Market volatility can test even the most patient investors, especially when sharp swings in stock prices dominate headlines. But for investors focused on steady income, volatility doesn’t have to derail a long-term strategy. In fact, dividend ETFs can help provide stability, consistent cash flow, and peace of mind during uncertain markets.
Table of Contents
Dividend ETFs give investors exposure to diversified baskets of companies with strong histories of paying and growing shareholder payouts. Many of these businesses are mature, financially stable firms capable of generating reliable cash flow even during economic slowdowns. That combination of diversification, dependable income, and lower stress makes dividend ETFs especially attractive for retirees and conservative investors.
For investors looking to build volatility-resistant portfolios, these three dividend ETFs stand out for their history of reliable payouts and strong underlying holdings.
Move your money out of overpriced AI stocks before the tech trade breaks down in 2026. Get into these smaller, lesser-known names that are showing the potential to dethrone the Mag 7 in 2026. Make sure three alternatives to Nvidia, Tesla, and Amazon are on your radar before markets open tomorrow.
The SPDR S&P Dividend ETF (NYSEARCA: SDY) invests in companies that have increased dividends for at least 20 consecutive years. With an expense ratio of 0.35%, the ETF yields about 2.46% and gives investors exposure to some of the market’s most dependable dividend payers.
These companies have maintained and increased payouts through major market disruptions, including the dot-com crash, the 2008 financial crisis, and the COVID-19 pandemic. That consistency can help investors stay confident during periods of uncertainty.
Invesco SPHD Combines High Dividend Yield With Low Volatility
With an expense ratio of 0.30%, the Invesco S&P 500 High Dividend Low Volatility ETF (NYSEARCA: SPHD) focuses on two key investor priorities: strong dividend income and reduced volatility. The ETF currently offers a yield of approximately 4.66%, making it especially attractive for retirees and income-focused investors.
One of SPHD’s biggest advantages is its monthly dividend payout schedule. Monthly payments can make budgeting easier for investors relying on portfolio income to cover living expenses.
The ETF holds 50 stocks selected for both high yield and historically lower volatility. Top holdings include ConAgra Brands, Verizon, Altria Group, Pfizer, VICI Properties, and ONEOK Inc.
SPHD has also demonstrated a consistent payout history. It recently paid a dividend of just over 20 cents per share on April 24, following similar payouts in March and February. That consistency may appeal to investors seeking predictable income streams during uncertain economic conditions.
Vanguard Dividend Appreciation ETF Focuses on Long-Term Quality
The Vanguard Dividend Appreciation ETF (NYSEARCA: VIG) takes a different approach by emphasizing long-term dividend growth instead of simply chasing higher yields. With an extremely low expense ratio of 0.05% and a yield of approximately 1.56%, VIG is designed for investors seeking quality and stability over time.
The ETF tracks the S&P U.S. Dividend Growers Index and invests in large-cap companies with strong histories of increasing dividends. Many of these businesses also benefit from durable competitive advantages and strong balance sheets.
Among VIG’s 338 holdings are Apple, Microsoft, Broadcom, JPMorgan, Eli Lilly, Visa, Exxon Mobil, UnitedHealth Group, Mastercard, and Costco Wholesale. These are companies with strong earnings power that can continue rewarding shareholders even during slower economic periods.
VIG pays a quarterly dividend and most recently distributed just over 83 cents per share on March 31 after paying more than 88 cents per share in December.
The world's richest man just launched a new $480 trillion disruption, which could make you massive gains this summer. It has nothing to do with space, robots or AI. It's much, much bigger.
Dividend ETFs Can Help Investors Stay Calm During Volatility
Market volatility is never comfortable, but it doesn’t have to derail a long-term investment strategy. For income-focused investors, dividend ETFs can provide stability by delivering regular payouts while still offering exposure to quality companies with proven track records.
Funds like the SPDR S&P Dividend ETF, Invesco S&P 500 High Dividend Low Volatility ETF, and Vanguard Dividend Appreciation ETF each offer a different approach to generating income, whether through higher yields, lower volatility, or long-term dividend growth. While no investment is completely immune to market swings, owning diversified ETFs filled with financially strong companies can make it easier to stay invested during uncertain times.
