4 No-Brainer Dividend ETFs to Build Lasting Passive Income
Here are several different strategies for creating durable passive income streams for your portfolio.
Overview
Owning something with a yield of 7% or more may seem attractive. But it won't matter much if that yield isn't sustainable and the dividends can't grow over time.
Take Campbell's (NASDAQ: CPB) for example. The stock's yield rose to 7% recently before the company cut its dividend by 36% earlier this month. Yields don't matter if the company doesn't have the financial strength to support its payout.
Details
The better strategy is to own durable businesses with healthy balance sheets that generate strong cash flows. This gives the company greater ability to continue paying dividends and increase them over time. That can give investors something very valuable for their portfolios: a long-lasting passive income stream that grows wealth over time.
Source
Originally published at www.fool.com.
Related Articles
- 40,000 Employees Today and 4 Million Agents Tomorrow: Nvidia CEO Jensen Huang Believes Agentic AI Will Soon Become the Norm in the Workplace
- Stocks stumble on inflation fears, but 2 of our names give us reasons to stay bullish
- Managers are using AI for one of work's toughest tasks: Difficult employee conversations