Four ETFs for Monthly Dividend Hunters
Only a small number of ETFs in the vast ETF universe pay dividends. Here are four of them.
Oddly enough, the universe of ETFs that pay dividends on a monthly basis 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.
1. Global X Super Dividend ETF (SDIV): The Global X Super Dividend is just six weeks shy of its first birthday, and in those 10 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 equal-weight approach could prove beneficial going forward.
SDIV is international in scope as the US accounts for less than 34% of the fund's weight with Australia, the UK and Canada figuring prominently in the fund's mix. Global X confirmed for Benzinga that SDIV does pay a monthly dividend.
2. iShares Barclays 1-3 Year Credit Bond ETF (CSJ): 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 high-grade bonds.
3. AdvisorShares Madrona Global Bond ETF (FWDB): 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 its holdings are other bond ETFs. The iShares iBoxx $ Investment Grade Corp Bond ETF (LQD), the Vanguard Mortgage-Backed Securities Index ETF (VMBS), and the iShares iBoxx $ High Yield Corporate ETF (HYG) combine for over 41% of FWDB's weight, and yes, the fund pays its dividends monthly.
4. PowerShares Emerging Markets Sovereign Debt Portfolio (PCY): A prime example of
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.
Editor's Note: This content was originally published on Benzinga.com by The ETF Professor.
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