If you’re interested in getting into the S&P 500, it seems like a good time to do so. Earnings are rising, GDP growth is strong, the unemployment rate is falling, and wages are heading upward.
There’s just one problem: as I wrote a few months ago, the S&P 500 is a lousy bet.
There are a couple reasons why, the biggest being the income problem. If you buy into the SPDR S&P 500 ETF (NYSEARCA:SPY) or the Vanguard 500 Index Fund (NYSEARCA:VOO), you’re going to get a dividend yield of less than 2%. So buy $500,000 worth of those funds and get a whopping $791 monthly in cash dividends.
That’s just not good enough.
Today I want to show you 3 funds that yield over 9%, on average. Buy into this trio with $500,000 and you’ll get $3,837 in monthly income.
Now that’s more like it!
The best part is that these funds provide this higher income stream without taking on much more risk than SPY and VOO. In fact, all three invest most of their net asset value (NAV) in S&P 500 companies.
Let’s look under the hood and see how they’re paying those outsized dividends.