That's where income-focused exchange-traded funds (ETFs) can shine.

By pooling together dozens or even hundreds of dividend-paying shares, they give investors instant diversification and consistent distributions.

If you're looking to grow a portfolio designed for a lifetime of passive income, the two ASX ETFs named below could be worth considering.

Betashares S&P Global High Dividend Aristocrats ETF (ASX: INCM)

For investors wanting to look beyond Australian shares, the new Betashares S&P Global High Dividend Aristocrats ETF could be a great pick.

This ASX ETF invests in stocks across developed markets that have increased or maintained their dividends for at least 10 consecutive years — a group often referred to as dividend aristocrats.

The ETF's top holdings include global giants like Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), Broadcom (NASDAQ: AVGO), Verizon Communications (NYSE: VZ), and Nestle (SWX: NESN). With around 100–200 stocks in the portfolio, it delivers strong diversification across sectors and geographies.

The Betashares S&P Global High Dividend Aristocrats ETF currently trades on a trailing dividend yield of 2.8%, with income paid quarterly.

While that is lower than the Australian share market's average yield, the focus here is on consistency and global diversification. The fund's index has historically provided lower volatility and downside protection compared to the broader global market — qualities many retirees and income-focused investors are likely to value highly. Betashares recently named it as one to consider.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

Closer to home, the Vanguard Australian Shares High Yield ETF is one of the most popular income-focused funds on the ASX. It invests in large, established Australian shares with above-average dividend yields, many of which also offer the benefit of franking credits.

Currently, the ASX ETF trades with a trailing dividend yield of 4.6%, paid quarterly. That means a $50,000 investment could potentially generate around $2,300 a year in income — before franking credits.

The fund holds ASX shares across the financial, resources, and consumer sectors, meaning investors aren't reliant on just one industry to provide their passive income. This includes the likes of Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), Telstra Group Ltd (ASX: TLS), and Woodside Energy Group Ltd (ASX: WDS).

Another strength of the Vanguard Australian Shares High Yield ETF is its disciplined, rules-based approach to selecting high-yielding shares. By avoiding the temptation to chase unsustainably high dividends, the fund seeks to deliver income that investors can rely on year after year, while also capturing the long-term capital growth of Australia's leading businesses.

The post 2 of the best ASX ETFs to buy for a lifetime of passive income appeared first on The Motley Fool Australia.

There are many dividend-focused ETFs on the ASX. Some popular choices include the Vanguard Australian Shares High Yield ETF (ASX: VHY) and the SPDR MSCI Australia Select High Dividend Yield ETF (ASX: SYI).

But today, let's discuss two lesser-known income funds that I think have the potential to give any passive income seeker a significant boost in cash flow today.

2 ASX ETFs that can help maximise your dividend income today

BetaShares Global Royalties ETF (ASX: ROYL)

Royalties stocks aren't a common go-to for income seekers on the ASX, but this may be to their detriment. This ETF from Betashares holds a portfolio of stocks that receive regular royalty payments and pass these along to their investors in the form of dividends.

ROYL holds companies that mostly span three different industries: mining and energy, intellectual property, and financing. Some of its largest holdings include Wheaton Precious Metals, Universal Music Group, and ARM Holdings. Royalty payments can be an attractive form of income, as they tend not to be as influenced by the economic cycle as other popular income investments.

The Betashares Global Royalties ETF pays a monthly dividend distribution to investors – a policy it began in 2025. As of 31 July, the ETF was trading on a trailing yield of 3.5%. This fund has averaged a return of 17.68% per annum since its inception in September 2022.

BetaShares S&P Global High Dividend Aristocrats ETF (ASX: INCM)

This fund, also from provider Betashares, has had a makeover this month. Formerly known as the Betashares Global Income Leaders ETF, it now focuses on holding companies from advanced economies outside Australia that have either maintained or increased their dividend payments for at least ten consecutive years.

I like this change of focus, as it is my belief that a consistent dividend is one of the strongest indicators that a company can be a market-beating investment. Some of the stocks that you'll find in the INCM portfolio currently include Microsoft Corporation, Broadcom, Apple, Exxon Mobil, Johnson & Johnson, and Texas Instruments Inc.

This ETF pays out quarterly dividend distributions. Its last four total $1.16 per unit, giving the Betashares High Dividend Aristocrats ETF a trailing yield of 6.04% at current pricing.

The post Maximise your dividend income with these 2 ASX ETFs appeared first on The Motley Fool Australia.

