3 High-Yield Dividend ETFs to Buy Today | The Motley Fool

High-yield products appear to be gaining in popularity in 2025. Most of the excitement is centered around the single-stock, leveraged , and derivative income funds that are highly volatile and highly risky, but also offer attractive yields. I still prefer the more traditional high-income products. ETFs that invest in equities with above-average yields or use conservative covered-call strategies are ideally suited to deliver consistent high yield without putting your capital at significant risk. As we close the books on 2025 and move forward into 2026, we're starting to see signs that the megacap tech rally is losing momentum and the market is beginning to broaden. That means opportunities could emerge outside of what's in the spotlight today. Image source: Getty Images. Here are three high-yield dividend ETFs I believe are worth consideration today, each for a different reason. 1. JPMorgan Equity Premium Income ETF The JPMorgan Equity Premium Income ETF ( JEPI +0.26%) hasn't necessarily been out of the spotlight, but it hasn't been garnering the returns it once did. But in the right environment, like the one we experienced in 2022, it can perform exceptionally well. JEPI starts with a primarily defensive equity portfolio and layers on out-of-the-money S&P 500 ( ^GSPC +0.32%) call options to generate high income. Yields can vary depending on conditions and market volatility, but the current yield of 8.2% (as of Nov. 30) isn't uncommon for this ETF. NYSEMKT: JEPI Key Data Points How well this fund can perform depends on how well defensive-oriented stocks are performing. When tech and artificial intelligence (AI) stocks are leading, as they have for a while now, JEPI tends to underperform. If we enter more of a risk-off environment where investors are seeking safety, that's where JEPI can really shine. With the U.S. economy showing signs of slowing down and the labor market weakening, the JPMorgan Equity Premium Income ETF could be setting up to do very well. 2. SPDR Portfolio S&P 500 High Dividend ETF The strategy of the SPDR Portfolio S&P 500 High Dividend ETF ( SPYD +0.65%) is very simple: Invest in the 80 highest-yielding stocks of the S&P 500 and equal-weight them. It's one of the purest ways of generating high yield from large-cap stocks. This methodology helps produce a portfolio that's very different from the S&P 500, one that emphasizes REITs, financials , and consumer staples stocks. That makes it a good diversifier. Targeting stocks purely by yield can have its drawbacks, but the fact that SPYD only looks at S&P 500 stocks helps mitigate some of that risk. It currently yields 4.7% (as of Dec. 19). NYSEMKT: SPYD Key Data Points Here are the risks. There are no screens for dividend quality or dividend growth to act as a cross-check. That means yield traps could show up in the portfolio. These are yields that are high because the share price has dropped significantly or may be at risk of a dividend cut. Overall, the combination of high yield from more defensive large-cap...

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