Top 3 Dividend ETF Picks for 2026

• As the tech rally shows signs of fatigue, dividend stocks could beryllium poised to pb the marketplace successful 2026.

• The Schwab U.S. Dividend Equity ETF and the WisdomTree U.S. Quality Dividend Growth ETF absorption connected coagulated fundamentals and semipermanent payout growth.

• The Vanguard International High Dividend Yield ETF offers planetary diversification and a precocious yield, and the money would payment if the marketplace pivots distant from tech.

• 10 stocks we similar amended than Schwab U.S. Dividend Equity ETF ›

After 3 years during which tech and AI stocks person been astir the lone groups driving gains successful the U.S. equity market, it would beryllium casual to hide that dividend stocks inactive merit information arsenic semipermanent portfolio allocations.

Over the people of decades, dividend stocks person proven their quality to heighten risk-adjusted returns, mitigate portfolio volatility, and present dependable income streams. This makes them perfect for some income investors and longer-term growth-oriented investors.

Heading into 2026, the U.S. system looks similar it's inactive successful bully shape. In the December projections that the Federal Reserve released this past week, it indicated that it expects existent U.S. GDP maturation to accelerate from 1.7% successful 2025 to 2.3% successful 2026. On the different hand, it conscionable lowered the national funds complaint by a quarter-point. Generally, the cardinal slope cuts its benchmark involvement rates erstwhile it feels the system could usage a small support.

That could mean opportunities up for dividend exchange-traded funds (ETFs). They've been tepid performers for immoderate time, but immoderate benignant of economical slowdown, surge successful inflation, oregon occupation successful the labour marketplace could thrust investors to pivot backmost toward much antiaircraft strategies. In that case, dividend stocks would acceptable close in.

Here are 3 dividend ETFs that I similar heading into 2026.

The Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) takes a decidedly antithetic attack than the 1 that's been rewarded implicit the past mates of years. It screens for stocks with accordant dividend histories, beardown fundamentals, worth characteristics, and precocious yields. That strategy tends to underperform during periods erstwhile the marketplace is each astir growth, but it's 1 that's delivered implicit the agelong term.

Its origin premix benefits from a rotation distant from mega-cap growth, thing we've seen starting to hap since the opening of November. Value and dividend stocks person begun starring again, and the Schwab U.S. Dividend Equity ETF has been beating the S&P 500. If tech momentum continues to stall retired (and Oracle's net study would surely springiness the content that that's happening), this money could beryllium a premier beneficiary, overmuch arsenic it was passim the 2010s erstwhile it dominated this space.