Investors seeking a regular income from their holdings may benefit from dividend-paying exchange-traded funds (ETFs). They are gaining popularity amid market uncertainty and have become an integral part of the portfolio for investors seeking stability and a high yield. Stocks and mutual funds pay quarterly dividends, but there are a few ETFs that pay monthly. It can be more convenient to manage cash flow, handle expenses, or reinvest the dividends.
Fortunately, there are several monthly dividend ETFs you can choose from, but a high yield is not the only thing you need to look out for. You need to look at the stability of the dividends and aim for a mix of capital appreciation with steady income. Here are three ETFs with an attractive yield that also reward you monthly.
JPMorgan Equity Premium Income ETF
JPMorgan’s Equity Premium Income ETF (NYSEARCA:JEPI) is an actively managed fund that invests in blue-chip companies in the U.S. The fund picks the best S&P 500 stocks with low volatility and steady dividends. It has a yield of 7.92% and an expense ratio of 0.35%. Its NAV is $57.15 and has remained flat in 2025.
JEPI holds 125 stocks and is a covered call ETF. The fund invests in equity-linked notes and sells call options on an index. A call option is the right to buy shares at a specified price and is bought by bullish investors. The seller of the option receives a premium for the same.
The net profit in premiums collected and the dividend income from stocks ensure a steady monthly distribution to shareholders. This allows it to maintain a high yield despite market ups and downs. While the dividend amount has varied, it hasn’t disappointed investors. Its sector allocation is as follows:
- Information technology: 15.2%
- Financials: 14%
- Industrials: 11.9%
- Healthcare: 11.5%
It holds the Magnificent Seven in the top 10, such as Nvidia, Amazon, Meta Platforms, and Microsoft Corporation. Besides them, JEPI has strong dividend payers like AbbVie, Johnson & Johnson, Walmart, and 3M. Several of these holdings have shown capital growth over the years. JEPI not only ensures steady passive income but also offers capital appreciation in the long term, making it an ideal choice for a retirement portfolio.
Invesco S&P 500 High Dividend Low Volatility ETF
Invesco’s S&P 500 High Dividend Low Volatility ETF (NYSEARCA:SPHD) invests in stocks that pay high dividends and have low volatility. It picks some of the best companies in the U.S. with low volatility. The fund is heavily focused on real estate investment trusts (REITs) and utilities.
The fund has $3.2 billion in assets under management, and its NAV is $49.48, up 2.32% year-to-date. SPHD has a rule-based methodology to pick and weight the holdings based on the dividend yield. It aims to generate a steady income for investors at lower risk compared to the broader market.
The fund has a yield of 3.42% and an expense ratio of 0.30%. It invests in S&P 500 companies and holds 51 stocks. The fund allocation is as follows:
- Real estate: 22.82%
- Consumer staples: 17.88%
- Utilities: 13.65%
- Healthcare: 11.42%
The top 10 holdings of the fund include dividend payers like Verizon Communications, Pfizer, Realty Income, and United Parcel Service.
About 40% of the fund lies in mid-cap stocks, followed by 29% in large-cap and 13% in small-cap stocks. While it is a smaller fund with limited stocks, it ensures low risk and steady income. It has reported 12 consecutive years of dividend payments, and its annual payout is $1.71.
Global X SuperDividend ETF
Launched in 2011, the Global X SuperDividend ETF (NASDAQ: SDIV) offers higher diversification and invests in the 100 highest-dividend payers in the world. It includes stocks, real estate investment trusts, and master limited partnerships. It has a yield of 8.38% and an expense ratio of 0.58%.
To be a part of SDIV, a company should have a dividend yield between 6% to 20% and it shouldn’t have announced a dividend cut, offering stability and safety for investors. There will be very little risk when it comes to the monthly distributions. While the amount may vary, it wouldn’t disappoint.
SDIV has made monthly distributions for 13 consecutive years. The fund holds 106 stocks and 24% of the fund is invested in United States, followed by 16% in Hong Kong, and 9.2% in Brazil. SDIV allows you to enjoy ultimate diversification by investing in different countries, sectors, and companies. Its sector diversification is as follows:
- Financial services: 31.4%
- Energy: 23.1%
- Real estate: 12.7%
- Materials: 11.5%
Some of its holdings include Bright Smart, Kenon Holdings, Phoenix Group, and Ithaca Energy Plc. If you’re looking for a high yield and low risk, consider SDIV. It has an NAV of $24.08 and has gained an impressive 16.22% year-to-date.
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