Key Points
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If you’re heading into retirement – or you’re already there — and need a reliable source of income, look into yielding Invesco ETFs.
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Not only do yielding ETFs offer a “retirement paycheck,” but they also help provide financial security, peace of mind, and can even help you pursue retirement goals.
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If you’re heading into retirement – or you’re already there — and need a reliable source of income, look into yielding Invesco ETFs.
Not only do yielding ETFs offer a “retirement paycheck,” but they also help provide financial security, peace of mind, and can even help you pursue retirement goals. Plus, with low expense ratios and substantial sector exposure, yielding ETFs simplify portfolio construction while maximizing income and stability. Also, many of the yielding ETFs have lower expense ratios.
As noted by Morningstar.com, “Exchange-traded funds that invest in dividend-paying stocks can be simple one-stop solutions for income seekers, for a few reasons: Dividend ETFs maintain a portfolio of dividend stocks and thereby provide instant diversification. Dividend ETFs are, in general, low-cost. Dividend ETFs are easy to buy and sell.”
That being said, we tracked down three of the top Invesco ETFs that can help create income.
Invesco High Yield Equity Dividend Achievers ETF
With an expense ratio of 0.53% and a monthly yield of 4.8%, the Invesco High Yield Equity Dividend Achievers ETF (NASDAQ: PEY) is based on the NASDAQ U.S. Dividend Achievers 50 Index.
The ETF will also invest at least 90% of its total assets in dividend payers in that index. In fact, some of its 52 holdings include Altria Group, Universal Corp., Verizon, Pfizer, Edison International, Polaris and Archer-Daniels-Midland, to name just a few.
In addition, the PEY ETF just paid out a dividend of $0.08549 per share on May 23. Prior to that, it paid a dividend of $0.07501 on April 25. Here, since the dividends come from 52 stocks, all of which have different payout schedules, the payment amounts can vary every month.
Also, since bottoming out at around $9 in early 2020, the PEY ETF rallied back to $20.14. From here, we’d like to see PEY initially retest its November high of $22.71.
Invesco S&P 500 High Dividend Low Volatility ETF
With an expense ratio of 0.3% and a monthly yield of 4.78%, Invesco S&P 500 High Dividend Low Volatility ETF (NYSEARCA: SPHD) is based on the S&P 500 Low Volatility High Dividend Index.
Thanks to its low expense ratio of 0.03%, investors get to keep more of the dividend income.
It invests 90% of its total assets in stocks that make up that index. Some of its 52 holdings include Altria Group, Crown Castle, Verizon, Philip Morris, VICI Properties, Realty Income, and AT&T, to name just a few. Its last dividend of $0.14559 was paid on May 23. Before that, its dividend was $0.14015.
Much like the PEY ETF above, since the dividends come from 52 stocks, all of which have different payout schedules, the payment amounts can vary every month.
Also, as noted by 247WallSt.com contributor Gerelyn Terzo, “Invesco’s SPHD ETF, which has been in the market since 2012, has a distribution rate of 3.65% attached, while over the past 12 months it has delivered returns of 9.41%. While this lags the S&P 500 somewhat, you are also missing out on much of the volatility that is inherent with the broader markets, especially lately. The expense ratio is among the lowest you’ll find at 0.30%.”
Invesco High Yield Select ETF
With an expense ratio of 0.5% and a monthly yield of 6.08%, the Invesco High Yield Select ETF (BATS: HIYS) is an actively managed ETF that hunts for income opportunities.
It does so by investing about 80% of its assets in higher-quality below investment-grade fixed income securities in a variety of sectors, including communication services, consumer discretionary, financials, industrials, energy, and materials, to name just a few.
We should also note that its last dividend of $0.13895 was paid out on May 23. Before that, it paid a dividend of $0.14351 on April 21. Its next one should be out in just days.
Other than these three, other hot income-producing Invesco ETFs include:
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Invesco QQQ Income Advantage ETF (NASDAQ: QQA): With an expense ratio of 0.29%, the QQA ETF provides investors exposure to the Nasdaq-100 Index combined with an active option income overlay for income generation. It pays a monthly dividend.
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Invesco S&P 500 Equal Weight Income Advantage ETF (NYSEARCA: RSPA): With an expense ratio of 0.29%, the RSPA ETF provides exposure to the S&P 500 Equal Weight Index combined with an active option income overlay for income generation. It also pays a monthly dividend.
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Invesco MSCI EAFE Income Advantage ETF (NYSEARCA: EFAA): With an expense ratio of 0.39%, the EFAA ETF offers exposure to the MSCI EAFE Index combined with an active option income overlay for income generation. It also pays a monthly dividend.
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