The choices and types of dividend stocks available are numerous, and there’s an exchange traded fund (ETF) for many of them.

A dividend is a payment that a company makes to you as a shareholder. Judy Alstar for Rightside Advisors explains that most payments are made at predictable rates, at regular intervals. Generally, firms make special dividend payments at year’s end, offer additional stock as payment, or spin-off ownership of another company. That might not be what you want, though, if you would prefer to take the payout.

Among the most commonly used dividend-generating equities are real estate investment trusts (REITs), closed-end funds and royalty trusts.

Dividend ETFs can be an excellent source of retirement income, says Dobromir Stoyanov for Seeking Alpha. At the beginning of this decade, 12% of the U.S. population was 65 or older, and the baby boomer generation is booming into retirement age. Social Security isn’t a sure thing anymore, and this could lead to a major demand shift in favor of dividend stocks and ETFs.

Among the many dividend ETFs:

• iShares Dow Jones Select Dividend Index (DVY)
• PowerShares International Dividend Achievers (PID)
• SPDR S&P Dividend (SDY)
• iShares Dow Jones EPAC Select Dividend (IDV)
• First Trust DB Strategic value Index (FDV)

Tags: REITs, Retirement