5 Top Stock ETFs With Monthly Dividends


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Income investors are typically comforted by the reliability of monthly dividends. This consistent stream of payments is common among bond funds as a steady source of passive income. However, there are much longer gaps in the cash flow cycle from the majority of stock-focused ETFs that pay quarterly dividends. This creates a lumpy pattern over the course of a calendar year that may be inconsistent with fixed budgets and other financial projections. 

Fortunately, there are a variety of stock-focused ETFs that have set out to solve this issue by declaring smaller monthly payments rather than larger quarterly deposits.This creates a smoother flow of income and allows for easier forecasting of spendable portfolio yield. 

The following list of funds are some of the larger and more established offerings in this group.

SPDR Dow Jones Industrial Average ETF (DIA)

DIA tracks the famous Dow Jones Industrial Average, which been in existence for over 130 years.This historic index is made up of 30 mega-cap stocks from virtually every sector of the economy and is still considered a major domestic benchmark. 

Interestingly enough, DIA is constructed using a price-weighted asset allocation structure.This gives the largest share of capital to the stocks with the largest share prices rather than market capitalization.Top holdings in DIA currently include 3M Company (MMM) and Goldman Sachs Group Inc (GS).

DIA has $11.8 billion in total assets and charges an expense ratio of just 0.17%. This low-cost exchange-traded fund offers a 30-day SEC yield of 2.43% and income is paid monthly to shareholders.

PowerShares S&P 500 Low Volatility Portfolio (SPLV)

Another popular option for conservative stock investors to contemplate is SPLV. This unique ETF screens for 100 stocks within the S&P 500 Index with the lowest volatility over the preceding 12-months. 

The goal is to minimize downside relative to the broader market by selecting stocks with a historical penchant for reduced price fluctuations. Each of the final constituents are then given an equal share of fund assets and rebalanced on a quarterly basis. 

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Chee Hin Teh 4 years ago Member's comment

thank for sharing