Love Dividend Income? Here's 1 ETF Worth Holding.
It's a great fit for investors who enjoy income but want to limit their risk.
Overview
If you're looking to generate more income from your investment portfolio, dividend-paying stocks can be a great place to start. When a company pays a dividend, it distributes a portion of its profits to shareholders. That means you can earn income simply by owning the stock, even if you don't sell your shares.
For retirees, dividend income can be especially valuable because it can help supplement Social Security benefits. And whether you're retired or not, dividend income can serve as a hedge against market downturns. Even if your portfolio value declines, dividend payments can continue, providing a stream of income while you wait for the market to recover.
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Source
Originally published at www.fool.com.