5 Monthly HIGH Dividend ETFs (5%+) ETFs that Pay Monthly Dividends | Summary and Q&A

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February 23, 2020
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Learn to Invest - Investors Grow
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5 Monthly HIGH Dividend ETFs (5%+) ETFs that Pay Monthly Dividends

TL;DR

This video discusses five high-yield monthly dividend ETFs, highlighting their dividend yields, fees, and holdings.

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Key Insights

  • 😘 Smaller ETFs may come with higher fees and potentially face closure due to low assets.
  • ✋ High-yield monthly dividend ETFs are popular for generating regular income.
  • ✋ Investing in high-yield bonds through an ETF like HYLD can provide a diversified portfolio and a higher dividend yield.
  • 🚕 REIT ETFs like SRET offer tax advantages and can provide a reliable income stream.

Transcript

hi I'm Jimmy in this video I'm gonna walk through five of my favorite high yielding dividend ETFs that pay a monthly dividend now this video is actually the second video where I look at monthly dividend ETFs in the last video I focused on larger ETFs in that they had more money in them and that they also tended to pay a slightly lower dividend yiel... Read More

Questions & Answers

Q: How do smaller ETFs get shut down?

Smaller ETFs may get shut down if the fund manager decides to close it due to the low assets and fees they generate. In such cases, investors receive their fair value, which is usually close to the ETF's price at the time of liquidation.

Q: What makes HYLD different from other ETFs?

HYLD invests in high-yield bonds, which offer a higher dividend yield. However, it has higher fees compared to other ETFs. Investors may choose HYLD for diversification but should be aware of the higher expenses.

Q: What tax advantages do REITs have?

REITs don't pay corporate income taxes as long as they distribute most of their profits as dividends. This allows REIT ETFs like SRET to offer higher dividend yields, as seen by its nearly 8% yield.

Q: How does QYLD generate a high dividend yield?

QYLD sells covered calls on the stocks it owns, including companies like Apple, Microsoft, and Amazon. This strategy allows them to generate income and provide a dividend yield of 9.8%. However, it may limit capital appreciation.

Summary & Key Takeaways

  • The video focuses on high-yield monthly dividend ETFs, with a minimum yield of 5% and a maximum of 10%. Smaller ETFs often come with higher fees and may get shut down due to their size.

  • The first highlighted ETF is HYLD, with a dividend yield of over 7% and high fees. It invests in high-yield bonds.

  • The second ETF is USHY, with a dividend yield of 5.8% and lower fees. It also invests in high-yield corporate bonds.

  • The video also mentions SDEM, a monthly dividend ETF focused on stocks from emerging markets. It has a 7% dividend yield.

  • The fourth highlighted ETF, SRET, is an REIT ETF with a yield of less than 8%. It invests in real estate investment trusts.

  • Lastly, the video discusses QYLD, a Nasdaq 100 covered call ETF with a dividend yield of 9.8%. It sells call options on stocks to generate income.

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