Core Insights - The article emphasizes the importance of selecting income-generating investments that are reliable and sustainable, rather than chasing high yields that may not be sustainable in the long term [2][3] Investment Strategies - Generating recurring income can enhance portfolio value and provide cash flow without selling stocks, which can be used for various financial needs [1] - Investing in exchange-traded funds (ETFs) is recommended for those seeking safe recurring income, as they offer diversification and lower risk compared to individual stocks [3] Schwab U.S. Dividend Equity ETF - The Schwab U.S. Dividend Equity ETF focuses on low costs, fundamental strength, and quality dividends, with an expense ratio of 0.06%, making it suitable for long-term investing [5] - The fund holds 103 stocks, prioritizing quality over sheer diversification, and averages a yield of around 3.9%, which is higher than the S&P 500 average of 1.2% [6][7] - Despite a 1% decline in the past year, the total return including dividends is above 2%, and over five years, total returns exceed 70% [8] iShares Core High Dividend ETF - The iShares Core High Dividend ETF is more selective, focusing on 75 high-dividend stocks, with a yield of 3.5% and an expense ratio of 0.08% [9][12] - The top three holdings—ExxonMobil (8.5%), Johnson & Johnson (6.7%), and AbbVie (5.8%)—account for 21% of the portfolio, indicating less diversification but potentially higher returns from major positions [10][11] - This ETF has seen a 6% increase in value this year, with a total return of nearly 8% when including dividends [13]