Top 10 Dividend and Distribution-Paying Bond Funds
The best bond funds for 2025 providing strong dividends and distributions
Quick Definition: Bond funds are investment vehicles, such as ETFs or mutual funds, that invest in bonds and distribute interest income as dividends or distributions to shareholders.
The top 10 dividend and distribution-paying bond funds for 2025 are selected for their high yields, low expense ratios, and consistent performance. These funds provide income-focused investors with stable cash flows and diversification across bond sectors like corporate, government, or high-yield bonds, though they carry risks such as interest rate fluctuations and credit risk.
| # | Ticker | Name | Yield (%) |
|---|---|---|---|
| 1 | FFRHX | Fidelity Floating Rate High Income Fund | 7.34% |
| 2 | SPHY | SPDR Portfolio High Yield Bond ETF | 7.26% |
| 3 | TMAYX | Thrivent High Yield Fund | 6.70% |
| 4 | JNK | SPDR Bloomberg High Yield Bond ETF | 6.62% |
| 5 | VWEHX | Vanguard High-Yield Corporate Fund | 6.26% |
| 6 | JPHY | JPMorgan High Yield Research Enhanced ETF | 6.21% |
| 7 | HYG | iShares iBoxx High Yield Corporate Bond ETF | 5.66% |
| 8 | FAGIX | Fidelity Capital & Income Fund | 4.42% |
| 9 | PRIHX | T. Rowe Price Intermediate Tax-Free High Yield Fund | 3.99% |
| 10 | NMHYX | Northern Multi-Manager High Yield Opportunity Fund | 2.26% |
Yields are subject to change and not guaranteed.