Despite the S&P 500 still trading near all-time highs, there are some excellent long-term opportunities to be found in the stock market. One area in particular where they exist is in the world of dividend stocks. As a group, dividend stocks trade at a significant discount to the overall market, and, thanks to the elevated interest rate environment, yields remain relatively high.
With that in mind, here are two ETFs you can add to your portfolio right now that will allow you to get an excellent combination of steady dividend income, double-digit total return potential, and low volatility. I own both in my portfolio and plan to keep increasing my positions over time.
International stocks are cheap right now
As mentioned, dividend stocks as a group are cheap right now compared to their non-dividend counterparts. But international dividend stocks are even cheaper.
NASDAQ: VYMI
Key Data Points
One ETF that could be a smart choice right now is the Vanguard International High Dividend Yield ETF (VYMI +0.60%). It tracks an index of about 1,580 dividend stocks across developed and emerging markets, pays a 3.9% dividend yield, and has a low 0.07% expense ratio, which means your investment fees will be just $7 for every $10,000 in assets. (Note: An expense ratio isn't a fee you have to pay. It will simply be reflected in the fund's performance.)
Don't think that just because this is an international dividend ETF that it's full of stocks you've never heard of. Top holdings include Nestle, Toyota, Shell, and several other familiar names.
Consider the valuation case. The average stock owned by the Vanguard International High Dividend Yield ETF trades for 14 times earnings and for 1.7 times book value. For comparison, high-dividend stocks held in the U.S. version of this ETF trade at nearly 22 times earnings and 3.1 times book value. And even that is much less than the S&P 500's average P/E ratio of 28 and price-to-book multiple of 5.5.
Real estate while rates are high
Real estate is one of the most rate-sensitive parts of the market. Now that inflation has surged higher in 2026 and Federal Reserve rate cuts seem to be on hold, at least for now, many real estate investment trusts (REITs) trade for attractive prices.
Image source: Getty Images.
The Vanguard Real Estate ETF (VNQ +1.46%) could be worth a closer look. The ETF, which has a dividend yield of roughly 4%, owns a portfolio of U.S.-based REITs. Top holdings include data center giants Equinix and Digital Realty Trust, as well as American Tower, Prologis, and Welltower.
This can be a great way to add steady, growing income to your portfolio, especially now. The fund's dividend has grown at an annualized rate of about 6.5% over the past three years, and REITs can be among the market's best performers when interest rates finally start to fall once again.
