"It doesn't hurt to have a source of passive income in your retirement supported by your investment portfolio. Whether you are inching closer to the golden years or are already retired, an investment portfolio that generates steady income can help cover your expenses. During retirement, it is best to keep things simple and identify investments that are cost-effective. Exchange-traded funds (ETFs) can be an ideal choice if you do not want a hands-on approach to investing. ETFs invest in a bundle of stocks and track an index. You'll get to own a diversified portfolio at low cost and enjoy steady income over the years."
"The Schwab U.S. Dividend Equity ETF ( NYSEARCA:SCHD) is my favorite and I've covered it several times in the past. It has an attractive yield of 3.67% and is a strong performer. A higher yield means there's a trade-off between modest capital appreciation and dividends. But if you're someone who seeks steady income, SCHD won't disappoint. The fund tracks the Dow Jones U.S. Dividend 100 index and includes only those companies that have 10 consecutive annual dividend increases. These stocks are given a composite score that looks at the cash flow to total debt, dividend yield, return on equity, and five-year dividend growth rate."
Passive income in retirement can be supported by investment portfolios that generate steady income and cover expenses. Keeping investments simple and cost-effective is optimal during retirement. Exchange-traded funds (ETFs) offer diversified exposure to bundles of stocks while tracking indexes and providing low costs and steady income. The Schwab U.S. Dividend Equity ETF (SCHD) yields 3.67% and tracks the Dow Jones U.S. Dividend 100 index, including companies with ten consecutive annual dividend increases. SCHD selects companies using a composite score—cash flow to total debt, dividend yield, return on equity, and five-year dividend growth—and charges a 0.06% expense ratio.
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