Anthropic (private) just made the biggest cloud commitment in AI history.
The company plans to go public later this year – making it the 2nd largest IPO of 2026. Meanwhile, SpaceX is less than 60 days away from its June listing on the Nasdaq.
Anthropic just signed a deal to spend $200 billion with Google Cloud over the next five years. That single contract now represents more than 40% of Google's entire cloud revenue backlog.
That means one AI startup is responsible for nearly half of Google's contracted cloud pipeline.
Anthropic CEO Dario Amodei said this week that his company grew 80-fold in the first quarter. The company had planned for 10x growth. The actual number was 8x higher than that.
"That is the reason we have had difficulties with compute," Amodei said at Anthropic's developer conference Wednesday.
Anthropic is now in talks to raise money at a $900 billion valuation. Claude Code — its AI coding tool — has taken the developer world by storm. It's the primary engine behind this growth.
Google isn't just a passive backer. It runs the infrastructure. Google Cloud grew 63% in Q1 — and this deal explains a significant chunk of that acceleration.
Meanwhile, Alphabet stock is up 25% year-to-date and over 157% in the last year. It's trading within a few points of an all-time high.
The story here is bigger than Anthropic. It’s about the companies sit at the center of the AI infrastructure buildout.
Google is clearly in a leadership position. And this deal confirms the company’s dominance.
The AI spending boom is becoming more concentrated — with a handful of cloud providers capturing the bulk of the revenue. Amazon, Microsoft, Google, and Oracle now have roughly $2 trillion in combined cloud backlog. About half of that is tied to Anthropic and OpenAI alone.
That's an extraordinary amount of backlog from two cash-burning startups. It's also a massive bet by the cloud giants that AI revenue will scale to meet those commitments.
So far, the numbers suggest it will.
SpaceX is also becoming a major AI player – thanks to its acquisition of xAI. The upcoming IPO will provide +$75 billion in cash to fund Elon Musk’s ambitious AI plans.
That’s why I’m securing my shares – just a few weeks before the Initial Public Offering. And you can too.
In 2023, it already could have grown $5,000 into $1 million.
And in 2025, it could have grown $5,000 into $2 million.
To be clear: I’m not talking about hypothetical, invented scenarios. I’m talking about what my actual trading strategy — and the historical, concrete gains in my real portfolio — could have allowed you to do.
Now, this year, I’ve decided to get official about things. That’s why I’m launching my first-ever challenge, designed to take advantage of the unique market conditions, using my powerful and proven strategy.
The historic market disruption that could allow you to turn $5,000 into $1 million in 12 trades or less in 2026. This same type of disruption happened in 2023 — when my strategy would have turned $5,000 into more than $1 million in 9 trades. Then it happened again in 2025 — when my strategy could have turned $5,000 into $2 million in 12 trades. Now it’s back in 2026, stronger than ever before... and I don’t want to keep this opportunity to myself
Why I’ve waited 42 years for the ideal moment to launch this challenge — and why I may never do anything like this ever again. The market conditions required to potentially turn $5,000 into $1 million in 12 trades are rare… and only last for a specific amount of time. I’ve chosen right now to launch this challenge because I truly believe market conditions are near-perfect to rapidly grow a small starting stake into a seven-figure total.
Why I’m so confident in this strategy… that I taught it to my own sons. I am so confident this challenge could work that I’m willing to put my professional reputation on the line to attempt it. But more than that, I would never recommend anything to you I wouldn’t share with my own family members. That’s why I’ve taught this same strategy to my adult sons, with great success. On Thursday, May 14th at 10 am ET I’m excited to bring you along, too.
To get started… all you need to do is show up on May 14th, ready to discover all the details and see whether this exciting Challenge could be right for you.
Miss This Move and You Could Regret It for Years To Come
Zacks Member,
Last night was the deadline to claim our highest level of membership at a small fraction of its value—the lowestcost available.
You were on a select list of Zacks members who were given this opportunity for lifetime access and I'd hate to see you miss out.
So I'm extending the deadline until midnighttonight.
Just want to be sure you didn't miss any of the details, or didn't get a chance to respond.
