Retirement is a long, slow walk through a minefield of dwindling assets. Sell shares, and you might outlive your savings. But there’s another path-ETFs, those silent partners in your portfolio, trading like stocks but paying dividends like a well-timed punch.
I’ve seen men lose everything to the clock. I’ve watched them sell their soul for a quick fix. But I’ve also seen the quiet power of dividends. A steady drip, not a flood, but it adds up. Here are three ETFs that might keep the lights on.
Can you get $1 million in passive income?
A million a year? That’s a tall order. You’d need a $33 million portfolio at 3% yield, or $16 million at 6%. It’s a heavy bag of coins. Most blue-chip stocks yield 2-4%, with exceptions like Verizon’s 6.4% or Realty Income’s 5.7%. The S&P 500? A hollow promise-1.2% with half its members paying nothing.
These numbers aren’t a joke. They’re a ledger. A $500k portfolio at 3% gives $15k. A million? $30k. A $33 million? A million. The math is cruel, but the math is clear.
| Portfolio Value | Overall Average Dividend Yield | Annual Income |
|---|---|---|
| $500,000 | 3% | $15,000 |
| $1,000,000 | 3% | $30,000 |
| $2,000,000 | 3% | $60,000 |
| $33,333,333 | 3% | $1,000,000 |
Double the yield, halve the portfolio. A $16 million nest egg at 6% gives the same $1 million. But that’s a lot of coins in a very heavy bag.
| Portfolio Value | Overall Average Dividend Yield | Annual Income |
|---|---|---|
| $500,000 | 6% | $30,000 |
| $1,000,000 | 6% | $60,000 |
| $2,000,000 | 6% | $120,000 |
| $16,666,667 | 6% | $1,000,000 |
Take comfort in the smaller numbers. A $30k or $60k income with a more reasonable portfolio. It’s not a miracle. It’s a calculation.
Three ETFs that could generate lots of passive income for you
You’re looking for the right partners. Here are three that might work:
| Exchange-Traded Fund (ETF) | Recent Yield | 5-Year Avg. Annual Return | 10-Year Avg. Annual Return |
|---|---|---|---|
| Schwab U.S. Dividend Equity ETF (SCHD) | 3.9% | 11.49% | 11.24% |
| Fidelity High Dividend ETF (FDVV) | 3.1% | 17.56% | N/A |
| Vanguard High Dividend Yield ETF (VYM) | 2.6% | 13.79% | 10.51% |
SCHD’s 3.9% is a steady drip. FDVV’s 3.1% is a cautious sip. VYM’s 2.6% is a whisper in the dark. None of them are miracles, but they’re not liars either.
If you want a higher yield, PFF’s 6.5% is a siren song. But its returns? A slow slide. Preferred stocks pay dividends, but they don’t dance. JEPI and JEPQ offer 8.4% and 11.2%, but they’re a high-stakes poker game. Know the rules before you sit down.
Passive income isn’t a magic trick. It’s a long game, played in the shadows. And the house always wins… unless you know the rules.
💰
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2025-08-16 12:51