These 3 Dividend ETFs Are a Retiree's Best Friend
Dividend exchange-traded funds (ETFs) give income-focused investors an attractive alternative to bonds or stocks, particularly during periods when the latter two are struggling.
Most dividend ETFs invest in a variety of dividend-paying stocks, and many of the most popular ETFs track blue-chip companies with solid dividends and safe payout ratios. It's a way to give investors a little less risk while offering a regular income stream, something that concerns many retirees.
Not all dividend ETFs are created equal. It's important that investors look at volatility, because too much volatility equals risk. It's also crucial to examine the expense ratio of the ETFs, because a fund with an excessively high management expense ratio (MER) can easily eat into profits. Generally, though, dividend ETFs have lower MERs than dividend-focused mutual funds because there is less turnover among the holdings in a typical ETF.
Source Fool.com
