Passive income of 3 top dividend ETFs purchased in June in March

Invest in exchange-traded funds (ETFs) Extremely good Easy to collect passive income. Many funds have income-focused strategies, which allow investors to sit down and watch income flow into their accounts.

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this Schwab US Dividend Equity ETF (nysemkt:schd),,,,, Vanguard Utility ETF (nysmkt: VPU)and Pioneer Real Estate ETF (nysemkt:vnq) It's the top three Dividend ETF. Each fund should be able to provide reliable passive income over the next few decades, which allows them to purchase this June to collect the rest of your life.

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this Schwab US Dividend Equity ETF Tracking index (Dow Jones Jones U.S. Dividend 100 Index) Companies focusing on paying quality, sustainable high-yield dividends. It screens companies based on several dividend quality factors, including yield and five-year dividend growth rate.

The fund focuses on higher stocks Provide investors The current revenue stream is relatively high. In the 12 months behind, the fund's revenue yield was about 4%. This is more S&P 500' Dividend yield (approximately 1.3%).

ETFs are also designed to keep stocks stable record increase Their The dividend should continue. As a result, the fund has steadily paid investors higher allocations over the years.

Schd Dividend Chart
YCHARTS SCHD dividend data.

Over the past five years, the fund's current holdings have increased by more than 8% per year. Its balanced blend of yield and growth stances, and the fund provides investors with a lot of passive income over the next few decades.

Vanguard Utilities ETF holds companies operating Utilities department. These companies distribute electricity, water or natural gas to customers based on government-regulated interest rate structures or long-term contracts. As a result, they generate stable and growing cash flows. This supports their ability to pay above-average and steadily rising dividends.

The ETF currently has 68 utilities. These companies will benefit from the expected surge in electricity demand over the coming decades. According to some forecasters, catalysts such as AI data centers, boarding in manufacturing and electrification of everything could boost U.S. electricity demand by 55% in 2040. drive Electricity prices and fuel growth opportunities build more power plants and power transmission lines for utilities.

These growth drivers should give these companies enough power Continue to increase Their higher yield dividends should enable the fund to be able Steadily pay higher distributions to investors. The current output is 2.9%.

this Pioneer Real Estate ETF invest Real Estate Investment Trust (REITS). These entities invest in commercial real estate, such as office buildings, warehouses and apartments. These properties generate rental income, which REIT must distribute to the majority of investors Stay compliant with IRS regulations. (If at least 90% of the taxable net income income is distributed to shareholders, they will not pay income tax at the corporate level.) As a result, REIT tends to pay high-yield dividends (the current revenue of ETFs is 3.6%).

The fund currently holds 158 real estate stocks. Many of these companies have a long history of growing dividends. There are two factors in dividend growth in the REIT sector: rising rents and investing to grow its portfolio. Many long-term leases have lease upgrade clauses, while other property types have shorter leases, allowing landlords to sign new leases when higher market rates expire.

Meanwhile, many REITs expand their portfolios by developing new properties, completing reconstruction projects, and acquiring real estate, portfolios or other REITs. These drivers increase rental income, allowing them to increase their dividends. Position this ETF as steadily Allocate more cash to investors.

Schwab U.S. dividend equity ETF, Vanguard Utilities ETF and Vanguard Real Estate ETF have companies that tend to pay higher dividends. In addition, many companies have the goal Steadily increase their spending. So they are the great ETFs to buy this June to set themselves up arrive possible Collect passive income for a lifetime.

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Matt Dilallo has a position in the Schwab US Dividend Equity ETF. Motley Fool has a place and recommends the Vanguard Real Estate ETF. Motley Fool has a disclosure policy.

Motley Fool initially published 3 top dividend ETFs purchased in March, Passive Income for Life was originally published