State Street SPDR Portfolio S&P 500 High Dividend ETF

SPYD

Market cap $7.35B

Market looks overheated? Earn stable income with high-dividend ETFs?

As anyone starts to wade into retirement, the first financial things on their mind are likely all about how to handle market volatility and inflation.

If you are a dividend investor, you should avoid the temptation of focusing only on the highest-yielding stocks. A better bet is to include high-yield stocks and stocks that offer the opportunity for dividend growth.

High-yielding stocks get a lot of attention. But a lot of them have underperformed over the long run. Which are better? High yielders or dividend growth stocks?

Market volatility sparks income hunt -- dividend ETFs like SCHD, CGDV, SPYD, IDV, FDL & DIVO under $50 offer steady yields and value.

A basket of dividend ETFs can provide a lifetime of passive income and low stress. The first five ETFs offer outsize yields from a combination of stocks, real estate, and bonds.

The SPDR Portfolio S&P 500 High Dividend ETF tracks the S&P 500 High Dividend Index, selecting the 80 highest-yielding stocks by dividend yield. SPYD is currently unattractive at the moment due to its holdings' negative earnings growth rates. In addition, I believe its lack of a quality screen hurts long-term shareholders. However, SPYD is one of only a handful of ETFs with estimated yields above 4%. This article lists eight others and picks four as possible alternatives to SPYD.

These ETFs use different strategies to select high-yield dividend stocks. They should provide investors with a steadily rising income stream.

In case you haven't heard, the U.S. government has a massive spending problem.

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