Dividends4Life: These 3 Dividend ETFs Are a Retiree's Best Friend

Investing in exchange-traded funds can help retirees solve two challenges they might face in the golden years. Markets change, innovations bring new companies to the forefront, and the profitable companies of today may not be the profitable companies of tomorrow. First, it can ease the pain that comes from researching individual stocks and stressing over which choices to make. The second challenge to solve is how to generate consistent income in order to replace the once-timely paychecks. Dividend ETFs that pay a monthly dividend can help retirees enjoy a well-managed budget.

As its name implies, Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) aims to track an index that focuses on the S&P 500 stocks that deliver the highest dividends with the lowest volatility. The Vanguard High Dividend Yield ETF ( VYM 0.48% ) is a good fit for retirees wanting to get the most out of their dividend while benefiting from a low cost to do so -- at a ground-level 0.06% expense rate. Last but certainly not least is the WisdomTree LargeCap Dividend Fund ( DLN 0.61% ), providing exposure to large-cap equities, based on a benchmark that uses dividends to determine asset weighting.

Source: Motley Fool

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