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7 Dividend ETFs to Buy with $2,000 and Hold Forever

Yahoo Finance • • 2 min read • Intermediate
ETFs Income Investing Stocks Personal Finance #SCHD #dividend-etf #high-dividend #buy-and-hold #income-portfolio #VIG #VYM #dividend-aristocrats
Investors seeking steady income and long-term growth can build a durable core with dividend-focused exchange-traded funds (ETFs). With $2,000, you can assemble a diversified, low-maintenance dividend sleeve by choosing funds that emphasize quality, consistent payouts and reasonably low costs. Here are seven ETFs that merit consideration for a buy-and-hold portfolio.

1) SCHD (Schwab U.S. Dividend Equity ETF) — A popular choice for dividend growth and quality screening, SCHD targets U.S. companies with solid cash flows and consistent dividends. Its blend of yield and underlying quality makes it a convenient single-fund core.

2) VIG (Vanguard Dividend Appreciation ETF) — VIG focuses on firms with a record of growing dividends over time. It favors companies with durable business models and can provide steady total returns alongside rising income.

3) VYM (Vanguard High Dividend Yield ETF) — For investors emphasizing current yield, VYM covers a broad set of high-dividend U.S. stocks. It’s a straightforward way to boost income without excessive concentration.

4) SDY (SPDR S&P Dividend ETF) — SDY tracks the S&P Composite 1500 Dividend Aristocrats, companies that have increased dividends for many consecutive years. That history of persistence appeals to conservative income investors.

5) DVY (iShares Select Dividend ETF) — DVY tilts toward higher-yielding names and sectors, offering a complementary exposure to the growth-focused dividend ETFs in this list.

6) NOBL (ProShares S&P 500 Dividend Aristocrats ETF) — NOBL gives targeted exposure to S&P 500 companies with long dividend-growth records, combining Blue Chip stability with an income emphasis.

7) HDV (iShares Core High Dividend ETF) — HDV concentrates on high-quality, high-yielding companies screened for financial health, offering another mix of yield and durability.

With $2,000, investors can spread allocations across several of these funds or pick two to three as primary holdings—either way, reinvesting dividends and periodic rebalancing will compound returns over time. Each fund brings a slightly different tilt (yield, growth, quality, or aristocrat exposure), so combining them helps reduce single-fund concentration risk. As always, consider expense ratios, tax efficiency, and your risk tolerance before committing capital. These ETFs provide a practical, long-term framework for income-oriented investors aiming to buy and hold.