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Dividend-paying exchange-traded funds (ETFs) have been growing in popularity, especially among investors looking for high yields and more stability in their portfolios. As with stocks and many mutual funds, most ETFs pay their dividends quarterly—once every three months.
But some ETFs offer monthly dividends, which can be more convenient for managing cash flows, and the predictable income stream can help with budgeting. Further, these products give greater total returns if the monthly dividends are reinvested. While many ETFs pay out regular dividends, we look at just eight of them here.
Key Takeaways
- For investors looking for income from their holdings, regular dividend payments are key.
- While many dividend stocks pay quarterly or semi-annual dividends, some ETFs manage to pay out dividends on a monthly basis.
- Here, we look at eight such ETFs that the income investor may want to consider for their portfolio.
- The best online brokers provide ways to open an ETF and start investing.
Range of Choices and Risks
Luckily, there are a plethora of monthly dividend exchange-traded funds offered by the major firms, including State Street Global Advisors, Vanguard Group, and BlackRock. However, there are also smaller firms such as Global X that have increased their presence in the ETF arena. These investment products have become nearly household names and include the popular Spider (SPDR) and iShares products.
Before any investor falls head-over-heels in love with these products, they must do their due diligence and review any potential ETF for its expenses and risk. While getting dividend income every month may sound appealing, the investor must offset the expenses of the holding against its benefits.
Fund managers sometimes offer high double-digit yields that they cannot sustain in order to attract investors who would otherwise ignore them. It is important to pay attention to expense ratios, as well. Remember, the less money that goes into a manager’s pocket the better. Some funds may return their high income through the use of leverage which may not suit the risk tolerance of all investors.
Note
The following list of exchange-traded funds is not in any particular order and is offered only as an example of some funds that fall into the category of monthly-dividend paying ETFs.
1. Global X SuperDividend ETF (SDIV)
- Net Assets as of Aug 13, 2025: $942.77 million
- Expense Ratio: 0.58%
- Distribution Yield (12 mo.): 9.84%
- Inception Date: June 8, 2011
- Price as of Aug. 13, 2025: $23.62
The Global X SuperDividend (SDIV) fund tracks an index of 100 equally weighted companies that rank among the highest-dividend payers around the world.
The fund includes common stocks, real estate investment trusts (REITs), and master limited partnerships (MLPs) that must combine top returns with lower-than-average volatility to be included in the index.
Some of the main holdings of the fund are:
- Bright Smart
- SES
- BW LPG LTD
- Marfrig Global Foods SA
- Ardagh Metal Packaging SA
2. Global X SuperDividend U.S. ETF (DIV)
- Net Assets as of Aug. 13, 2025: $653.65 million
- Expense Ratio: 0.45%
- Distribution Yield (12 mo.): 6.73%
- Inception Date: March 11, 2013
- Price as of Aug. 13, 2025: $17.74
Established in 2013, the Global X U.S. SuperDividend (DIV) fund focuses on a basket of low-volatility, high-yielding securities. The objective is to track the performance of 50 equally weighted common stocks, MLPs, and REITs within the U.S.
Securities listed in the index are among the highest-yielding in the United States, and they have lower relative volatility than the market. It pairs very nicely with SDVI for investors who want a truly global grip on high-yielding equities.
Top holdings in the fund include:
- Ardagh Metal Packaging SA
- Global Ship-CL A
- Altria Group Inc
- Alexander’s Inc
- Omega Healthcare
3. Invesco S&P 500 High Dividend Low Volatility ETF (SPHD)
- Net Assets as of Aug. 14, 2025: $3.08 billion
- Expense Ratio: 0.30%
- Distribution Yield (12 mo.): 3.42%
- Inception Date: October 18, 2012
- Price as of Aug. 13, 2025: $49.01
The Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) looks for stocks that pay high dividends and offer low volatility. It invests 90% of its assets in the common stocks of companies listed in the S&P 500 Low Volatility High Dividend Index. The fund is concentrated in consumer defense and utilities.
Holdings include:
- Altria Group Inc
- Pfizer Inc
- Conagra Brands Inc
- Alexandria Real Estate Equities Inc
- Verizon Communications Inc
4. WisdomTree U.S. High Dividend Fund (DHS)
- Net Assets as of Aug. 13, 2025: $1.27 billion
- Expense Ratio: 0.38%
- Distribution Yield (12 mo.): 2.46%
- Inception Date: June 16, 2006
- Price as of Aug. 13, 2025: $99.812
The WisdomTree U.S. High Dividend Fund (DHS) mimics the WisdomTree High Dividend Index. This fundamentally weighted index features companies ranked by dividend yield.
