These 2 Dividend ETFs Are Beating the S&P 500 -- Which Should You Buy?
2026-06-02 06:07:00 ET
Dividend stocks don't always beat the rest of the stock market. In the past few years, investors have placed a premium on growth stocks, like major tech names and artificial intelligence (AI) stocks. High-yield dividend stocks are often outside of this part of the market.
Instead of rapid growth, dividend stocks tend to offer lower volatility and steady income. The best dividend stocks are often in slower-growing sectors like energy, pharmaceuticals, and financial services.
But so far in 2026, two popular exchange-traded funds (ETFs) focused on dividend stocks are outperforming the broader S&P 500 index. The Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) has delivered a total return of 19.7% year to date, while the iShares Core High Dividend ETF (NYSEMKT: HDV) has returned 14.1%.
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