Dividend ETFs with solid payout histories that quote at a discount to their Net Asset Values (NAV) may offer an upside potential kicker in addition to any intrinsic index tracking upside and dividends received.
All it takes is one or a handful of dividend ETFs to build a sound income portfolio around. Investors should start with a strong foundation to produce steady passive income.
The Schwab U.S. Dividend Equity ETF (SCHD) is one of the gold standards as far as dividend-focused ETFs are concerned. With a nearly 4% yield, the American equity basket delivers on the income front while also allowing for a good amount of growth.