2024-06-02 06:41:00 ET
Investing in dividend stocks is one of the easier ways to generate passive income. The only work you need to do is build a diversified portfolio of high-quality, high-yielding dividend-paying stocks. You can then sit back and watch the dividend income flow into your account.
An even easier pathway to passive income is to invest in an exchange-traded fund (ETF) focused on higher-yielding dividend-paying stocks. Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) and Vanguard Real Estate ETF (NYSEMKT: VNQ) are great options. These ETFs each hold over 100 higher-yielding dividend-paying stocks, providing instant diversification. Here's a closer look at these two higher-yielding dividend ETFs .
Schwab U.S. Dividend Equity ETF is a passively managed fund that tracks the total return of the Dow Jones U.S. Dividend 100 Index. That index features 100 of the country's top dividend stocks and focuses on higher-yielding companies with strong records of consistently paying dividends. It selects companies based on their financial strength compared to their peers.
For further details see:
2 High-Yield Dividend ETFs to Buy to Generate Passive Income