The Only Dividend ETFs To Buy

Monthly Passive Income (High Yield)

Author

Millionaire Syrup
March 23, 2024

The Only Dividend ETFs To Buy

Monthly Passive Income (High Yield)

1. SPHD

The S&P 500 High Dividend Low Volatility ETF is based on an index that measures the performance of the 50 least volatile high dividend-yielding stocks in the S&P 500. This ETF was designed for investors who want to earn income from their stock market investments.

SPHD holds about 52 stocks in total, with top holdings in companies like Altria Group, Kinder Morgan, and AT&T. Over the past 10 years, SPHD has given an average annual return of 9.09%. That means if you had invested $10,000 in this ETF 10 years ago, it would be worth a little over $22,000 today, not including the dividends.

Speaking of dividends, this ETF currently has a dividend yield of around 3.97%. So, not only do you get good investment returns, but you also get a high dividend yield.

2. SRET

The Global X SuperDividend REIT ETF is a fund that invests in the top high-yield REITs globally. REITs are companies that own and manage real estate and must pay out most of their income as dividends. SRET has 28 different REITs, and while they might not be household names, they're solid because they have to give 90% of their taxable income to investors as dividends.

This ETF's dividend yield is super attractive at 7.75%, which is way above average. But, the higher yield also means a higher expense ratio of 0.58%, which is the cost for managing the fund.

3. QYLD
QYLD is an ETF that aims to match the performance of the Cboe NASDAQ-100 BuyWrite V2 Index. It uses covered calls, which are option strategies that can generate extra income in volatile markets. Since it started in 2013, it has had an average annual return of about 5.23%. So if you invested $10,000 back then, you would have around $16,000 now. It holds popular stocks like Apple and Google, and it focuses on using option strategies to generate income.

4. JEPI

JEPI, or the JP Morgan Equity Premium Income ETF, is an actively managed ETF that invests in U.S. large-cap stocks and Equity Linked Notes. Its goal is to provide monthly dividend income and exposure to the stock market with less volatility.

How does it do this? Well, it hand-selects stocks from the S&P 500 Index using a process that identifies value stocks with favorable risk and return characteristics.

Currently, JEPI holds 121 stocks, with top holdings in UnitedHealth, Hershey, ABV, Progressive, and more. Since its inception, JEPI has had an impressive average annual return of about 9.89%. So, if you had invested $10,000 a few years ago, it would be worth around $12,500 today. Keep in mind that JEPI is relatively new, so if we look at similar ETFs with a longer time horizon, the returns would be even more impressive.

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