2024-03-09 08:15:00 ET
Summary
- Passive income from dividend ETFs can provide some key benefits.
- Moreover, high-yielding monthly paying ETFs like SPYI and JEPQ add even greater benefits.
- We compare SPYI and JEPQ and share our view on which is the better buy right now.
Generating lucrative monthly passive income from dividend ETFs can be truly life changing:
- The monthly passive income can help keep your mind calm and rational during market volatility since the psychological boost of seeing regular cash flow hit your account from your investments can focus your perspective on the long term rather than the daily gyrations in your portfolio value.
- Living off of passive income from dividends can free you from the need to work to support yourself once your passive income exceeds your living expenses. Moreover, since ETFs are diversified portfolios that are managed for you, they make for truly passive investments.
- Receiving cash flow on a monthly basis can help you better gauge how close you are to achieving financial independence (i.e., your passive income exceeding your expenses) since you can more easily compare it to your monthly expenses.
- High-yield monthly dividend ETFs can dramatically accelerate your retirement timeline since they throw off a lot more passive income than lower-yielding stocks and even some bonds do.
- Retiring on dividends reduces the sequence of return risk since you never have to sell your principal/shares to fund living expenses and can instead just live off the stream of passive income. This can make you agnostic to market volatility, in contrast to those who are dependent on stock market returns in order to support their retirement plans.
Read the full article on Seeking Alpha
For further details see:
Retire With 9-12%-Yielding Monthly Dividends: SPYI Vs. JEPQ