2 High-Yield Dividend ETFs to Buy to Generate Passive Income
With yields ranging between 3.6% and 7.3%, these dividend ETFs are great bets for generating passive income.
To generate years of passive income, you could either build a portfolio of individual dividend stocks or simply invest in a dividend exchange-traded fund (ETF). An ETF allows you to buy several stocks at a time without the hassle of managing a portfolio. Buying some units of a high-yield dividend ETF, for instance, can fetch you regular dividends from a basket of stocks and earn you a high yield, without your having to research and invest in individual stocks.
If the concept appeals to you as an income investor, check out these three fantastic high-yield dividend ETFs to buy now. Each of these ETFs yields substantially higher than the S&P 500's (SNPINDEX: ^GSPC) yield of 1.3%.
The Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) is undeniably one of the best high-yield dividend ETFs you could buy. That's because it tracks the Dow Jones U.S. Dividend 100 index, which doesn't include just high-yielding stocks but focuses on 100 consistent dividend-paying stocks with the financial fortitude to back their steady and often growing dividends.
