State Street SPDR S&P Dividend ETF

SDY

Market cap $20.2B

Whether you're just walking into the world of investing or getting closer to retirement, generating a powerful stream of regular income is a key goal for any investor.

The SPDR S&P 500 Dividend ETF (SDY) has averaged a 2.56% dividend yield over the past 12 months. A company must have 20 consecutive years of dividend increases to be included in SDY.

It's no wonder that dividend stocks are considered a strong defensive play—passive income is increasingly enticing in the face of a potential downturn—but what happens to investors when a dividend-paying firm faces challenges and has to reduce or cut its distributions? Keeping track of metrics like dividend payout ratio can be one way to protect against this risk, but for many investors the best solution is diversification.

If you're approaching retirement or are already retired, you'd be thinking harder than ever for ways to supplement your income.

If it's strong income and growth you're after, you may want to consider dividend-paying exchange-traded funds. We can look at high-yield dividend funds, which target companies with above-average yields in hot sectors such as consumer staples and telecommunications.

Dividend ETFs ensure retirement portfolios balance income, growth, and stability. Income-generating funds suit all ages, offering reliable payouts.

Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the SPDR S&P Dividend ETF (SDY) is a passively managed exchange traded fund launched on November 8, 2005.

Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the SPDR S&P Dividend ETF (SDY) is a smart beta exchange traded fund launched on 11/08/2005.

It doesn't hurt to have a source of passive income in your retirement supported by your investment portfolio.

Income is lagging growth this year. But companies like Seagate, Newmont, Tapestry and CVS offer the best of both worlds: solid dividend yields and strong stock performance.