These 3 dividend ETFs are a retiree s best friend foxbusiness.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from foxbusiness.com Daily Mail and Mail on Sunday newspapers.
Author Bio
Robin Hartill is a Florida-based personal finance writer and editor, and a CERTIFIED FINANCIAL PLANNER.™ She is a graduate of the University of Florida.
When you re retired, having a steady stream of passive income is essential. Those Social Security checks don t stretch very far on their own. That s why dividend-paying stocks are popular with retired investors. But diversification is essential. Dividend payments aren t guaranteed. A company s board can always suspend dividends when times get tough.
A good solution is to invest in dividend exchange-traded funds (ETFs). Because you re spreading out your investment across many different companies, your income isn t at risk if one company decides not to pay a dividend. Here are three dividend ETFs that could make your retirement a lot more comfortable.
Author Bio
Robin Hartill is a Florida-based personal finance writer and editor, and a CERTIFIED FINANCIAL PLANNER.™ She is a graduate of the University of Florida.
Relying on Social Security alone won t get you a comfortable retirement. A typical benefit will replace just 40% of the average salary. Investing in dividend stocks is a smart way to supplement your income, but relying on just a few stocks is risky.
The solution: Invest in exchange-traded funds (ETFs) that offer high dividend yields so you can take advantage of diversification on top of steady income. These three Vanguard ETFs are the perfect places to start.
3 Vanguard Funds Perfect for Supplementing Social Security fool.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from fool.com Daily Mail and Mail on Sunday newspapers.
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Where did the income go? A recession led high-quality yields lower in 2020, and fiscal and monetary support spurred a lower-quality rebound that kept yields pretty low across the board. But yield isn t everything. As Morningstar s director of personal finance Christine Benz and others have pointed out, you can also invest for total return and sell some of your appreciated mutual funds and stocks to pay some expenses in retirement. Certainly, it makes sense to be flexible rather than chase yield.
But to see how things shake out today, I looked at the 13 highest-yielding funds in the Morningstar 500 as of Jan. 25, 2021, though the table shows yields as of March 8. This is one of those Don t try this at home things. I select the M500 list mostly on Morningstar Analyst Ratings but also include prominent and up-and-coming funds that may be rated Neutral or not rated. So, it s a fairly safe place for this exercise. If you did this for