Passive income in the stock market almost always comes through dividends.
Dividend stocks don’t always get the same attention as growth stocks, whose measure of success is straightforward stock price appreciation, but many investors depend on dividends for cash on top of rising stock prices
Thousands of stocks pay dividends, and many dividend ETFs bundle them together. But if you’re looking for three you can add to your portfolio for consistent and reliable passive income, look no further than the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD), Vanguard High Dividend Yield ETF (NYSEMKT: VYM), and Vanguard Dividend Appreciation ETF (NYSEMKT: VIG).
The blue-chip dividend ETF SCHD is off to a great start in 2026, up more than 15% and comfortably outperforming the S&P 500, Nasdaq Composite, and Dow Jones (as of market close on June 26). It’s known for its screening methodology, which requires a company to have 10 consecutive years of increases, reliable cash flow, and above-average return on equity to be included. These metrics act as a natural vetting process, ensuring it doesn’t just chase high yields or companies with unsustainable dividends.