<div id="readability-page-1"><div> <h2>Key Points</h2><ul><li>Long-term Treasuries have lost money over the past 10 years. Investment-grade corporate bonds haven't done much better.</li><li>Inflation risk and soaring debt levels mean that fixed income might be in a tough spot for the foreseeable future.</li><li>Strong dividend ETFs can replace the income from bonds and provide equity upside.</li><li>10 stocks we like better than Schwab U.S. Dividend Equity ETF ›</li></ul>Income investors have been in a tough spot for several years. Those relying on bonds had been saddled with minimal yields for years coming out of the financial crisis. During the 2022 inflation scare, soaring rates resulted in significant capital losses on many longer-term notes.Over the past 10 years, the iShares 20+ Year Treasury Bond ETF has lost 11%. It still sits roughly 40% off of its all-time high. The iShares iBoxx $ Investment Grade Corporate Bond ETF has done modestly better, returning about 32% over the same time, but it's clearly been lean times for fixed income.Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an &#34;Indispensable Monopoly&#34; providing the critical technology Nvidia and Intel both need. Continue »What's more concerning is that the environment might not improve anytime soon. Stubborn inflation could prevent yields from moving too much lower here. Soaring federal debt levels could also force rates higher to encourage investors to buy new Treasury issues. Unless there is a major risk-off shift that brings Treasuries back as a legitimate safe haven asset, bonds might be stuck for a while.It might be time to look closer at dividend equities for yield. A number of ETFs invest in large, durable, financially healthy companies that also kick off big dividends. You can earn income comparable to what you'll find with bonds right now plus equity upside. With the market finally showing some love to sectors and styles beyond just mega-cap tech, this could be an attractive play in 2026.Here are three rock-solid dividend ETFs that could fit the bill in your portfolio.<img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2MDg5Ny9nZXR0eS1kaXZpZGVuZC1pbmNvbWUuanBnJnc9NzAw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="466" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2MDg5Ny9nZXR0eS1kaXZpZGVuZC1pbmNvbWUuanBnJnc9NzAw"/>Image source: Getty Images. <h2>1. Schwab U.S. Dividend Equity ETF</h2>The Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) is one of the most popular dividend ETFs, and for good reason. Its three-pronged strategy considers dividend payment history, balance sheet health, and high yield. This kind of strategy cross-check helps avoid any bad apples from slipping through. And it helps construct a portfolio built on sustainable high yields.This ETF is back to being a stellar performer in 2026 after three years of struggles. Its strategy isn't necessarily built to lead when a handful of mega-cap tech stocks are outperforming. But its long-term history demonstrates that the Schwab U.S. Dividend Equity ETF does well much more often than not. And its 3.5% dividend yield will be especially attractive to income seekers.<h2>2. Vanguard High Dividend Yield ETF</h2>The Vanguard High Dividend Yield ETF (NYSEMKT: VYM) is another popular dividend ETF, but it's more of a pure yield play. It starts with a broad dividend-paying stock universe and simply selects the top half of forecasted dividend yields from the group. It's an imprecise selection methodology, but it also creates a more simple approach to high-yield investing.This fund's market cap-weighting scheme means that the biggest companies get the largest allocations in the portfolio regardless of yield. That's a little less than optimal as it currently pulls the current yield down to a historically low 2.3%. But that's still double the current yield of the S&amp;P 500 index.<h2>3. iShares Core Dividend Growth ETF</h2>The iShares Core Dividend Growth ETF (NYSEMKT: DGRO) doesn't have quite the yield as the ETFs mentioned above, but its focus on dividend durability and growth helps it stand out. One of its more intriguing features is that the final portfolio is dividend dollar-weighted. It gives greater weightings to stocks that pay out more in dividends.This ETF's strategy targets stocks that have at least a five-year dividend growth streak and a payout ratio of 75% or less. That helps produce a portfolio with a stronger quality tilt and a sustainable dividend profile. It doesn't always equate to a high yield, but its current 2% yield is enough to help fill the income gap in a portfolio.<h2>Should you buy stock in Schwab U.S. Dividend Equity ETF right now?</h2> Before you buy stock in Schwab U.S. Dividend Equity ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Schwab U.S. Dividend Equity ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $503,592!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,076,767!* Now, it’s worth noting Stock Advisor’s total average return is 913% — a market-crushing outperformance compared to 185% for the S&amp;P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of March 24, 2026. David Dierking has positions in iShares Trust - iShares 20+ Year Treasury Bond ETF. The Motley Fool has positions in and recommends Vanguard High Dividend Yield ETF. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. </div></div>

SCHD

USMV

The article discusses the challenges faced by income investors relying on bonds, as long-term Treasuries and investment-grade corporate bonds have underperformed over the past decade. With inflation risks and high debt levels, fixed income may remain unfavorable. It suggests that dividend ETFs could provide a viable alternative for income, highlighting three options: Schwab U.S. Dividend Equity ETF, Vanguard High Dividend Yield ETF, and iShares Core Dividend Growth ETF, which offer attractive yields and potential equity upside.

3 Dividend ETFs That Could Replace Bond Income in 2026