#income-investing

#income-investing

Sure, there are some products that pay out increasing amounts over time (such as annuities and other structured products). But for investors holding more traditional portfolios consisting of a mix of stocks and bonds, the bond portion of one's portfolio is typically fixed or fluctuates alongside interest rate movements over time. In contrast, investing in dividend-paying stocks with a track record of raising their dividend distributions over time can provide passive income streams with inflation protection.

2025 has seen some record levels set by the Dow Jones Average and the S&P 500, but income based solutions, especially those depending on prevailing interest rates, were artificially high yielding due to glaring missteps by the Federal Reserve to cut rates during the massive double digit inflation under Bidenomics, and its stubborn refusal to cut rates during the Trump economic resurgence, which massive cut inflation and fuel prices, among other things.

First, if you're not familiar with ETFs, or exchange-traded funds, they're funds that invest in a bucket of assets. In the case of SCHD, the fund tracks the Dow Jones U.S. Dividend 100 Index. That index is comprised of high-quality U.S. businesses with at least 10 years of consistent dividend payments, and dividend payments that are deemed to be sustainable.

Listen up, dividend overachievers! With a mere $2,500 per stock or exchange traded fund (ETF), it's entirely possible to bring in $3,500 worth of passive income per year. To sweeten the deal, we can build out a master plan that will get you paid on a monthly basis and maybe even on a weekly basis. The trick is to look into the realm of real estate, where the stocks can pay surprisingly high yields.

The bigger question isn't whether you can earn a 5% yield, you can, but it's more of a question as to how to do so safely. This doesn't mean safe, like keeping your cash under a mattress safe, since there is no interest earned. On the other hand, you have to think about what your risk level truly is, and while you don't want to chase too much risk, you can't avoid it at all.

Even as the investing world continues to debate whether we are or are not in an "AI bubble," there shouldn't be any question whether AI-driven dividend stocks are still enjoying a moment. As artificial intelligence dominates much of the daily conversation in the tech world, these stocks and their shareholders are all enjoying outstanding returns. The good news is that not every AI-driven dividend stock is under the microscope as part of the bubble.

The STF Tactical Growth & Income ETF is an actively managed ETF that provides a very solid monthly yield while mitigating downside risk. It uses its own proprietary algorithmic model called the Tactical Unconstrained Growth (TUG) Model to do this. The fund invests across three main asset categories: U.S. equity securities or ETFs that replicate the NASDAQ-100 Index, long-duration U.S. Treasury securities, and short-term Treasury bills or cash equivalents.

Most dividend exchange-traded funds pay out every quarter. For many retirees, this does not align with how they spend money or budget, so it's worth looking into weekly ETFs like Roundhill Magnificent Seven Covered Call ETF (BATS:MAGY ) , and Nicholas Crypto Income ETF (NYSEARCA:BLOX ) . Weekly dividend ETFs are in very few people's bucket lists. They're a rare type of ETF, but they've done outstandingly well in the current environment.

There is no question that this market is obsessed with fast growth and flashy returns, something you can learn just by going online and looking at websites like Reddit and other trading forums. The thing is, dividend compounders win by doing the opposite of flashy, as it rewards patience. Instead of chasing the hype, the best dividend earners forget it and quietly reinvest profits through DRIP.

Bigger quarterly distributions can really add up over time. For serious yield hunters, the Fidelity High Dividend ETF ( NYSEARCA:FDVV) is a terrific pick in 2025. First and foremost, the FDVV features a trailing 12-month distribution yield of 3.1%. That's not a guarantee of the fund's future yield, but the Fidelity High Dividend ETF has been consistent in rewarding its loyal shareholders over the long term.

During these uncertain times, with further fallout from tariffs still threatening to rear its head, dividend income is more valuable than ever, and one particular dividend ETF , Vanguard's High Dividend Yield Index Fund ETF Shares (VYM) fund, moves to the front of the line. As the name suggests, this ETF targets large-cap domestic stocks that are on the radar to pay higher-than-average dividend yields based on forward dividend yield.

All of the major Wall Street firms we cover here at 24/7 Wall St. have a list of the top stock picks for their institutional and retail clients to invest in. Typically, these are companies that analysts have a high level of conviction in and feel strongly about their fundamentals and forward-looking prospects. In addition, they often have good upside to the assigned price target and are bestowed with either a Buy or Overweight rating, depending on the company providing the coverage.

"Because of the strong dividend income REITs provide, they are an important investment both for retirement savers and for retirees who require a continuing income stream to meet their living expenses. REITs' dividends are substantial because they are required to distribute at least 90% of their taxable income to their shareholders annually. Their dividends are fueled by the stable stream of contractual rents paid by the tenants of their properties," says REIT.com.