Market Overview

4 ETFs For Monthly Dividend Hunters (SDIV, PCY, CSJ)

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For some income investors, quarterly or annual dividends just aren't enough. They want their dividends and they want them now. Or they want them on a more frequent basis, say monthly. There are hundreds of stocks that pay monthly dividends. Throw in the many closed-end funds that do so as well and the number of monthly dividend payers grows even larger.

Oddly enough, the universe of ETFs that pay dividends on a monthly is still sparsely populated even though the number of dividend ETFs on the market is robust and continues to grow.

Those looking for ETFs with a monthly payout have to do some homework, but we'll alleviate the burden here with a few ETFs that can boost your monthly cash flow.

Global X Super Dividend ETF (NYSE: SDIV) The Global X Super Dividend is just six weeks shy of its first birthday and in those ten months of trading, the fund has proven its mettle as a legitimate income play. SDIV's current distribution yield is almost 12.3%, according to Global X data, and the fund's equal-weight approach could prove beneficial going forward.

SDIV is international in scope as the U.S. accounts for less than 34% of the fund's weight with Australia, the U.K. and Canada figuring prominently in the fund's mix. Global X confirmed for Benzinga that SDIV does pay a monthly dividend.

iShares Barclays 1-3 Year Credit Bond ETF (NYSE: CSJ) Several of the monthly dividend ETF payers are bond funds and CSJ is one of them. The yield isn't exciting at just 1.6%, but CSJ is appealing to conservative investors because it's a large ($9.37 billion in AUM), cheap (0.2% expense ratio) fund that can help fill a fixed income void within a portfolio. Nearly all of CSJ's holdings are high-grade bonds.

AdvisorShares Madrona Global Bond ETF (NYSE: FWDB) FWDB, which invests in at least 12 global bond classes that cover the entire global investable bond universe, is akin to a bond fund of funds because it's holdings are other bond ETFs. The iShares iBoxx $ Investment Grade Corp Bond ETF (NYSE: LQD), the Vanguard Mortgage-Backed Securities Index ETF (NYSE: VMBS) and the iShares iBoxx $ High Yield Corporate ETF (NYSE: HYG) combine for over 41% of FWDB's weight and yes, the fund pays its dividends monthly.

PowerShares Emerging Markets Sovereign Debt Portfolio (NYSE: PCY) A prime example of the popularity of emerging markets bonds ETFs PCY currently yields 5.3% and is a monthly dividend payer.

PCY, which will turn five years old later this year, is home to 64 holdings and over $1.7 billion in AUM. Top country allocations currently include Peru, Brazil, Pakistan, Qatar, Poland and the Philippines.

For more on dividend ETFs, please click HERE.

Posted-In: Long Ideas News Bonds Broad U.S. Equity ETFs Short Ideas Dividends Dividends Specialty ETFs Best of Benzinga

 

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