Motley Fool Recommends 12 Dividend ETFs as Payers Beat Non-Payers 9.20% to 4.21%

5 articles · Updated · The Motley Fool · May 13

12 dividend-focused ETFs made Motley Fool’s long-term buy list, spanning high-yield preferred-stock funds, REIT and energy exposure, dividend-equity strategies, and a broad S&P 500 index option.
Ned Davis Research and Hartford Funds data underpinned the case: from 1973 to 2025, dividend growers and initiators returned 10.22% annually, versus 9.20% for dividend payers and 4.21% for non-payers.
The screen highlights a trade-off between income and growth, with some funds such as Schwab U.S. Dividend Equity ETF and State Street’s S&P 500 High Dividend ETF cited as balancing both.
Morningstar data as of May 11 showed current yields ranging from 1.08% to 5.65%, while the article argued dividends can cushion volatility, keep paying through downturns, and reduce the need to sell shares in retirement.

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