Income Investing with ETFs

Income investing is a very popular strategy, especially when the markets are volatile. Using ETFs can help you achieve this. And here are a few things you can look for when choosing a good ETF to invest in. 1. DividendsnnYou want your ETF to have dividends of course. The goal of income investing is after all to make an income off of your investments. You probably want to look at how much dividends a stock has been paying off in the past and compare it to how much dividend you are willing to accept before investing. 2. Strong GrowthnnYou don’t want to invest in a stock that is not likely to grow. I never want to end up in a situation where I am getting a dividend every month from an ETF but the ETF is trending down. Remember there two are other ways to make money from a stock other then dividends so strength and growth are key factors that should be considered. 3. Trending up or sidewaysnnStrong stocks can still get cut in half or worse. So it is safer to buy stocks that are either trending up or sideways as opposed to trying to bottom pick a stock. 4. Covered CallsnnBuying a long term ETF with options on it can be a great way to nmake monthly income from it by selling calls. Selling covered call allow you to take more income from a stock then dividends, but give you the risk of having to sell your stock sometime in the future. This is a great strategy and can be very profitable if you do it right. Getting into strong ETFs that offer dividends and covered calls, allows you to enjoy all three methods for making money. And with covered calls and dividends you don’t have to wait years to see your profit. For more on covered calls visit http://www.stocks-simplified.com/covered_calls.html For more on etfs visit http://www.stocks-simplified.com/What_Are_ETFs.html