Monthly Dividend Payouts
Do you want to know what’s more boring than ETFs? High-yield dividend ETFs! If you’re looking to add high risk gain potential to your portfolio, you’re in the wrong place. If you are interested in adding some investments that will add monthly dividend income to your portfolio then keep on reading. I’m not recommending these exchange trade funds to you or telling you that you should invest in them. I’m merely telling you these are three ETFs that I personally like. I like then because they constantly rebalance themselves to give investors the best possible return and risk management. They’re also a great way to diversify.
3. Powershares KBWD High Dividend Yield-KBWD
Price per Share: $22.00
If you want American, small cap financial stocks in your portfolio then KBWD is your ETF. It consists of 46% small cap stocks and 85% financial companies.
KBWD has stayed in a safe range the past three years of $19-25 per share. An 8.6% yield makes this a very attractive monthly dividend play. KBWD has paid out a dividend every month for the past 12 months but the cents per share has fluctuated between 13 cents and 20 cents per share. The more small caps you have in an ETF, the more this fluctuating will happen. Currently they’re at 16 cents per share. To give you a good example; if you have $10,000 currently invested in this ETF you would be receiving about $75 this month in dividends. I like this as part of my dividend portfolio but not my whole portfolio.
2. Global X Superdividend ETF-SDIV
Price per Share: $17.39
With Asian markets getting beat up the past year, you can get this ETF at a nice bargain. Asian stocks consist of 23% of SDIV’s portfolio. SDIV stood around $22 per share in 2018. This is a nice play if you want some global and real estate exposure in your arsenal.
Although the share price has been down, SDIV’s dividend increased two straight years. SDIV has paid a dividend every month for the past 12 months. SDIV is a good source of real estate. They account for 38% of the fund, which is the majority. Next is financial at 15%. The fund is 52% small cap stocks.
This is a good dividend investment to have during a recession because REITs tend to keep their dividends pretty consistent. SDIV pays .12 cents per share, meaning if you have $10,000 invested you would have 588 shares and that would pay you $70 the first month before all the dividend re-investing and compounding. Not too shabby!
3. Global X Superdividend ETF–DIV
Price per Share: 23.28
DIV is as steady as they get for dividend ETFs. Don’t expect any upside with the price per share as they have stayed in about a three dollar range the past year. They have paid out a dividend every month for the past 12 months and have had a gradual climb from 12 cents per share to now 16 cents per share. That’s a 7.72% yield. DIV is 57% small cap and consists of a well-balanced group of stocks. They have a nice mix of financials, consumer staples and industrial. $10k in this ETF would pay you $66 this month.
Today’s savings accounts pay just about nothing in interest. These three ETFs are great examples that there are alternatives out there. I hope this blog was helpful.