3 Dividend ETFs That Could Generate Thousands of Dollars in Passive Income
Key PointsThe Schwab U.S. Dividend Equity ETF has more than doubled its payout over the past decade.
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.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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