Generating a notable amount of monthly income can look like a daunting task. If you look at the most popular monthly dividend stocks today, you’ll quickly realize that it’s extremely hard for the average person to live off of monthly dividend payments. Unless you’re a multi-millionaire, you will have to dip into your principal.
Let’s assume you have $1 million today. The standard 4-5% yield will get you ~$4,000 in monthly income. But what if you could set aside $100k for a 50% increase in monthly payouts? And if you don’t mind taking more risk, setting aside 20% of that million could double your income.
The following three ETFs have a blended trailing 12-month dividend yield of 23.59%. This means $100,000 would’ve generated $23,590, or $1,965. That’s if you put an equal amount of money into all three. Investing more in the higher-yielding ones can skew your monthly income well above $3,000.
I’d only recommend partially allocating your income portfolio to these ETFs.
NEOS Nasdaq-100 High Income ETF (QQQI)
Historically, the deal was quite simple: you either take growth or you take income. If you take the former, you take some risk to get ahead, whereas the latter will let you snowball your dividends over decades.
However, a relatively new trend is making it so that you no longer have to choose one over the other.
NEOS Nasdaq-100 High Income ETF (NASDAQ:QQQI) uses options to provide exposure to the Nasdaq-100 and pay dividends at the same time. Simply put, the fund buys Nasdaq-100 stocks while simultaneously writing call options on the underlying NDX Index. These call options generate premium income, though the caveat is that they cap some upside. Even that capped upside is much better than holding an asset that trades flat and yields you half the amount.
Tech stocks seem well-positioned to deliver gains due to AI over the long run. As for option premium income, the fund is likely to maintain above-average payouts due to an increase in options trading. Online platforms have led to a swarm of new retail investors who are eagerly experimenting with options trading.
QQQI gets you a 13.93% dividend yield. The expense ratio is 0.68%, or $68 per $10,000.
ProShares Russell 2000 High Income ETF (ITWO)
ProShares Russell 2000 High Income ETF is an ETF that uses a daily covered call strategy for high monthly income. It also gives you exposure similar to the Russell 2000 Index. It tracks the performance of the Cboe Russell 2000 Daily Covered Call Index.
ITWO implements a sophisticated “buy-write” strategy that holds Russell 2000 stocks while simultaneously selling daily call options on the same index. The fund uses swap agreements to replicate this strategy rather than directly writing call options.
The Russell 2000 Index was a major underperformer in the first few months of 2025 but has mostly erased its losses since. A V-shaped recovery is currently underway. The index is made up of the smallest 2,000 stocks in the Russell Index, and interest rate cuts are a positive catalyst that can allow them to outperform the broader market significantly.
Back in late 2020, as aggressive interest rate cuts started, the index gained ~45% in just 4 months.
ITWO comes with a dividend yield of 14.08%. The expense ratio is 0.55%, or $55 per $10,000.
YieldMax Gold Miners Option Income Strategy ETF (GDXY)
YieldMax Gold Miners Option Income Strategy ETF carries the most risk and also the most reward in this list. It is an actively managed fund that generates monthly income by selling call options on the VanEck Gold Miners ETF (NYSEARCA:GDX).
The ETF does not directly invest in GDX shares but instead writes call options on the underlying ETF while holding U.S. Treasury securities as collateral. It gives you exposure to miners, and indirectly gold, plus a fat yield of 43.2%.
The year-to-date total return is 61.44%.
It’s a great pick if you want to bet on gold and get paid monthly for it. Gold has soared above $3,700 per ounce and is outperforming even most tech stocks. Investors are pouring money into gold due to rapidly-changing economic policies. Even central banks are accumulating gold instead of the USD.
The expense ratio is 1.08%, or $108 per $10,000.
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