Deep Seek

ETFs that pay high monthly dividends

If you’re looking for ETFs that pay high monthly dividends, here are some popular options across different categories (equity, fixed income, and alternative income strategies):

1. Equity ETFs (Stocks)

These ETFs invest in dividend-paying stocks, often focusing on high-yield sectors like REITs, utilities, or covered call strategies.

  • JEPI (JPMorgan Equity Premium Income ETF)
    • Yield: ~7-9%
    • Strategy: Uses covered calls on S&P 500 stocks to generate income.
    • Pays: Monthly
  • DIVO (Amplify CWP Enhanced Dividend Income ETF)
    • Yield: ~5-6%
    • Strategy: Active management with dividend growth stocks + covered calls.
    • Pays: Monthly
  • SPYD (SPDR Portfolio S&P 500 High Dividend ETF)
    • Yield: ~4-5%
    • Strategy: Tracks high-dividend S&P 500 stocks.
    • Pays: Monthly
  • SRET (Global X SuperDividend REIT ETF)
    • Yield: ~8-10%
    • Strategy: Focuses on high-yield global REITs.
    • Pays: Monthly

2. Fixed Income ETFs (Bonds)

These ETFs invest in bonds, preferred stocks, or other debt instruments for steady income.

  • PFF (iShares Preferred & Income Securities ETF)
    • Yield: ~6-7%
    • Strategy: Invests in investment-grade preferred stocks.
    • Pays: Monthly
  • HYG (iShares iBoxx $ High Yield Corporate Bond ETF)
    • Yield: ~5-6%
    • Strategy: High-yield corporate bonds.
    • Pays: Monthly
  • BKLN (Invesco Senior Loan ETF)
    • Yield: ~7-8%
    • Strategy: Floating-rate bank loans (less interest rate risk).
    • Pays: Monthly

3. Alternative Income ETFs (Covered Calls, MLPs, etc.)

These use options strategies or invest in high-yield alternative assets.

  • QYLD (Global X NASDAQ 100 Covered Call ETF)
    • Yield: ~10-12%
    • Strategy: Covered calls on the NASDAQ 100 (high income but limited upside).
    • Pays: Monthly
  • XYLD (Global X S&P 500 Covered Call ETF)
    • Yield: ~9-11%
    • Strategy: Covered calls on the S&P 500.
    • Pays: Monthly
  • AMLP (Alerian MLP ETF)
    • Yield: ~7-9%
    • Strategy: Focuses on energy MLPs (tax implications apply).
    • Pays: Monthly

Key Considerations:

  • Dividend sustainability: Some high-yield ETFs (like QYLD, SRET) may have lower growth potential or principal erosion over time.
  • Tax implications: REITs and MLPs generate non-qualified dividends (taxed as ordinary income).
  • Covered call ETFs (JEPI, QYLD, XYLD): Provide high income but may lag in strong bull markets.