3 Monthly Dividend ETFs Investors Shouldn't Wait On

"Investors looking for a way to gain highly diversified exposure to the markets at a very low cost have increasingly gravitated toward such investing vehicles, with some investors now growing concerned that too much concentration exists within these price-insensitive investing vehicles. But the reality is that the diversification and upside ETFs have provided for decades is worth considering. For investors looking for meaningful passive income in retirement, finding options that pay monthly dividends is one angle many are playing."

"One of the top sectors I continue to believe ought to be top of mind for investors right now is utilities. The Utilities Select SPDR Premium Income Fund (XLUI) is a top option for those who believe that the artificial intelligence and data center rollout we're seeing will drive significant power demand and usage over time. Indeed, as a top picks-and-shovels play on what could be the next biggest economic shift since the Industrial Revolution, those looking to benefit from a game-changing technology are increasingly shifting their focus away from high-performance chips (which use a lot of power) to the companies that provide this power as raw inputs."

"There are different tangential bets to make on the AI trade, but I continue to believe that owning a high-quality and diversified portfolio of utilities stocks can provide the stability and growth investors are looking for (with very meaningful yields). Currently sporting a 3.5% dividend yield paid monthly, what's not to like?"

Exchange-traded funds offer low-cost, diversified market exposure while concentrating concerns exist among some investors. Monthly-dividend ETFs present a passive income avenue for retirees seeking steady cash flow. Utilities-focused funds like the Utilities Select SPDR Premium Income Fund (XLUI) aim to capture rising power demand from artificial intelligence and data center expansion, positioning utilities as picks-and-shovels providers with stability, growth potential, and a 3.5% monthly dividend yield. Municipal-bond ETFs such as tax-advantaged high-yield muni funds attract interest for federally tax-exempt income. Combining diversification, yield, and tax efficiency can support retirement income strategies.

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