#income-investing

#income-investing

Bigger quarterly distributions can really add up over time. For serious yield hunters, the Fidelity High Dividend ETF ( NYSEARCA:FDVV) is a terrific pick in 2025. First and foremost, the FDVV features a trailing 12-month distribution yield of 3.1%. That's not a guarantee of the fund's future yield, but the Fidelity High Dividend ETF has been consistent in rewarding its loyal shareholders over the long term.

During these uncertain times, with further fallout from tariffs still threatening to rear its head, dividend income is more valuable than ever, and one particular dividend ETF , Vanguard's High Dividend Yield Index Fund ETF Shares (VYM) fund, moves to the front of the line. As the name suggests, this ETF targets large-cap domestic stocks that are on the radar to pay higher-than-average dividend yields based on forward dividend yield.

All of the major Wall Street firms we cover here at 24/7 Wall St. have a list of the top stock picks for their institutional and retail clients to invest in. Typically, these are companies that analysts have a high level of conviction in and feel strongly about their fundamentals and forward-looking prospects. In addition, they often have good upside to the assigned price target and are bestowed with either a Buy or Overweight rating, depending on the company providing the coverage.

"Because of the strong dividend income REITs provide, they are an important investment both for retirement savers and for retirees who require a continuing income stream to meet their living expenses. REITs' dividends are substantial because they are required to distribute at least 90% of their taxable income to their shareholders annually. Their dividends are fueled by the stable stream of contractual rents paid by the tenants of their properties," says REIT.com.

Exchange-traded funds are the go-to for conservative investors who have a long timeframe. The yield you get today is very generous compared to just five years ago. Yet, it may not be the wisest idea to have your portfolio concentrated entirely in ETFs that yield in the low single digits. Having some higher-yielding ETFs can give you extra income with negligible added risk if you hold them for the long run.