Top 3 ETFs That Pay A Dividend Every Single Month | Seeking Alpha

Top 3 ETFs That Pay A Dividend Every Single Month | Seeking Alpha



This is a great article about investing in dividend ETFs which pay on a monthly basis.  One of the stocks that the author mentioned was SDIV, and I happily own that stock myself.  The yield is almost 6% annually, you get paid monthly, and SDIV has gained almost 15% in the past year in its stock price.



The author also discusses the value of compounding your money over time.  You can start with just investing $5,000 and if you add $200 per month and gain just 7% each year, you would have over $117,000 in 20 years.  The author actually used a different 7% savings scenario, but I followed his Compound Interest Calculator link to a website where I entered values that would apply to me.  Of course, I am expecting to gain 15% or more with my current stock investing, and using 15% as my annual gain over 20 years would net me more than $327,000.  So, the average annual "percent of gain" matters a lot in the compounding.



The author mentioned DIA, the Dow Jones ETF, as one of his other picks.  It only pays 2% annually, but you will get a higher capital gain over SDIV since the Dow Jones stocks are the top blue chip stocks in the market.  You will also have the maximum safety here, and the Dow stocks are spread among several different sectors such as industrials, information technology, financials, healthcare, energy, and other areas.



The third excellent ETF that the author mentioned was HDV, an iShares high dividend ETF.  The stock only pays around 3% in dividends annually, but the capital gain over the past three years has been more than 16%.  The ETF also contains quality companies like AT&T, JNJ, CVX, PG, and Pfizer.  So, these three ETFs are all very good picks, and you get important diversification along with dividends and capital gains.