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These 3 Dividend ETFs Are a Retiree s Best Friends

(James Brumley) It s not exactly a secret that your age largely dictates how you invest. Younger people with growing wages can afford to take greater risks on growth stocks, since they have time to recover from any cyclical setbacks. Older investors may not have that sort of time or stomach for volatility and as such tend to play things a bit more conservatively. Investors already in retirement need even more safety, but also likely need their portfolios to produce income. And there are certainly more than enough reliable dividend stocks for them to consider. Individual dividend-paying stocks, however, aren t necessarily a retiree s only income-oriented option. Some exchange-traded funds (ETFs) are built from the ground up to serve as a substitute for a collection of hand-picked dividend stocks. Here s a rundown of the first three such ETFs a retiree might want to consider.

3 Vanguard Dividend ETFs That Could Make You Rich

KXLY April 11, 2021 5:30 AM newsfeedback@fool.com (Katie Brockman) Posted: Updated: April 11, 2021 6:41 AM Dividend stocks can be a smart addition to your portfolio, as they provide long-term earning potential as well as a source of passive income. However, choosing dividend stocks can be challenging. Investing in individual stocks requires a substantial amount of research, and it’s often expensive as well. If you’re looking for a less research-intensive approach, investing in a dividend ETF may be your best bet. Each ETF can contain hundreds of different stocks, which instantly diversifies your portfolio and limits your risk. There are many dividend ETFs to choose from, but these three Vanguard powerhouses are a great place to start.

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