After all, utilities are businesses that tend to provide goods and services that we all use on a regular basis. This could be electricity, gas, water, telecommunications, or transport services. As such, their cash flows, and thus dividends, are typically some of the most defensive and dependable you can find on the market.

This makes utility shares very desirable for retirees and other investors who prioritise stability and income from their stock market portfolios rather than high rates of growth or market outperformance.

Whilst the ASX doesn't have any ETFs that are explicitly dedicated to utility stocks, it does have two exchange-traded funds that heavily employ their services to deliver reliable dividend income. Let's dive in.

Two ASX dividend ETFs that feature utility shares

BetaShares Global Income Leaders ETF (ASX: INCM)

This ASX ETF from provider BetaShares invests in a portfolio of global shares that are selected for their attractive and sustainable dividend income potential. Some of the utility shares it holds include AT&T, Verizon, Duke Energy, and American Electric Power Co.

Some of its other non-utility holdings are names you may know, too, such as Kraft Heinz, Chevron, JM Smucker Co, and IBM.

This ETF pays out a dividend distribution every three months, which may please some ASX income investors. Over the past 12 months, INCM's four quarterly dividends amounted to 79.2 cents per unit, which gives this ASX ETF a trailing dividend distribution yield of 4.09% at current pricing.

SPDR S&P Global Dividend Fund (ASX: WDIV)

Next up, we have this ASX ETF from State Street Global Advisors. This exchange-traded fund functions similarly to INCM, holding over 100 dividend shares. These hail from multiple countries across the globe. This ETF's stocks are also selected for their dividend sustainability, as well as strong cash flows and defensive nature.

It also holds utility shares like AT&T, Saudi Electric Co, China Railway Group, Canadian Utilities, and our very own APA Group (ASX: APA). In addition, WDIV offers other defensive stocks too, such as Altria, Pfizer, and Amcor.

As is typical on the ASX, WDIV follows a six-month dividend distribution schedule. Over the past 12 months, this ASX ETF's dividend distributions have totaled 88 cents per share. That gives this ETF a trailing dividend distribution yield of 4.39% at current pricing.

The post Power up your defences: 2 ASX utility ETFs for steady income appeared first on The Motley Fool Australia.

And if you're not a fan of stock picking, don't worry.

That's because there are exchange traded funds (ETFs) out there that allow you to avoid picking individual stocks and focus purely on income generation.

Which ASX ETFs could be used to generate passive income?

The team at Betashares has been looking at the different options that investors have available to them and have picked out a few to consider.

The first group of ASX ETFs we will look at are equity income options. It commented:

Equity income can provide an attractive income stream from a portfolio of equities, often with distributions paid monthly or quarterly. Some strategies may offer tax advantages, such as franking credits, helping investors maximise their after-tax returns. Investors may benefit from potential appreciation in the value of the underlying stocks.

The fund manager has picked out the Betashares Australian Top 20 Equity Yield Maximiser Fund (ASX: YMAX) and the Betashares Global Income Leaders ETF (ASX: INCM) as two to consider.

In respect to the former, it aims to produce attractive quarterly income and reduce the volatility of portfolio returns through a covered call strategy over a portfolio of the 20 largest blue chip shares listed on the local share market.

Whereas the Betashares Global Income Leaders ETF aims to track the performance of an index that comprises 100 high-yielding global companies (excluding Australia) that are selected for their potential to generate attractive and sustainable income.

Don't forget hybrids

Betashares also highlights that hybrids could be used to generate passive income. It said:

Hybrids generally offer a higher level of income than shares or fixed income, with a greater level of capital stability than shares. They can offer franking credits, improving after-tax returns. Betashares' hybrid funds pay distributions monthly.

One is the Active Australian Hybrids Fund (ASX: HBRD). It aims to provide investors with attractive income returns from an actively managed, diversified portfolio of primarily hybrid securities.

It pays income monthly at a rate expected to be significantly higher than cash and senior bonds, along with franking credits.

Fixed income

Another option for income investors to consider with ASX ETFs is fixed income. Betashares notes:

Fixed income typically offers a higher level of capital stability than equities. Some types of fixed income, particularly long-term government bonds, may offer a negative correlation to equities. This means that the value of the bonds increases as share prices fall, helping to smooth out volatility. It offers a consistent, and more predictable income compared to share dividends, with distributions paid monthly or quarterly.

It is tipping Betashares Australian Composite Bond ETF (ASX: OZBD) and BetaShares Australian Government Bond ETF (ASX: AGVT) as two to consider buying.

