I’ve touted many passive index funds in the past as great vehicles for long-term investors to grow their wealth. However, with most indices and sectors typically providing relatively low dividend yields (with the average S&P 500 yield around 1.3% at the time of writing), that’s not a lot of passive income for those looking to generate a reliable income stream in retirement.
The good news is that there are plenty of exchange traded funds (ETFs) which are almost entirely focused on creating market-beating yield for those entering or nearing retirement. I’m going to focus on three such funds I think long-term investors looking for dividend growth over time (as a greater proportion of their overall total return) may want to consider.
This post originally appeared at 24/7 Wall St.