4 Things All Dividend Investors Need to Know About Building Passive Income Right Now
Follow these guidelines and you'll be on your way to building a durable and sustainable long-term income stream.
Overview
As tech, artificial intelligence (AI), semiconductor, and the "Magnificent Seven" stocks turn more volatile, investors are rediscovering the appeal of boring dividend-paying companies. (The Magnificent Seven term refers to Apple, Microsoft, Amazon, Alphabet, Nvidia, Tesla, and Meta Platforms.)
Year to date, the WisdomTree U.S. Total Dividend ETF (NYSEMKT: DTD) is beating the Vanguard S&P 500 ETF (NYSEMKT: VOO) by roughly 2%. On top of that, it's achieved that outperformance with substantially less volatility than the S&P 500 index.
Details
But dividend investing is one area where you can't just "buy the index." There are so many flavors and strategies for investing in dividend stocks that you really have to understand what your objective is, what type of income you're looking to generate, and most importantly what's actually in the dividend exchange-traded fund (ETF) you're choosing.
Source
Originally published at www.fool.com.