Higher Returns from Safe Investments: Using Bonds, Stocks, and Options to Generate Lifetime Income

Chapter 11. Equity ETFs for Dividend Income

In the previous chapter, we saw that historically, even conservative investors would have benefited by having up to 25% of their portfolio in equities. In this chapter and the two that follow, you see how to select stock market investments that are likely (but, unfortunately, not guaranteed) to be safer than the overall stock market with no reduction in potential returns. These investments will involve buying ETFs or mutual funds, which you can accomplish without being an expert at picking stocks and at a minimum of effort.

The Importance of Dividends

There are two sources of potential profit from owning stocks: capital gains and dividend income. Capital gains represent an increase in the price of ...