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    Buffett’s Favorite ETF — Plus 2 Big Yielders - 9/24

    Ian Cooper
    Wednesday, September 24, 20255 min read
    Buffett’s Favorite ETF — Plus 2 Big Yielders - 9/24

    3 Hot Dividend ETFs to Buy and Hold Now


    When it comes to building wealth and creating consistent income, dividend-paying exchange traded funds (ETFs) are tough to beat.


    Not only can they provide regular cash flow, but they also offer exposure to a diversified basket of stocks. That means less risk than betting on a single company, and more stability for long-term investors.


    And while most savings accounts pay next to nothing — even with the Federal Reserve’s recent rate cuts — there are ETFs paying yields of 5%, 7%, or more. For income seekers, that makes them an attractive alternative.


    Here are three dividend-heavy ETFs worth considering right now.








    ETF: Vanguard S&P 500 ETF (SYM: VOO)


    When billionaire Warren Buffett was asked what he’d recommend for most investors, his answer was simple: a low-cost S&P 500 index fund.


    And one of the best in that category is the Vanguard S&P 500 ETF (SYM: VOO).

    Why VOO Stands Out




    • Diversification: VOO holds 500 of the largest U.S. companies across all major sectors. That includes tech giants like Nvidia, Microsoft, Apple, and Amazon — plus blue-chip leaders like Berkshire Hathaway and Alphabet.




    • Low cost: With an expense ratio of just 0.03%, almost every dollar invested goes to work.




    • Dividends: VOO pays a reliable quarterly dividend. Most recently, it distributed $1.74 per share in July and $1.81 in March.




    Price Momentum


    VOO has also been a winner for growth-oriented investors. Since bottoming at $450 in April, it has surged to around $613 per share. If momentum continues, we could see it test the $650 level in the near term.


    Bottom line: VOO is the definition of a “buy and hold” investment. It’s not the highest yielder on this list, but its combination of growth and steady payouts makes it a cornerstone ETF for long-term portfolios.



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    ETF: Invesco KBW Premium Yield Equity REIT ETF (SYM: KBWY)


    If you’re looking for high yield, real estate investment trusts (REITs) can be an excellent choice. And the Invesco KBW Premium Yield Equity REIT ETF (SYM: KBWY) provides exposure to some of the strongest names in that space.

    Why KBWY is Attractive




    • Yield: The fund currently offers a hefty 7.84% yield, making it one of the most attractive income plays in the REIT category.




    • Focus: KBWY invests at least 90% of its assets in small and mid-cap equity REITs listed in the U.S.




    • Top holdings: Global Net Lease (GNL), Service Properties Trust (SVC), Global Medical REIT (GMRE), Gladstone Commercial (GOOD), EPR Properties (EPR), and Omega Healthcare (OHI).




    Recent Performance


    KBWY just paid out a dividend of 12 cents per share in August, following another 12-cent payout in July. On the price side, the ETF recently rebounded from a dip to $13.50 and has since climbed to $16.21. With momentum on its side, we believe it could rally toward $19.


    Investors should note that REITs can be sensitive to interest rate policy — lower borrowing costs often boost real estate values, while rising rates can weigh on them. With the Fed still leaning toward a looser stance, REITs could be poised for further upside.



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    ETF: Global X Super Dividend U.S. ETF (SYM: DIV)


    For those who want exposure to some of the highest-yielding stocks in the U.S., the Global X Super Dividend U.S. ETF (SYM: DIV) deserves attention.

    What DIV Offers




    • Yield: Currently around 7.32%.




    • Strategy: DIV targets 50 of the highest dividend-yielding U.S. equities, making it one of the purest “income-first” ETFs.




    • Top holdings: Spire (SR), Kinder Morgan (KMI), Omega Healthcare (OHI), Philip Morris (PM), Duke Energy (DUK), AT&T (T), and Dominion Energy (D).




    Why It Matters


    This ETF gives investors a way to tap into utilities, energy, and telecom — sectors that are traditionally strong dividend payers. The trade-off is that these stocks may not always have the explosive growth potential of tech leaders, but they deliver steady income regardless of market swings.


    For income-focused investors, that reliability is golden.


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    Written by Ian Cooper

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