Is 2026 the Year of Dividend Stocks? These 2 Income-Focused ETFs Have Been Soaring Past the S&P 500

In erstwhile years, investors person been focused connected maturation stocks and high-powered tech companies. But successful 2026, determination appears to person been a wide alteration successful strategy for investors. Rather than continuing to pursuit high-valued stocks, investors person been focusing much connected dividend stocks.

Since the commencement of the year, the S&P 500 has risen by little than 2%, and the Roundhill Magnificent Seven ETF, which includes the apical tech stocks successful the "Magnificent Seven," is down much than 3%. What's astonishing is that it's been dividend stocks that person been the amended buys of late.

Will AI make the world's archetypal trillionaire? Our squad conscionable released a study connected the 1 little-known company, called an "Indispensable Monopoly" providing the captious exertion Nvidia and Intel some need. Continue »

The iShares Select Dividend ETF (NASDAQ: DVY) and the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) are some beating the market, and it's not adjacent close. Here's however good they've been doing frankincense acold and wherefore they tin beryllium large options for income investors today.

This iShares exchange-traded money (ETF) focuses connected U.S. companies that person been paying dividends for astatine slightest 5 years, with the absorption being to springiness investors entree to reliable income investments.

There are astir 100 stocks successful the ETF, and 1 of the large reasons it's been doing good is that its apical holding is Seagate Technology, which accounts for conscionable nether 4% of the fund's portfolio. The information retention banal has benefited from rising request for its products arsenic a effect of an summation successful tech spending. Year to date, Seagate's banal is up much than 50%, which has fixed the iShares Select Dividend ETF a boost on the way.

There are different prime dividend stocks successful the ETF; they simply whitethorn not beryllium arsenic flashy oregon breathtaking arsenic Seagate close now. Pfizer and Verizon Communications are apical stocks successful the money arsenic well, and tin beryllium prime investments to clasp for the agelong term.

Overall, this tin beryllium a coagulated income-generating ETF to bent connected to, with the iShares money yielding astir 3.4%, which is much than 3 times the S&P 500 mean of 1.1%. The ETF's disbursal ratio of 0.38% besides isn't terribly high.

The Schwab U.S. Dividend Equity ETF has been an adjacent hotter concern to ain this year, and it excessively has benefited from a mates of high-flying stocks being among its largest holdings. Lockheed Martin and Texas Instruments each marque up much than 4% of the ETF's holdings, and some of these stocks are up much than 25% for the year, arsenic of Monday's close.