Best 3 Dividend ETF Picks for the Second Half of 2026

The first half of 2026 was a good one for dividend ETFs.

The Vanguard S&P 500 ETF delivered an impressive 10% return, but the WisdomTree U.S. Total Dividend ETF, which could be used as a proxy for the entire dividend stock universe, beat it by nearly one percentage point.

The Schwab U.S. Dividend Equity ETF (SCHD 0.12%) and the Vanguard High Dividend Yield ETF did even better, returning 17.5% and 11.4%, respectively.

While tech is still the best-performing S&P 500 sector year to date, it's showing some signs of buckling. Semiconductor stocks, represented by the VanEck Semiconductor ETF, are down more than 10% from their highs. Most of the "Magnificent Seven" stocks are well off their highs, including Nvidia and Microsoft.

Dividend stocks have already had a solid year. If the pivot away from tech and growth continues, they could do even better. Here are three that I think look especially attractive in the second half.

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Schwab U.S. Dividend Equity ETF

It's difficult to not pick this ETF when it's humming. It's currently among the top 10 year-to-date performers within the U.S. dividend ETF category and is hitting on several factors:

• High-yield dividend stocks have generally outperformed the broader dividend equity universe.
• The quality factor, represented by the Invesco S&P 500 Quality ETF, is beating the Vanguard S&P 500 ETF by about six percentage points year to date.
• Significant overweights to consumer staples and energy have paid off.

The multipronged strategy of the Schwab U.S. Dividend Equity ETF is ideal for owning at almost any time. But its strategy is especially in favor right now.

iShares Core High Dividend ETF

As mentioned, high-yield equities are leading the dividend ETF category. The iShares Core High Dividend ETF (HDV 0.59%) targets these stocks, but the addition of a pair of Morningstar quality screens is helping juice performance in much the same way that it's doing for SCHD.

This ETF is also heavily overweight to consumer staples, healthcare, and energy stocks. If the market continues to pivot back in a more defensive direction, the fund's current sector allocation should be poised to benefit.

JPMorgan Equity Premium Income ETF

The JPMorgan Equity Premium Income ETF's (JEPI +0.19%) recent performance hasn't kept up with the hype it generated back in 2022. You'd expect covered call strategies like this one to underperform the S&P 500 during extended bull markets, but this fund has been lagging even its peer category average since 2023.

But its composition and structure actually set it up pretty nicely for the remainder of the year. Low-volatility stocks, which this fund uses as its equity foundation, had a strong finish to the first half. They have a favorable relative backdrop with inflation elevated and Fed rate cuts looking very unlikely. The current yield of 8% should also help add to total return potential.

Tech stocks are still getting most of the attention in 2026. Dividend stocks, however, could be the best performers in the second half of the year.