Living off passive income can be a dream for many people looking to achieve financial independence. One way to generate passive income is through investing in dividend exchange-traded funds (ETFs). Dividend ETFs are a popular choice for investors seeking a steady stream of income without the hassle of picking individual stocks.
Investing in 3 dividend ETFs can provide diversification and steady returns over time. By choosing the right mix of ETFs that focus on dividend-paying companies, investors can build a portfolio that generates a consistent cash flow.
One example of a dividend ETF is the Vanguard Dividend Appreciation ETF (VIG), which tracks the performance of companies that have a history of increasing their dividends year over year. This ETF provides exposure to well-established companies that have a strong track record of generating profits and rewarding shareholders.
Another option is the iShares Select Dividend ETF (DVY), which focuses on high-dividend-paying companies in the U.S. This ETF is a good choice for investors looking for a higher yield and stable income stream.
Lastly, the SPDR S&P Dividend ETF (SDY) tracks the performance of companies that have a history of consistently paying dividends. This ETF provides exposure to a diversified portfolio of companies across various sectors.
By investing in these 3 dividend ETFs, investors can create a steady stream of passive income that can support their living expenses. With dividend ETFs, investors can benefit from the power of compounding returns and potentially grow their wealth over time.
It is important to note that investing in dividend ETFs comes with risks, such as market volatility and changes in interest rates. It is also important to regularly monitor the performance of the ETFs and make adjustments to the portfolio as needed.
Overall, living off passive income from 3 dividend ETFs is a simple and effective way to achieve financial independence. By creating a diversified portfolio of dividend-paying companies, investors can generate a consistent cash flow that can support their lifestyle in the long run.
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So true! Thanks for the quick breakdown. Have you done a detailed breakdown on all three of these? Rate of return fees, etc.?
Do you think adding a non correlated REIT ETF would benefit the 3 fund portfolio, making it a 4 fund portfolio with about 10-15% allocation?
I like SCHD and VYM. Thinking about adding HDV depending on overlap
good diversity, but many are taxed at ordinary tax rates. Many pay good dividends, but you experience a capital loss over time. not a good tradeoff. Seek out ETFs that pay a dividend and work to at least grow slowly like MAIN, SCHD and others. A simple look at the ETFs chart will tell you if it's going in the right direction.
keep pumping out those financial shorts Professor G!!!!
I’d like to see a longer video on how to avoid excessive stock overlap with ETFs in general and dividend ETFs in particular.
VYM, DGRO, HDV and QQQM❤