OZBD is designed to be a core portfolio allocation for fixed income, aiming to track the performance of an index that provides exposure to a diversified portfolio of high-quality Australian corporate and government bonds.

Whereas the BetaShares Australian Government Bond ETF aims to track the performance of an index providing investors with exposure to a portfolio of high-quality bonds issued by Australian federal and state governments.

The post How to generate passive income from ASX ETFs appeared first on The Motley Fool Australia.

At the time of writing, the gold miner's shares are up over 2% to $25.86.

Why is the Newcrest share price rising?

There have been a couple of catalysts for today's gain. The first is a rise in the gold price, the other is an update on its proposed takeover by Newmont Corporation (NYSE: NEM).

In respect to the former, the spot gold price climbed overnight after US treasury yields softened, boosting the allure of the precious metal.

This has helped drive other ASX gold shares higher today, which has taken the S&P/ASX All Ords Gold index 1.6% this morning.

Takeover update

Also boosting the Newcrest share price has been news that its proposed takeover by Newmont Corporation has taken a major step forward.

According to an announcement, Newmont stockholders have approved the issuance of shares of Newmont common stock to Newcrest shareholders pursuant to the proposed scheme of arrangement.

This essentially means that they approve the takeover of Newcrest.

So, now it is over to Newcrest shareholders to decide if they want to accept Newmont's offer of 0.400 Newmont shares for each Newcrest share held, as well as a fully franked US$1.10 per share special dividend.

Based on the current Newmont share price, this equates to an offer of US$16.75 per share (A$26.10 per share) plus franking credits.

Newcrest shareholders will be able to vote on the takeover at the scheme meeting in Melbourne on Friday. If they give the deal the thumbs up, that US$1.10 per share fully franked dividend will be paid to them later this month on 27 October.

The post Why is the Newcrest Mining share price having a golden day? appeared first on The Motley Fool Australia.

That's according to Janus Henderson Group CDI (ASX: JHG)'s latest Global Dividend Index.

Sadly, ASX investors might be scratching their heads right about now. If you're among those who didn't notice a substantial increase in your dividend income during the February reporting season, you're not alone.

ASX dividends slump amid surging global payouts

Australia lagged the world when it came to dividend growth last quarter, with ASX shares offering 6.6% less in the way of passive income on a headline basis – just $27.9 billion.

And Janus Henderson previously warned Aussies such a happening could occur.

This time last year the asset manager pointed to "Australia's high level of dividend concentration", saying it leaves the nation dependent on a handful of companies for dividends. Many of those call the mining sector home.

In its latest release, Janus Henderson commented:

The end of the recent mining boom is seeing payouts in the sector normalise, bringing first-quarter cuts.

BHP Group Ltd (ASX: BHP) was to blame for much of the drop in Aussie payouts. The iron ore giant, and ASX's largest company by market cap, slashed its interim dividend by 40%.

Though, the company was still the second-largest dividend payer in the world last quarter – down from the top spot in the prior period.

Fellow mining giants Fortescue Metals Group Limited (ASX: FMG) and Rio Tinto Ltd (ASX: RIO) also cut their recent offerings by 13% and 46% respectively.

How might ASX investors have gotten a slice of growing payouts?

But not all Aussie investors missed out on the global dividend growth. Those boasting geographically diverse portfolios likely benefited.

The 12% lift in dividends around the world last quarter was led by three markets. Emerging markets saw dividends grow 22.5%, Europe (excluding the UK) boasted a whopping 36% of dividend growth, and Japan saw offerings increase 17.7%.

And getting exposure to those regions needn't be difficult. Plenty of ASX exchange-traded funds (ETFs) offer just that.

For instance, an investor keen to get a grip on emerging markets might turn to the Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE).

Another wishing to hold a slice of European markets, without the UK, might find what they're looking for in the Betashares Europe ETF – Currency Hedged (ASX: HEUR).

Finally, ASX ETFs aiming to mirror the performance of the Japanese stock market include the iShares MSCI Japan ETF AUD (ASX: IJP).

Looking for broader exposure to international dividends?

Well, perhaps the Betashares Global Income Leaders ETF (ASX: INCM) might be more to your taste.

The fund tracks 100 high-yielding companies listed outside of Australia.

Of those, 64% are listed in the United States – where dividends grew by 8.3% on a headline basis last quarter to a record US$153.4 billion, Janus Henderson found.

The post Global dividends jumped 12% in the first quarter of 2023. Are you getting your share? appeared first on The Motley Fool Australia.