The fund’s holdings are well diversified among sectors such as real estate, healthcare, utilities, IT, and consumer staples. Top holdings include:
- Johnson & Johnson
- Philip Morris International Inc
- AbbVie Inc
- Exxon Mobil Corp
- Altria Group Inc
5. Invesco Preferred ETF (PGX)
- Net Assets as of Aug. 14, 2025: $3.83 billion
- Expense Ratio: 0.50%
- Distribution Yield (12 mo.): 5.93%
- Inception Date: January 31, 2008
- Price as of Aug. 13, 2025: $11.45
The Invesco Preferred Fund (PGX) is another preferred stock ETF that delivers on yield. PGX’s objective is to replicate the performance and yield of the ICE BofAML Core Plus Fixed Rate Preferred Securities Index. Its portfolio holds more than 200 preferred stocks with a heavy weighting towards the financial sector.
Some of the top investments include:
- JPMorgan Chase & Co
- Bank of America Corp
- AT&T Inc
- Capital One Financial Corp
- Wells Fargo & Co
6. Invesco KBW High Dividend Yield Financial ETF (KBWD)
- Net Assets as of Aug. 14, 2025: $411.68 million
- Expense Ratio: 2.02%
- Distribution Yield (12 mo.): 12.51%
- Inception Date: December 2, 2010
- Price as of Aug. 13, 2025: $14.17
Based on one of the prestigious Keefe, Bruyette & Woods Nasdaq indexes, the Invesco KBW High Dividend Yield Financial Portfolio ETF (KBWD) fund is heavily weighted (at least 90%) towards publicly held financial companies, which should perform better in a rising interest rate environment.
Holdings include:
- Orchid Island Capital
- Invesco Mortgage Capital
- Dynex Capital Inc
- AGNC Investment Corp
- ARMOUR Residential REIT Inc
7. iShares Preferred and Income Securities ETF (PFF)
- Net Assets as of Aug. 14, 2025: $14.33 billion
- Expense Ratio: 0.45%
- Distribution Yield (12 mo.): 6.16%
- Inception Date: March 26, 2007
- Price as of Aug. 13, 2025: $31.49
The iShares Preferred and Income Securities ETF (PFF) is a viable alternative for investors seeking high yields. PFF aims to mirror the performance and yield of the ICE Exchange-Listed Preferred & Hybrid Securities Index. The portfolio is well-diversified; however, it does tend to favor banks, diversified financials, and utilities. Some of the main holdings include:
- Boeing
- Wells Fargo & Co
- Citigroup Inc
- Apollo Global Management Inc
- Hewlett Packard Enterprise
8. SPDR Dow Jones Industrial Average ETF Trust (DIA)
- Net Assets as of Aug. 14, 2025: $39.52 billion
- Expense Ratio: 0.16%
- Distribution Yield (12 mo.): 1.66%
- Inception Date: January 14, 1998
- Price as of Aug. 13, 2025: $449.65
The SPDR Dow Jones Industrial Average ETF (DIA) does not offer the highest yield, but investors who prefer some capital appreciation potential with their income might find its portfolio attractive. Launched in January 1998 (making it one of the oldest ETFs still standing), the fund is one of the few to play the Dow Jones Industrial Average (DJIA) directly—itself the grandpa of stock indexes, composed of 30 of the bluest blue chip companies.
Its holdings include:
- Goldman Sachs Group Inc
- Microsoft Corp
- Home Depot Inc
- Sherwin Williams Co
- VISA Inc
Frequently Asked Questions (FAQs)
What Are Some Other High-Yielding Dividend ETFs?
While they may not pay monthly dividends, the following ETFs do tend to have above-average distribution yields. Some of the most popular dividend ETFs include:
Which ETF Has the Highest Dividend Yield?
The dividend yield of an ETF will depend on its share price; a lower share price, given the same dividend payment, will equal a higher yield.
As of August 2025, the ETF with the greatest dividend yield is the YieldMax Short COIN Option Income Strategy ETF, with a yield of 339.30%.
How Are ETF Dividends Taxed?
ETF dividends are taxed similarly to how dividends on stocks are taxed; an important distinction is whether they are qualified or non-qualified dividends. Qualified dividends are taxed as capital gains, which are taxed at either 0%, 15%, or 20%, depending on the holder’s income, and these are generally more beneficial. To qualify, the ETF must be held for more than 60 days before the dividend is issued. Non-qualified dividends are taxed as ordinary income; the tax rate will depend on the holder’s income tax bracket.
The Bottom Line
High-dividend ETFs offer an affordable and easy way to add an extra stream of income to your portfolio. These types of ETFs are easy to invest in and suitable for all investors, such as those looking to diversify their portfolios or retirees looking for additional cash flow.
With any investment, it is critical to do thorough research beforehand to determine if the investment is suitable for your risk tolerance and investment time horizon. If ever in doubt, reach out to a financial advisor to determine whether an investment is right for you.
