For some income investors, quarterly or annual dividends just
aren't enough. They want their dividends and they want them now.
Or they want them on a more frequent basis, say monthly. There
are hundreds of stocks that pay monthly dividends. Throw in the
many closed-end funds that do so as well and the number of
monthly dividend payers grows even larger.
Oddly enough, the universe of ETFs that pay dividends on a
monthly is still sparsely populated even though the number of
dividend ETFs on the market
is robust and continues to grow.
Those looking for ETFs with a monthly payout have to do some
homework, but we'll alleviate the burden here with a few ETFs
that can boost your monthly cash flow.
Global X Super Dividend ETF (NYSE:
The Global X Super Dividend is just six weeks shy of its first
birthday and in those ten months of trading, the fund has proven
its mettle as a legitimate income play. SDIV's current
distribution yield is almost 12.3%, according to Global X data,
and the fund's
could prove beneficial going forward.
SDIV is international in scope as the U.S. accounts for less
than 34% of the fund's weight with Australia, the U.K. and Canada
figuring prominently in the fund's mix. Global X confirmed for
Benzinga that SDIV does pay a monthly dividend.
iShares Barclays 1-3 Year Credit Bond ETF (NYSE:
Several of the monthly dividend ETF payers are bond funds and
CSJ is one of them
. The yield isn't exciting at just 1.6%, but CSJ is appealing to
conservative investors because it's a large ($9.37 billion in
AUM), cheap (0.2% expense ratio) fund that can help fill a fixed
income void within a portfolio. Nearly all of CSJ's holdings are
AdvisorShares Madrona Global Bond ETF (NYSE:
FWDB, which invests in at least 12 global bond classes that cover
the entire global investable bond universe, is akin to a bond
fund of funds because it's holdings are other bond ETFs. The
iShares iBoxx $ Investment Grade Corp Bond ETF (NYSE:
), the Vanguard Mortgage-Backed Securities Index ETF (NYSE:
) and the iShares iBoxx $ High Yield Corporate ETF (NYSE:
) combine for over 41% of FWDB's weight and yes, the fund pays
its dividends monthly.
PowerShares Emerging Markets Sovereign Debt Portfolio
A prime example of the
popularity of emerging markets bonds ETFs
PCY currently yields 5.3% and is a monthly dividend payer.
PCY, which will turn five years old later this year, is home
to 64 holdings and over $1.7 billion in AUM. Top country
allocations currently include Peru, Brazil, Pakistan, Qatar,
Poland and the Philippines.
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