hi I'm Jimmy in this video I'm gonna walk through my top five dividend ETFs
that pay monthly dividends now I was surprised to see how many monthly
dividend ETFs I actually found I found over 400 of them so I'm gonna try to
diversify this particular top 5 monthly dividend ETF list and hopefully that can
get us closer to our personal goal of financial freedom as you can imagine I
found a wide range of interesting monthly dividend ETFs
some have dividend yields as high as 9 or 10% but many of those had smaller
amounts of money in the ETF and then there were ETFs that had a lot more
money in them but smaller dividend yields so I'm actually gonna break I'm
actually gonna do two different videos this video is going to focus on the
group with more assets in each of the ETFs and they generally range from with
dividend yields from somewhere between 3% to let's say about 6% and then I
think it's smart to put together another video that has less assets in them but
much higher dividend notes if that's something you'd be interested in in sync
please let me know in the comments below okay so let's jump in
now our first monthly dividend ETF is the Vanguard intermediate term corporate
bond ETF ticker symbol VCIT this ETF has a dividend yield of about 3.3
percent this is a small yield on our list then they have assets of a bit more
than 27 billion dollars and then they have a fee of just 5 basis points so
what this ETF does is they focus on buying corporate bonds that have
maturity from somewhere between five and ten years away they invest in bonds from
companies like CVS or Bank of America AbbVie Broadcom Microsoft the list goes on
and on they have more than 1,700 different bonds in their ETF so it's
fairly well diversified and then when we look at their dividend history what we
could see that there did their dividend history is fairly decent they've paid
consistently most of the time above 20 cents per month for the past few years
so I think this is a decent medium-term bond etf that could help diversify many
of our portfolios okay moving along next up on the monthly dividend ETF list is
the S&P 500 High Dividend low volatility ETF ticker symbol SPHD
their dividend yield is about 4.2 percent they have assets a bit under 4
billion dollars and they have a fee of about 30 basis points so basically what
this ETF does is they take the 75 highest dividend paying stocks from the
S&P 500 and then they narrow that des that list down further by taking the top
50 of those companies that have the lowest volatility then they weigh them
according to their dividend yield which is a bit unusual most companies most
ETFs if they're going to weight the companies or the holdings usually do it
by market cap not dividend yield so it's somewhat interesting from that
perspective once again this is a monthly dividend ETF so when we look at their
dividend history what we can see that it's been fairly consistent over the
past few years now this ETF can be an interesting way to access some of the
top companies since they have companies like AT&T and Verizon
they have Exxon Mobil and Chevron IBM UPS General Mills Gilead and the list
goes on and on they have a like I said 50 companies in there so they're fairly
well diversified with all SP 500 companies okay our next monthly dividend
ETF is the Invesco high-yield equity ETF ticker symbol PEY they have a
dividend yield of a bit less than 4% and they have a bit under a billion dollars
as far as assets under management and they have an expense ratio of about 54
basis points so what PEY does is they hold the 50 highest dividend yielding
stocks that are from the Nasdaq and they had to have increased their dividend for
at least 10 consecutive years so this ETF is somewhat like the dividend
aristocrat cetf which where they look for companies that have consistently
increased their dividends but one advantage of this particular ETF is that
they pay their dividends monthly unlike NOBL which is a different aristocrats
ETF they pay theirs quarterly so if monthly is what we're after this could
be a good addition when we look at their dividend history what we can see that
they've been consistent enough in fact they've grown their dividend a bit more
than I would have expected over the past year or so I
the way this could be a good thing for dividend investors good ETF to watch if
we're interested in monthly dividends okay next up we have an ETF that focuses
on emerging markets where they buy mostly government bonds this is the
emerging market bond ETF ticker symbol EMB they have a solid dividend yield of
about four and a half percent they have a bit more than fifteen billion dollars
in assets and they have a fee of about thirty nine basis points now like I said
what they do is they invest mostly in government bonds it's that over eighty
percent of their bonds are government bonds they focus on developing countries
there are three largest countries I believe were Mexico Indonesia and Turkey
and we look at their dividend history well outside of what appears to be a
special dividend of $1.29 towards the end of 2018
well it's been fairly consistent now I do want to bring out one point that I
think is worth noting see this gap right here it's a little bit wider in between
the lines and then that one there well that's when what this particular ETF
does and I've noticed a few monthly dividend etf's do this and that is that
they actually pay their January dividend at the end of December so you end up
with two in December and none in January and then one in early February they
still count this as a month and dividend but I just wanted to point it out a few
monthly etf monthly dividend ETF stew this okay next up we have a dividend ETF
that focuses on preferred stocks called the Invesco financial preferred ETF
ticker symbol PGF they have a dividend yield of about 5.1 percent and they have
assets of a bit over a billion and a half dollars and they've a fee of about
62 or 63 basis points now I recognize that this fee is a bit on the high side
as far as expense ratios go but anyone who knows me knows that
although I prefer lower fees who doesn't well I'm okay with the fee if the fund
serves a particular purpose in our portfolio so in the case of this fund
well clearly they invest primarily in preferred shares of financial companies
and with the dividend yield of a bit more than five percent well for me I
might say something like okay I'm getting let's say 5.1 percent as far as
the dividend goes is that worth let's say a bit more than half a percent for a
fee so at a four-and-a-half percent net
dividend to me after we cover the fees now it doesn't exactly work that way I
just want to walk through one way I think about it so for looking for
exposure to the financial sector or even preferred shares well this might be a
good way to still get our monthly dividends and get exposure to this
particular market and perhaps the fee is worth it it's it depends on each of our
portfolios well when we look at their dividend history well we can see that
they've been fairly steady which is a good sign for us if that's all we're
after and if that makes sense for each of our individual portfolios now I know
I've mentioned a few times in this video the this ETF
or another ETF could be a good addition to our portfolio generally what I'm
looking for is good ways to diversify our portfolio so if the market crashes
hopefully not all of the holdings not all the ETFs or stocks that we own go
down the same way maybe some even go up now if you're curious to learn more
about how to diversify portfolio actually did a video on that exact topic
that could be a good next video to watch if you're interested there's a link here
there's a link in the description below and I really want to thank you for stick
with me all the way down to the video I really appreciate it thanks and I'll see
in the next video