2 High-Yielding ETFs That You Can Rely on for Recurring Income
Generating recurring income for your portfolio can be a great way to grow its value and provide you with a way to generate cash flow without having to sell stocks. You can then use that money to pay bills, pad your savings, or even have it reinvested back into stocks.
What's important when investing in income-generating investments is picking ones that you can safely rely on. Chasing high yields can lead to trouble later on if those payouts don't prove to be sustainable. In some cases, it's just bad luck where a dividend stock you've invested in ran into challenges that it couldn't get itself out of, and it had no choice but to reduce its payout.
Some risk is unavoidable when you're investing in individual stocks. And that's why, if your goal is to generate safe recurring income, you may want to consider investing in exchange-traded funds (ETFs) that can provide you with an easy way to diversify. Two ETFs that can be ideal options in this case are the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) and iShares Core High Dividend ETF (NYSEMKT: HDV). They both pay above-average dividends and can be excellent investments to hang onto for years.
Source Fool.com
