3 Best Vanguard Dividend ETFs for Steady Passive Income

Dividend investing remains one of the simplest ways to build steady passive income — especially in a volatile market. Instead of chasing hot stocks, many retail investors prefer reliable cash flow from established companies that pay consistent dividends. That’s where Vanguard stands out with several dividend ETFs designed to deliver income without excessive risk. Using TipRanks’ Best Vanguard ETFs tool, we identified three income-focused options: Vanguard Real Estate ETF VNQ +0.69% ▲ , Vanguard International High Dividend Yield ETF VYMI -0.25% ▼ , and Vanguard Utilities ETF VPU -0.38% ▼ .

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Let’s take a look at these ETFs in detail.

**Vanguard Real Estate ETF VNQ +0.69% ▲ **

Vanguard Real Estate ETF (VNQ) gives investors broad exposure to U.S. real estate investment trusts (REITs). It focuses on income-producing properties like commercial buildings, apartments, data centers, and retail spaces. Because REITs are required to pay out most of their income as dividends, VNQ is often used by investors seeking higher yields and steady cash flow.

VNQ has an expense ratio of 0.13%. The fund pays a quarterly dividend of $0.80 per share, reflecting a 3.63% yield. Currently, VNQ holds 150 stocks with total assets worth $36.72 billion. Its top holdings are Welltower WELL +0.10% ▲ , Prologis PLD +1.88% ▲ , and American Tower Corporation AMT +1.39% ▲ .

**Vanguard International High Dividend Yield ETF VYMI -0.25% ▼ **

VYMI gives investors exposure to high-dividend stocks outside the U.S., adding both global income and geographic diversification. It tracks the FTSE All-World ex U.S. High Dividend Yield Index. International markets outperformed the S&P 500 in 2025, and that momentum has carried into 2026. For income-focused investors, VYMI offers a way to tap into higher yields while gaining exposure to overseas markets.

VYMI has an expense ratio of 0.07%. The fund pays a quarterly dividend of $0.939 per share, reflecting a 3.27% yield. Currently, VYMI holds 1,509 stocks with total assets worth $18.94 billion. Its top holdings are Roche Holding RHHBY -0.76% ▼ ,  HSBC Holdings HSBC +0.32% ▲ , and Novartis NVS -0.80% ▼ .

**Vanguard Utilities ETF VPU -0.38% ▼ **

VPU invests in U.S. utility companies, giving investors a defensive way to earn steady dividend income. Utilities typically generate reliable cash flow and experience lower volatility, making VPU a go-to option during uncertain market periods. While the sector may not match the high growth of tech, it provides reliable income with stability.

VPU pays a quarterly dividend of $1.363 per share, reflecting a 2.48% yield. The ETF holds 69 stocks with total assets of $8.67 billion, with its top 10 holdings accounting for 51.74% of the portfolio. VPU’s top three holdings are NextEra Energy NEE -3.28% ▼ , Southern Co SO +0.45% ▲ , and Duke Energy DUK +0.23% ▲ .

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