Can ETFs pay dividends?

ETFs can and often do pay dividends (or interest, for bond ETFs). If the underlying holdings generate income, the ETF generally passes it through to shareholders after expenses, typically on a monthly or quarterly schedule. (investor.gov)

Dividend payments vary widely by ETF. A broad U.S. stock ETF might have a modest yield, while a dividend-focused equity ETF or a bond ETF may distribute more. Some ETFs are "accumulating" (common outside the U.S.) where income is reinvested inside the fund instead of paid out.

If you're comparing ETFs for income, look beyond the headline yield. Check what's driving the distributions (dividends vs return of capital), how consistent it is, and how taxes work in your account type.