"Most dividend stocks and dividend ETFs pay quarterly, and this creates awkward gaps if you're trying to cover monthly expenses. It's thus a good idea to look into monthly dividend ETFs like Invesco S&P 500 High Dividend Low Volatility ETF (NYSEARCA:SPHD ) , SPDR Dow Jones Industrial Average ETF Trust (NYSEARCA:DIA ) , iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT ) . They align much better with most people's rhythm of life, and they also compound faster than quarterly payouts."
"The Invesco S&P 500 High Dividend Low Volatility ETF tracks the S&P 500 Low Volatility High Dividend Index. Essentially, the index looks at low-volatility dividend stocks from the S&P 500 and selects 50 stocks that fit its criteria. It then weights by yield with a cap of 3% per stock and 25% per sector. It rebalances semi-annually in January and in July."
"SPHD is often seen as a monthly alternative to the Schwab US Dividend Equity ETF (NYSEARCA:SCHD ) . It is definitely worth considering if you want a monthly income, as SPHD has kept up quite well and comes with a slightly higher dividend yield, though the 0.30% expense ratio offsets this. The chart isn't pretty and has been flat for quite a while, but this is due to the enormous tech rally that widened the gap between cash cow companies and growth companies. When the pendulum swings the other way, SPHD will be able to start outperforming again."
Most dividend stocks and dividend ETFs pay quarterly, creating gaps for monthly expenses. Monthly dividend ETFs like Invesco S&P 500 High Dividend Low Volatility ETF (SPHD), SPDR Dow Jones Industrial Average ETF Trust (DIA), and iShares 20+ Year Treasury Bond ETF (TLT) align with monthly cash flows and compound faster than quarterly payouts. Holding best-in-class monthly dividend stocks can provide both defensive characteristics and steady income, with some sacrifice in yield and upside during rallies but stronger performance during downturns. SPHD selects 50 low-volatility, high-dividend S&P 500 stocks, weights by yield with caps, and rebalances semiannually.
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