"After spending decades working hard and saving, retirees want their portfolios to get them through. At this point in their lives, they depend on capital preservation, consistent growth and low volatility within their portfolios. To achieve this, many turn to dividend stocks. These are stocks of companies that make regular payments to investors out of their profits. But you can also invest in dividend ETFs. These professionally managed funds invest in hundreds of dividend paying stocks hand picked by professionals."
"It seeks high quality dividend paying stocks. And it also screens these stocks for strong financials like cash flow. It tracks the Dow Jones U.S. Dividend 100 Index. Its holdings are highly contracted in energy, consumer staples and healthcare. The latter two are considered defensive sectors. This means they have been known to generally remain resilient even during market downturns."
Retirees prioritize capital preservation, consistent growth, and low volatility from portfolios. Dividend stocks and dividend ETFs provide regular payments and professional management across many dividend-paying companies. The best dividend ETFs screen for strong financials, consistent growth, and low volatility rather than only high yields. Six dividend ETFs were gathered as candidates for reliable income. The Schwab U.S. Dividend Equity ETF (SCHD) seeks high-quality dividend payers, screens for cash-flow strength, tracks the Dow Jones U.S. Dividend 100 Index, concentrates in energy, consumer staples, and healthcare, yields close to 4%, and carries a 0.06% expense ratio with over $71 billion in assets.
Read at 24/7 Wall St.
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