1 No-Brainer Dividend ETF to Generate Thousands of Dollars in Passive Income
The Vanguard High Dividend Yield ETF also has the sector mix to outperform the S&P 500 right now.
Overview
Generating thousands of dollars a year in passive income from your portfolio sounds great, but there's a right way and a wrong way to do it.
Investing in stocks based solely on their yields can result in a portfolio of companies with poor balance sheets, inadequate cash flows, and shrinking stock prices. A better way to go about it is to find a diversified dividend exchange-traded fund (ETF) that focuses on above-average yields without sacrificing long-term growth potential in the process.
Details
That way, you can capture the income, maintain quality in your portfolio, and diversify away some downside risk.
Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.