The best dividend ETFs aren’t necessarily the ones with the highest yields. This is because extremely high yields can indicate underlying financial weakness within a business. Investors should consider other factors, such as dividend history, performance history and expense ratio. In this article, we explain how dividend-paying ETFs work and how to choose the best ones for you. We also provide a list of top dividend ETFs. What Is a Dividend ETF? A dividend ETF is a type of exchange-traded fund that focuses on investing in a diversified portfolio of stocks that pay dividends. The goal is to generate a stream of income for investors through the dividends paid by the companies held within the ETF. Dividend ETFs may hold stocks of companies with a history of consistently pa