Exchange-traded funds (ETF) are a fantastic way to boost your passive-income potential beyond just traditional stocks. These investment vehicles pool money from multiple investors to buy a diversified portfolio of assets, including stocks, bonds, and even real estate. What makes them especially appealing for income-seeking investors is that many ETFs focus on dividend-paying stocks or fixed-income securities. This can provide regular income streams through dividends or interest payments.
Plus, they often come with lower fees compared to actively managed funds, making it easier to keep more of your earnings. So, whether you’re looking for exposure to a specific sector or want to create a diversified income portfolio, ETFs can be a smart choice for generating high income while you sit back and enjoy the benefits!
HDIV
Hamilton Enhanced Multi-Sector Covered Call ETF (TSX:HDIV), is a popular choice for investors looking to boost their income through dividends. This fund focuses on high-quality, dividend-paying stocks and is designed to provide a steady stream of income while also aiming for capital appreciation. With its diversified approach, HDIV invests in a range of sectors, making it a great option for those who want to reduce risk while still enjoying the benefits of dividend income. Plus, the ETF’s managers actively seek out opportunities to enhance yield. This means you might find even more attractive dividends coming your way!
What makes HDIV particularly appealing is its commitment to delivering monthly distributions, which is music to the ears of income-focused investors. The ETF typically targets a yield that exceeds that of many traditional equity investments, giving you the chance to enjoy a reliable income flow. Additionally, being a part of a fund means you don’t have to worry about selecting individual stocks. The management team does the heavy lifting for you. So, if you’re on the hunt for a way to generate passive income while maintaining a diversified portfolio, HDIV could be a solid addition to your investment strategy!
Why buy now?
The HDIV ETF is a compelling option now for investors seeking high income through a diversified portfolio. With an impressive yield of 10.65% at writing, it stands out as a strong contender for those looking to boost their passive income. The ETF has shown solid performance with a year-to-date total return of 14.96%, highlighting its ability to generate attractive returns for investors. What makes HDIV particularly appealing is its focus on high-quality dividend-paying stocks, with about 85.88% of its assets allocated to equities across various sectors. Primarily financial services, technology, and utilities. This diversification helps mitigate risk while providing the potential for capital appreciation.
Another key highlight is HDIV’s management strategy, which involves investing in other yield-maximizing ETFs, including those focused on sectors like energy, healthcare, and technology. This approach not only enhances the income potential but also allows for a more dynamic investment strategy without needing to actively manage individual stocks. With a low expense ratio and no exposure to bonds, HDIV is tailored for income-oriented investors. For those looking for a steady stream of income with the potential for growth, HDIV offers a robust solution, making it a trustworthy addition to any income-focused investment portfolio.
Bottom line
So, let’s say you were to put $10,000 towards HDIV ETF right now. Here is what that could turn into through dividend income!
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | PORTFOLIO TOTAL |
| HDIV | $17 | 588 | $2.052 | $1,206.58 | monthly | $10,000 |
That’s right. Invest in this ETF, and you will gain another $1,206.58 in dividends alone, not even including returns. Monthly, that’ll come to a whopping $100.55.
