High-Dividend ETF Recommendations

High-dividend ETFs are exchange-traded funds composed of stocks with dividend yields significantly above the market average (around 1.5–2%). Generally, ETFs with yields above 3% are classified as high-dividend. Covered call strategy ETFs can offer even higher yields of 7–12%. They are popular among retirees and income investors seeking regular cash flow.

High-dividend ETFs fall into two categories. Traditional high-dividend ETFs (SPYD, VYM, etc.) invest in large-cap stocks with high yields and tend to have relatively stable price movements. Covered call/income ETFs (QYLD, JEPI, etc.) achieve higher yields through option-selling strategies, but have limited upside potential in bull markets.

A key risk when investing in high-dividend ETFs is the "dividend trap." Excessively high yields may be an illusion caused by falling share prices or the result of unsustainable dividend policies. It is important to check the payout ratio, dividend growth rate, and total return together, and to maintain appropriate portfolio weighting.