Morningstar just released its list of top dividend funds, so I thought it was a great time to share a few highlights with y'all...

The article covers both ETFs and mutual funds, but I’m focusing on ETFs since anyone with a brokerage account can buy them. Mutual funds can be trickier, depending on where your account is located.

I recommend checking out Morningstar's complete list HERE.

Both mutual funds and ETFs (Exchange Traded Funds) are great "easy button" choices for most regular investors, because instead of trying to pick individual stocks, you can buy one fund that owns hundreds of companies for you.

ETFs also have some extra perks—lower fees, the ability to trade during market hours like stocks, and better tax efficiency.

I love reminding folks that most pros struggle to beat the market—about 92% of fund managers underperform VOO (Vanguard’s S&P 500 ETF) over 20 years, according to long-term studies.

These ETFs all focus on US dividend stocks and earned Morningstar's highest ratings of Silver or Gold.

What makes these ratings special is that they're "100% analyst driven" - meaning real financial experts (not computer programs) studied each fund and gave them high marks based on their research.

So here we go... The Top 5 ETFs:

1. Capital Group Dividend Value ETF (CGDV)

Expense ratio: 0.33%

Number of holdings: 57

This fund focuses on undervalued companies that pay steady dividends. It's managed by one of the biggest investment firms in the country. With only 57 holdings, it's more focused than most dividend funds.

2. Fidelity High Dividend ETF (FDVV)

Expense ratio: 0.16%

Number of holdings: 120

Fidelity's dividend fund targets companies with higher-than-average dividend payments. It comes with Fidelity's reputation for low costs and solid research. The 0.16% fee is very reasonable.

3. Franklin U.S. Low Volatility High Dividend ETF (LVHD)

Expense ratio: 0.27%

Number of holdings: 121

This fund looks for companies that pay good dividends but don't swing up and down as much as other stocks. It's designed to be less bumpy during market rough patches—perfect for nervous investors.

4. Schwab U.S. Dividend Equity ETF (SCHD)

Expense ratio: 0.06%

Number of holdings: 103

One of the most popular dividend ETFs around, SCHD focuses on quality companies with strong dividend track records. Schwab keeps the fees extremely low at just 0.06% - that's only $6 per year on a $10,000 investment.

5. SPDR S&P Dividend ETF (SDY)

Expense ratio: 0.35%

Number of holdings: 152

This fund tracks companies in the S&P 500 that have increased their dividends for at least 20 straight years. It's all about companies with proven, long-term dividend growth.

As many of you know, the only one I own from this list is SCHD—my favorite—because it has the lowest fees and focuses on quality companies.

But remember, when you buy an ETF, you're also buying its strategy—called the methodology.

I'm on vacation in Florida, so that's all for this one, folks!

Hit reply and let me know which of these, if any, you're invested in. I'll respond to every reply!

Disclaimer: This is not investment advice, just one person's opinion that may be incorrect. Do your own research before making any investment decisions.

😁THANK YOU to all who responded to the last newsletter!!

Check out the portfolio on Blossom, the podcast, or see what’s cooking on YouTube.

And now, here is this week's portfolio activity...

Dividends Received This Week ~$78.00

Lockheed Martin (LMT) | $33.00
Main Street Capital (MAIN) | $45.00

Dividends Received Year to Date (Schwab Only)~

$2,676.81

Stocks Sold (AVERAGE)

50 Nexstar Media (NXST) | $175.25
1 VICI Properties (VICI) 7/18/25 $32.50 Covered Call | $70.00, but received $69.34 after fees

Stocks Bought (AVERAGE)

1 Realty Income (O) | $56.95
4 Schwab International Dividend ETF (SCHY) | $27.25
5 Zoetis (ZTS) | $155.80

Notable Ex-Dividends This Week + SSD Score

6/30 Agree Realty (ADC), 4.25% | 70S
6/30 Illinois Tool Works (ITW), 2.42% | 81VS
6/30 Rexford Industrial Realty (REXR), 4.75% | 81VS
7/1 Air Products and Chemicals (APD), 2.54% | 95VS
7/1 Realty Income (O), 5.66% | 80S
7/2 Comcast (CMCSA), 3.74% | 80S
7/3 General Dynamics (GD), 2.06% | 97VS

🎙️Podcast of the week🎙️

Nexstar Media: Broadcasting'...

Jun 25 · Business Breakdowns

60:46

My former #1 dividend stock was the highlight of the latest Business Breakdowns podcast and it's a fantastic recap of pretty much why I decided to sell.

🎦If you missed it, check out why I sold my #1 dividend stock and what I'm buying right now.

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🎶Random music from the Dapper Dividends Jukebox🎶

Face to Face - Bent But Not Broken