"There's an alternative for investors who don't want to withdraw from their portfolios. Income-generating ETFs come with high yields, some of them above 4.00%. Some investors can live off their dividends instead of selling shares in their portfolios. However, high yields come with lower potential returns, so they're more suitable for retirees. These are some of the top high-yield income-generating ETFs to consider if you want to boost your monthly cash flow."
"The Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) has a 0.060% expense ratio and a 3.74% yield over the past 12 months. The fund focuses on dividend stocks that offer quality payouts and have sustainable dividend distributions. The fund allocates its $73.0 billion in total assets across 102 stocks. Chevron, ConocoPhillips, and Lockheed Martin are the top three holdings in the fund. SCHD has delivered an annualized 11.38% return over the past ten years."
Many retirees use a 4% withdrawal rule, withdrawing 4% of their portfolio annually and hoping portfolio returns exceed that amount. Income-generating ETFs provide an alternative by paying dividends that can supply monthly cash flow without selling shares. High-yield ETFs can produce yields above 4%, but higher yields often correspond with lower potential capital appreciation, making them more suitable for retirees. Examples include SCHD (0.060% expense ratio, 3.74% trailing yield, $73.0 billion AUM, 102 stocks, top holdings Chevron, ConocoPhillips, Lockheed Martin, 11.38% annualized 10-year return) and SPYD (0.07% expense, 4.49% yield, top holdings CVS Health, Viatris, Invesco, 8.92% ten-year return). JEPI offers an 8.35% yield, 0.35% expense ratio, and $41 billion in assets.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]