Global stock markets remain volatile amid macroeconomic uncertainty and geopolitical risks. In this scenario, investors seeking consistent income can consider adding bond exchange-traded funds (ETFs) to their portfolios. Bond ETFs offer the benefit of diversification at a low cost. Here, we will look at three bond ETFs with more than 4% dividend yields: iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD), Schwab 5-10 Year Corporate Bond ETF (SCHI), and Vanguard Total International Bond ETF (BNDX).
Claim 30% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
TipRanks’ ETF Comparison Tool gives a snapshot of these ETFs across key metrics.
iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD)
The LQD ETF tracks the Markit iBoxx USD Liquid Investment Grade Index and provides exposure to U.S. dollar-denominated, investment-grade corporate bonds. It is suitable for investors seeking stability and consistent income. The LQD ETF comprises a balanced blend of short, medium, and long-term bonds.
Interestingly, the LQD ETF has paid about $4.954 per share in dividends over the past year. It offers a dividend yield of 4.52%.
Schwab 5-10 Year Corporate Bond ETF (SCHI)
The SCHI ETF tracks the Bloomberg US Aggregate Credit Corporate Index (5-10 Year) and offers exposure to corporate fixed-income securities with a remaining maturity of 5 to 10 years. It is suitable for investors seeking stable income streams while maintaining a moderate level of risk compared to shorter-term or lower-grade securities.
The SCHI ETF has paid $1.143 per share in dividends over the past year. It offers a dividend yield of 5.02%.
Vanguard Total International Bond ETF (BNDX)
The BNDX ETF tracks the Bloomberg Global Aggregate ex-USD Float Adjusted RIC Capped Index (Hedged) and offers exposure to the major bond markets outside of the U.S. It is suitable for investors seeking exposure to high-quality debt instruments across developed and emerging markets.
With dividends of more than $2.142 per share paid over the past year, the BNDX ETF offers a dividend yield of 4.44%.
