5 Best Monthly Dividend ETFs to Pay Your Bills

You know we love us some monthly dividend stocks here on the channel and have used several to pay the bills, everything from paying the wireless bill making the car payment …but there are big problems with monthly dividend payers that most investors just don’t realize…problems that can leave you without money in the bank when you most need it!

Want MORE Dividends? Don’t miss these other dividend videos!

In this video, I’ll reveal the five best monthly dividend exchange traded funds, ETFs that will consistently cash flow to help you pay the bills . I’ll show you those problems in monthly dividend stocks and how to pick which monthly ETF is right for your cash needs. Stick around and I’ll also take you step-by-step to creating your own monthly dividend ETF from your favorite dividend stocks, whether they pay monthly or not!

You see, most dividend stocks only pay every three months so investors see monthly paying stocks, get dollar signs in their eyes and rush to get that monthly cash flow. The problem is, there are three hidden traps in monthly dividend stocks that most investors have no idea about until they look at they can’t pay the bills because that monthly check never came.

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The first trap here is a dividend yield so high that it can’t possibly be sustained, a dividend that lures investors to buy just before the ultimate rug pull. Avoiding this dividend sustainability trap is as simple as following how much the company is paying out as a percentage of earnings, a measure called the payout ratio, and comparing that to similar companies to make sure everything is still within reason.

Related to that is another dividend trap common in many high yield stocks, the constantly falling payment amount. Now it’s pretty common for high yield dividend stocks to see cuts every once in a while. What you want to avoid just by looking at the history of payments though is that constant cut every year that eats away at your cash flow!

The final dividend risk before we get back to our list is a dividend that jumps up and down with the economy, an unpredictable dividend. This is more common in the real estate stocks, especially the mortgage REITs like this, and the BDCs that pay out nearly all their profits as dividends from one year to the next. When the economy changes and hits earnings for these companies, it’s natural that the dividend will have to fall as well. This is one you can’t avoid for some of these stocks but you can understand it and be ready for it by investing in dividend ETFs as well.

#dividendstocks #dividendinvesting #dividends

Joseph Hogue, CFA spent nearly a decade as an investment analyst for institutional firms and banks. He now helps people understand their financial lives through debt payoff strategies, investing and ways to save more money. He has appeared on Bloomberg and on sites like CNBC and Morningstar. He holds the Chartered Financial Analyst (CFA) designation and is a veteran of the Marine Corps.

[josephhogue]

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[markpierce]

I like this guy. YouTubers are always too hyped and over-the-top energetic. Joseph always sounds like he’s trying to not wake the sleeping baby. Love it. Learning a bunch. Thanks, boss.

[freddydee]

Thank you again.
I can't believe these videos are free.
You've helped me so much this year.
I'm 60 and heavily invested in high-quality dividend stocks thanks to you.

[willmallory]

Excellent video Brother. Monthly payments is what I'm looking for to put in a Living Trust for my children. Something to pay them long after I'm gone.

[JohnJames-mgfc]

Wow! One of the best explained videos on dividends. Thank you

[richardthorne]

DIVO and JEPI are my favorite CC ETFs but I don’t like those covered call ETFs that sell at the money such as QYLD, XLYD. No capital appreciation with those and at least with JEPI you will get some b/c they sell out of the money. DIVO is the king for covered calls with capital appreciation potential absolutely love it.

[mrmacc]

Great free well spoken advice, thank you so much these videos are really helpful

[hurricanelopez]

Best financial content on YouTube is the bow tie. Tons of great information and real data in every video. Many thanks

[rudygoofysrh]

Great work. Excellent explanation for creating your own best ETF.
Bow tie nation all day, everyday. 💯

[joycejohnson]

Just found your channel. This was great information. Became a subscriber.

[charisseeglover]

Awesome information thanks for sharing your knowledge!!!

[dmullinsTWM]

If one learns best when the teacher is knowledgeable and able to pleasantly convey such, then it explains why I go to this channel every time.

[mikebrowner]

SDIV is down 67% since it’s inception. I understand the dividend is decent, but this is a dividend trap ETF.

[BenWatkinsGtr]

Thanks for all you do, Joseph! Not to be "that guy", but was JEPI maybe a legacy equity from another ticker? We're talking about it outperforming on a 5-year basis, but I can only find historical data and chart info back to March 2020.

[Tommygunz]

My issue what percent should one in invest in each these when making a pie? Any suggestions

[moneymanfernando]

Thanks for the video. I love and own JEPI, DIVO and SCHD. I am looking into JEPQ.

[geneschwarzrock]

Nice video, good advice, but JEPI doesn't go back 5 yr. It's only been around since May 2020.
I like CEFS over YYY for a fund-of-funds play. Higher reward for same risk, per Morningstar.

[WarrenBuffettDividend]

Very interesting video.. taking notes..

[lailatov]

How many shares of those dividends need to have in your opinion?

[TheAffirmationSpot]

Thank you for your videos! Curious on your final pick. SDIV. I’ve held a significant amount with them for a while. How do you see their recent reverse split impacting yields?