3 Dividend-Paying ETFs to Double Down On Even if the S&P 500 Sells Off in October

Core Insights - The article emphasizes the benefits of investing in dividend-focused ETFs, particularly for generating income and potential price appreciation over time [1][5]. Dividend Income and Growth - Dividend-paying stocks can provide significant annual income; for instance, a portfolio of $400,000 with a 3% yield can generate approximately $12,000 annually, which is expected to grow over time [2]. - Healthy and growing dividend stocks typically increase their payouts, helping investors keep pace with inflation [3]. Investment Strategy - Investing in dividend-paying stocks can be a strategic move, especially during market downturns, as these stocks tend to provide regular income regardless of market conditions [4]. - The article suggests that market timing is ineffective, and investors should consider adding to their positions even during uncertain market periods [5]. Recommended ETFs - Three recommended ETFs include: 1. iShares Preferred and Income Securities ETF (PFF): Offers a high yield of 6.46% but with slower growth potential [6][8]. 2. Schwab U.S. Dividend Equity ETF (SCHD): Tracks high-quality companies with a yield of 3.79% and a strong performance record [6][10]. 3. Vanguard Dividend Appreciation ETF (VIG): Focuses on companies with a history of increasing dividends, yielding 1.64% [6][11]. Performance Metrics - The article provides performance metrics for the recommended ETFs, highlighting their average annual returns over 5 and 10 years, indicating a trade-off between yield and growth potential [6][7].