"Retirees looking for a bit of relative stability and a bit of extra yield may wish to check out the broader basket of dividend-focused ETFs. Undoubtedly, there's a lot to pick from, whether you're looking for a pure equity-focused ETF with exposure to above-average yielders with great financial health and decent growth prospects, or if you don't mind paying a slightly higher expense ratio to leverage covered calls into the equation for premium income on top of dividends paid out."
"Either way, shares of the 3.82%-yielding ETF are now up 10% year to date. And the outperformance might not yet be over, especially if the S&P gets dragged down by tech. With a 0.69 beta, the Schwab U.S. Dividend Equity ETF might not be bothered at all by the sell-off in software. And if an AI bubble does end up popping, this ETF might not be held back, especially as investors rush to rotate back into the proven, boring dividend payers."
Retirees seeking stability and extra yield can consider dividend-focused ETFs that target above-average yielders or use covered-call strategies for additional premium income. Covered-call ETFs typically have higher expense ratios but can boost cash distributions beyond standard dividends. Current market volatility and concentrated tech risk make low-beta, income-oriented approaches and defensive sectors such as consumer staples more attractive. Schwab U.S. Dividend Equity ETF (SCHD) yields about 3.82%, has risen roughly 10% year-to-date, and carries a 0.69 beta, offering reduced exposure to software sell-offs and potential resilience if growth areas reverse.
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