2 Magnificent ETFs for Retirees That Pay More Than 3%
These funds hold around 100 stocks each and have been outperforming the market this year.
Overview
Dividend-paying investments can be valuable for all types of investors. For retirees, they can be particularly crucial in generating a steady stream of income to help cover day-to-day expenses, especially as inflation rises. The income they bring in can also lessen the need to deplete savings and other investments.
A good dividend investment should offer not only a good yield but also some safety. Ideally, it shouldn't be something that needs to be monitored closely (which can be the case with risky dividend stocks that have high, unsustainable payouts).
Details
This is why exchange-traded funds (ETFs) are highly valuable here. They provide diversification and dramatically reduce the risk that can come with investing in individual dividend stocks. A couple of ETFs that are truly magnificent, offering investors not only above-average payouts but also some excellent diversification, are the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) and the iShares Select Dividend ETF (NASDAQ: DVY). Here's why they can be excellent options for retirees to consider for their portfolios.
Source
Originally published at www.fool.com.