3 Dividend ETFs That Are Perfect For Retirees
Dividend stocks are ideal for people who are at or near retirement. Compared to their more growth-focused counterparts, these investments tend to involve less risk due to the mature nature of their industries. Dividend stocks deliver a stream of passive income that can be extremely valuable when you've exited the workforce and lack that steady paycheck, too.
However, there are downsides to investing in them as well. As is true with any individual stock purchase, you risk shares dramatically underperforming the market due to any number of unforeseeable events. Any single dividend stock could also simply be a drag on your portfolio's returns through weak capital appreciation or tiny annual dividend hikes.
That's where exchange-traded funds (ETFs) shine. You can own a basket of dividend stocks through these funds, instantly delivering diversification without sacrificing much yield. Let's look at a few great ETFs, along with some strategies for incorporating them into your retirement portfolio.
Source Fool.com
