These 2 Dividend ETFs Are a Retiree's Best Friend
The typical investor spends years investing for retirement through a combination of 401(k) plans, individual stocks, exchange-traded funds (ETFs), mutual funds, and other retirement investment vehicles.
Ideally, they build a portfolio that will sustain them throughout their retirement years. But when they actually do reach retirement, it is also important to have one other type of investment -- one that generates income while they are in their retirement years. A good way to do this is to shift some of that portfolio into an ETF that is focused on dividend income. Here are two excellent options.
The Invesco S&P Ultra Dividend Revenue ETF (NYSEMKT: RDIV) pays out one of the highest dividend distribution rates among dividend ETFs. It has a distribution rate of 3.94% and a 12-month distribution rate, which takes the average interest and dividend payments over the trailing 12 months, of 3.45%. Because ETFs are composed of multiple stocks, the 12-month rate gives investors a better snapshot of the dividend yield.
Source Fool.com
