Want Decades of Passive Income? Here Are 2 ETFs Worth Owning Forever.
By focusing on both quality and yield, these two dividend equity ETFs are able to generate sustainable high yields that can last for years.
Want Decades of Passive Income? Here Are 2 ETFs Worth Owning Forever.
Overview
If you want to own a consistent income-producing machine in your portfolio, you need to focus on stocks with healthy balance sheets, strong cash flows, and a commitment to dividend sustainability. Anything other than that, and you risk inconsistent distributions or even dividend cuts if you take yield chasing too far.
Those factors are as important now as they have been at any point since 2022. That was the last time high inflation and high interest rates beat up tech, growth, and low-quality stocks. It was the durable, defensive stocks that held up well and even generated gains in some cases. The market's focus is still on tech and artificial intelligence (AI) stocks, but long-term-oriented portfolios are benefiting from smart dividend-income strategies.
Details
If you don't want to go through the hassle of picking individual winners, a number of exchange-traded funds (ETFs) do the work for you and do it well. They target stocks that demonstrate long-term dividend growth, balance sheet quality, and high yield. Those ETFs that consider more than one of these factors are especially attractive and can help ensure years of consistent dividend income from your portfolio.
Source
Originally published at www.fool.com.
