These 2 Dividend ETFs Are Beating the S&P 500 -- Which Should You Buy?

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Ben Gran, The Motley Fool

Tue, June 2, 2026 astatine 5:07 AM CDT 5 min read

Dividend stocks don't ever bushed the remainder of the banal market. In the past fewer years, investors person placed a premium connected maturation stocks, similar large tech names and artificial quality (AI) stocks. High-yield dividend stocks are often extracurricular of this portion of the market.

Instead of accelerated growth, dividend stocks thin to connection little volatility and dependable income. The best dividend stocks are often successful slower-growing sectors similar energy, pharmaceuticals, and fiscal services.

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But truthful acold successful 2026, 2 fashionable exchange-traded funds (ETFs) focused connected dividend stocks are outperforming the broader S&P 500 index. The Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) has delivered a full instrumentality of 19.7% twelvemonth to date, portion the iShares Core High Dividend ETF (NYSEMKT: HDV) has returned 14.1%.

Both funds absorption connected U.S. stocks that are expected to wage higher-than-average dividend yields. And truthful acold successful 2026, they're delivering large results. Let's spot which of these dividend banal ETFs is simply a amended buy.

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1. iShares Core High Dividend ETF -- 74 stocks, 2.9% dividend output

The iShares Core High Dividend ETF is simply a low-cost scale money that tracks a Morningstar scale of high-yield dividend stocks. Its disbursal ratio is lone 0.08%, and arsenic of May 27, it holds 74 stocks that person delivered a trailing-12-month dividend output of 2.9%.

This money is dense connected non-tech stocks. Its apical holdings by assemblage include:

Consumer staples (24.5% of the fund)
Energy (20.8%)
Healthcare (16.9%)
Financials (10.7%)
Utilities (9%)

Information exertion stocks marque up lone 8.7% of this ETF's assets. If you're acrophobic that different scale funds similar S&P 500 ETFs person go excessively top-heavy with AI and tech stocks, this money could beryllium a amended mode to diversify into different parts of the market.

The iShares fund's apical 5 banal holdings (as of May 27) are:

Energy majors ExxonMobil, astatine 8.1% of the fund, and Chevron, astatine 6.1%
Healthcare stocks Johnson & Johnson at 5.7%, and AbbVie at 5.6%
Consumer staples conglomerate Philip Morris, astatine 4.6%

The lone tech banal successful this ETF's apical 10 holdings is Texas Instruments, which represents conscionable implicit 4% of the fund's assets.

The iShares Core High Dividend ETF has delivered annualized returns of 14% implicit the past 3 years and 11.4% implicit the past five. During some of those longer clip frames, the money has underperformed the S&P 500.

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