Two Dividend ETFs with High Yields to Consider Purchasing Now

Federal Reserve Rate Cuts: Traders anticipate an 87% chance of the Federal Reserve cutting interest rates this week, marking the third cut of 2025, which could lead to a challenging environment for high-yield investments as U.S. Treasury yields decline.

Importance of Dividend-Growing Stocks: In a low-rate environment, dividend-growing stocks become crucial for income investors, with the Schwab U.S. Dividend Equity ETF and SPDR S&P Dividend ETF being highlighted as strong options for consistent income streams.

Schwab U.S. Dividend Equity ETF: This ETF focuses on companies with a minimum of 10 consecutive years of dividend growth, boasting a current yield of 3.8% and an average annual return of 12.17% since its inception in 2011, with a low expense ratio of 0.06%.

SPDR S&P Dividend ETF: Designed to track stocks with at least 20 years of dividend increases, this ETF has a yield of 2.6% and has returned an average of 8.65% annually since 2005, but has underperformed in 2023 due to its lower exposure to tech stocks.