Monthly Paying Dividend ETFs - What Are They?

2 years ago
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In this video, we will be discussing Dividend-paying exchange-traded funds (ETFs). ETFs have been growing in popularity, especially among investors who look for high yields and more stability from their stocks. Most ETFs pay their dividends quarterly—once every three months. However, the topic of this video is going to be ETFs that offer monthly dividend returns.
Monthly dividend-paying stocks can be more convenient for managing cash flows and help in budgeting with a predictable income stream. This is can be perfect for people who favor income over growth, like business owners who need the extra income to support their business. Further, these financial instruments give greater total returns, if the monthly dividends are reinvested.

Before any investor starts buying those financial instruments, they must do their research and review the ETF for its expenses and risk. While getting dividend income each and every month may sound exciting, the investor is the one who must offset the expenses of the holding against its benefits.

Fund managers sometimes offer high yields that they cannot sustain to attract investors who would otherwise ignore them. It is really important to pay attention to expense ratios, as well. Remember, the less money that goes into a manager’s pocket the better. Some funds may return their high income through the use of leverage which may not suit the risk tolerance of all investors.

DISCLAIMER
This video is not to be considered financial advice. The channel owner is not responsible in any way for future losses! Please do your research!

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