Forget VYM, These Dividend ETFs Are Better For Retirees
Briefly

Forget VYM, These Dividend ETFs Are Better For Retirees
"If you're approaching retirement or are already retired, you'd be thinking harder than ever for ways to supplement your income. Many retirees dream of building a large enough portfolio that they can live off dividend income. But this needs planning, timely investment, and a diverse set of investment assets. To be able to build a nest egg for retirement, you need to set up multiple income streams for the years. One way to achieve it is through dividends."
"A premier dividend ETF by State Street, the SPDR S&P Dividend ETF was launched in 2005 and has $20 million in assets under management. The fund tracks the performance of the S&P High Yield Dividend Aristocrat index. It holds companies that have increased dividends for at least two decades, and the stocks are weighted by their dividend yield. Stocks in the ETF have both dividend income and capital growth potential."
Retirees seeking supplemental income can pursue dividend-focused investments to build a retirement nest egg. Exchange-traded funds (ETFs) offer diversified, lower-risk exposure to dividend-paying equities with automated reinvestment and periodic payouts. Vanguard High Dividend Yield ETF (VYM) yields 2.85% and distributes quarterly dividends. SPDR S&P Dividend ETF tracks the S&P High Yield Dividend Aristocrat Index, launched in 2005 with $20 million AUM, contains 149 stocks, and charges a 0.35% expense ratio. The SPDR fund yields 2.58%, pays quarterly, returned 10.80% over three years and 11.68% over five years. Top sector allocations include industrials, consumer staples, and utilities.
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