Part 3/7:
To successfully create an income portfolio that meets the $1,000 monthly target, three primary criteria must be satisfied:
High Average Dividend Yield: The selected ETFs must provide a consistently high yield to generate substantial income.
Stable Net Asset Value: It's crucial to avoid ETFs that offer high yields while sacrificing their NAV, as indicated by yield on cost charts. A rising trend on such a chart typically indicates a dividend trap.
Potential for Capital Appreciation: While high-income dividends are significant, ETFs should also have the capability to achieve some level of capital growth to maintain NAV.