3 Dividend ETFs That Could Generate Thousands of Dollars in Passive Income
These three ETFs could turn $100,000 into more than $7,600 of passive income a year.
Three dividend ETFs can collectively generate thousands of dollars in passive income for working Americans who invest over a decade. The Schwab U.S. Dividend Equity ETF offers a lower yield but has grown its payout by more than double in a decade. With $100,000, this ETF can generate $1,067 in annual income, which is likely to increase.
The ETF's strategy screens for dividend-paying companies with strong cash flow, return on equity, and growth. Another option is the JPMorgan Nasdaq Equity Premium Income ETF, which offers an 11.5% 30-day SEC yield. However, this high yield comes with significant fluctuation risk. Investing $33,333 in this ETF could deliver $3,833 in annual income.
The Goldman Sachs S&P 500 Core Premium Income ETF strikes a balance between the other two, with a 8.2% yield. Its partial-overwrite strategy allows for dynamic adjustment of call coverage, differentiating it from traditional covered-call ETFs. Together, these three ETFs can provide approximately $7,633 in annual passive income, or $636 per month.
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