Maybe you're concerned about the cost of Zacks' Greatest Investment Value? Don't be. Our private portfolios closed 95 double and triple-digit winners already this year. Past gains reached as high as +141%, +499%, +627%, and even +2,027%.¹ While not all picks will be winners, just one of them could more than cover the cost of your membership.
Follow the pros as they apply one of the world’s most successful stock strategies. The unbiased, mathematical Zacks Rank system more than doubles the S&P 500. Since 1988, even through three recessions and multiple corrections, it has averaged an astonishing +23.9% per year.
Your access to Zacks Premium will be permanent. Take full advantage of its powerful research, tools, and analysis, including the Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener and more.
Don’t miss our private Special Reports. Stay on top of trends like Renewable Energy, Lithium, Artificial Intelligence, Electric Vehicles, and more with stock ideas that have gain potential similar to Apple, Amazon, and Tesla in their early days.
No reason to hesitate. This arrangement is also backed by a 90-day money-back Satisfaction Guarantee and a 3-year money-back Performance Guarantee, so you're not risking a cent.
We’re at the final day for this special arrangement. I’m excited for the chance to help you make money and build wealth today and for many years to come.
Your chance to take advantage ends Thursday, May 07 – midnight tonight. Sorry, no further extensions.
¹The results listed above are not (or may not be) representative of the performance of all selections made by Zacks Investment Research's newsletter editors and may represent the partial close of a position. Access grants you a comprehensive list of all open and closed trades.
This free resource is being sent by Zacks.com. We look for investment resources and inform you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms of Service". https://www.zacks.com/terms_of_service
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research is not a licensed securities dealer, broker or U.S. investment adviser or investment bank.
The Zacks #1 Rank Performance covers the period beginning on January 1, 1988 through March 2, 2026. The performance is the equal weighted performance of a hypothetical portfolio consisting of stocks with a Zacks Rank of #1 that was rebalanced monthly from January 1988 through December 2013 and weekly from 12/31/13 through Monday's open on March 2, 2026. For each stock with a Zacks Rank #1 at the beginning of the month, the total return during the month was calculated as the % change in the price of the stock from the closing price of the prior month to the closing price of the current month plus any dividends received during the month. The monthly individual stock returns were then averaged to determine the portfolio return for the month. For each stock with a Zacks Rank #1 at the beginning of the week, the total return during the week was calculated as the % change in the price of the stock from the opening price for the week to the opening price of the next week plus any dividends received during the week. The weekly individual stock returns were then averaged to determine the portfolio return for the week. If no month-end price or week end open price was available for a stock, it was not included in the portfolio return for the month or the week. The monthly and weekly returns were compounded to arrive at the annual returns. The annualized return is the annual return that, had it been achieved in each year or portion of a year, would have compounded to create the total return over the full time period. These returns are based on the list of Zacks Rank #1 Stocks that was available to clients of Zacks as of the beginning of the month, when returns were calculated monthly, or as of the beginning of the week when returns were calculated weekly. These returns are higher than the returns an investor could achieve investing real money in a portfolio of Zacks Rank #1 stocks because the returns of the hypothetical Zacks Rank #1 portfolio exclude a number of costs, including commissions incurred for trading, the average bid ask spread, the price impact of the trading and, prior to 2013, in those months when the end of the month fell on Friday, Saturday or Sunday, the overnight return from the month end close to the open on the next trading day. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance_disclosure for information about the performance numbers displayed above.
Zacks Emails
If you would prefer to not receive future profit-producing emails from Zacks.com the primary purpose of which is the commercial advertisement or promotion of a commercial product or service, then please click here and confirm your request. If you have trouble with the unsubscribe link, please email support@zacks.com.
Zacks Investment Research
101 N Wacker Drive, Floor 15
Chicago, IL 60606
America’s vast territories and diverse landscapes make it a hotspot for some of the world’s most remarkable weather and natural phenomena. From raging tornadoes to volcanic eruptions, the U.S. is no stranger to extreme natural events. While some of these events have left deep scars on the nation’s collective memory, many have also driven significant advancements in prevention and disaster response protocols, helping to mitigate the impact of future occurrences. Here’s a look at 10 of the most powerful natural events in American history.
