"If you're looking to build a portfolio that generates steady income for you throughout 2026, you need to look beyond dividend stocks. While they can generate passive income, they also carry risks. On the other hand, exchange-traded funds (ETFs) offer a low-risk way of generating passive income. While the goal isn't making big money, it is about having a predictable source of income that doesn't disappoint during market ups and downs."
"One of the best and most obvious high-yield dividend ETFs is the Schwab U.S. Dividend Equity ETF. When it comes to high-yield ETFs, Schwab doesn't disappoint. It has a yield of 3.79%, which attracts investors of all kinds. The fund has an expense ratio of 0.06% and invests in 100 stocks. The ETF excludes real estate investment trusts and builds a composite score for all the stocks being considered."
Exchange-traded funds focused on dividends can deliver steady, predictable income with lower risk and volatility than individual dividend stocks. Examples include Schwab U.S. Dividend Equity ETF (SCHD), JPMorgan Equity Premium Income ETF (JEPI), and Global X SuperDividend ETF (SDIV). SCHD yields about 3.79%, holds 100 quality U.S. stocks, excludes REITs, and screens for profitability, consistent dividends, and strong balance sheets. It allocates heavily to energy, consumer staples, and healthcare and charges a 0.06% expense ratio. Income-focused ETFs offer broad sector exposure, high yields, low cost, and a mix of stability and income for long-term investors.
Read at 24/7 Wall St.
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