Fund (NYSEARCA: XLE) provides exposure to companies in the oil, gas and consumable fuel, energy equipment and services industries, as noted by State Street SPDR. Since February 20, the XLE ETF has run from about $54.50 to a high of $59.80.

SPDR S&P Oil & Gas Exploration & Production ETF (XOP)

With an expense ratio of 0.35%, the SPDR S&P Oil & Gas Exploration & Production ETF (NYSEARCA: XOP) provides exposure to 51 stocks in the oil and gas exploration and production segment of the S&P TMI, which comprises the following sub-industries: Integrated Oil & Gas, Oil & Gas Exploration & Production, and Oil & Gas Refining & Marketing, as noted by State Street SPDR. Since February 20, the XOP ETF has run from about $150 to $175.

iShares Global Energy ETF (IXC)

With an expense ratio of 0.40%, the iShares Global Energy ETF (NYSEARCA: IXC) seeks to track the investment results of an index composed of global equities in the energy sector. Some of its 50 holdings include Exxon Mobil, Chevron Corporation, BP PLC (NYSE: BP), Total SA, and EOG Resources (NYSE: EOG). Since February 20, the IXC ETF has run from about $50.60 to $55.90 so far.

Best Energy ETFs to Watch as Oil Prices Rise

With geopolitical tensions showing no sign of easing and oil prices under continued pressure from Strait of Hormuz disruptions, energy ETFs remain one of the most compelling opportunities in the market. XLE, XOP, and IXC have all demonstrated strong momentum since late February, and analysts warn that further price spikes could push these funds even higher.

For investors seeking diversified exposure to rising oil prices without picking individual stocks, energy ETFs offer a cost-effective, flexible solution worth watching closely.