In today’s low interest rate environment, retirees looking for income from their investments are increasingly looking toward stock dividends.
That can be dangerous, as dividends are never guaranteed payments, and dividends that are too high often end up as yield traps where the income ultimately evaporates.
Because of the extra risks associated with looking to dividends for income, many retirees look to dividend-focused ETFs instead of individual stocks in order to spread out those risks.
Such a move can more easily provide a better diversified portfolio, thus reducing the impact to the investor of any one company’s dividend cut. With that benefit in mind, these four dividend ETFs could be a retiree’s best friend in that quest to get some sort of income in today’s environment.