Top 5 Monthly Dividend ETFs for Steady Income in 2025
Monthly dividend ETFs are a popular choice for investors looking to generate regular income while maintaining exposure to a diversified portfolio. These funds typically invest in assets that pay dividends on a monthly basis, such as REITs, preferred stocks, and high-yield bonds. The consistent cash flow provided by these ETFs can be particularly appealing for retirees or those seeking to supplement their income. Below, we delve into the top five monthly dividend ETFs available in 2025, examining their performance, holdings, and other critical factors.
1. SPDR Portfolio S&P 500 High Dividend ETF (SPYD)
The SPDR Portfolio S&P 500 High Dividend ETF focuses on high-dividend-yielding stocks within the S&P 500 index. With a low expense ratio of 0.07%, SPYD offers an attractive yield of approximately 4.5%. The fund provides exposure to well-established companies with a history of consistent dividend payments, making it a reliable choice for income investors.
2. Invesco Preferred ETF (PGX)
The Invesco Preferred ETF invests in preferred securities, which often offer higher yields than common stocks. PGX has a dividend yield of around 5.2% and an expense ratio of 0.50%. Preferred stocks are known for their hybrid characteristics, combining features of both stocks and bonds, which can provide stability during market volatility.
3. Global X SuperDividend REIT ETF (SRET)
The Global X SuperDividend REIT ETF focuses on real estate investment trusts (REITs) that pay high dividends. SRET boasts a yield of approximately 6.0% and an expense ratio of 0.58%. REITs are required by law to distribute at least 90% of their taxable income to shareholders, making them a compelling option for income seekers.
4. iShares Preferred and Income Securities ETF (PFF)
The iShares Preferred and Income Securities ETF is one of the largest preferred stock ETFs, with a dividend yield of around 4.8% and an expense ratio of 0.46%. PFF provides exposure to a broad range of preferred securities, offering diversification and income potential.
5. JPMorgan Equity Premium Income ETF (JEPI)
The JPMorgan Equity Premium Income ETF combines dividend-paying stocks with options strategies to generate monthly income. JEPI has a yield of approximately 5.5% and an expense ratio of 0.35%. This ETF is designed for investors seeking higher yields with managed risk.
| ETF Name | Ticker | Dividend Yield | Expense Ratio | Primary Holdings |
|---|---|---|---|---|
| SPDR Portfolio S&P 500 High Dividend ETF | SPYD | 4.5% | 0.07% | S&P 500 High Dividend Stocks |
| Invesco Preferred ETF | PGX | 5.2% | 0.50% | Preferred Securities |
| Global X SuperDividend REIT ETF | SRET | 6.0% | 0.58% | REITs |
| iShares Preferred and Income Securities ETF | PFF | 4.8% | 0.46% | Preferred Securities |
| JPMorgan Equity Premium Income ETF | JEPI | 5.5% | 0.35% | Dividend Stocks + Options |
Investors should consider their risk tolerance, investment horizon, and income needs when selecting a monthly dividend ETF. While higher yields can be enticing, they often come with increased risk. Diversification across multiple ETFs can help mitigate this risk while still providing a steady income stream. For more information, visit the official websites of the ETFs mentioned or consult a financial advisor.
References:
SSGA
Invesco
Global X ETFs
iShares
JPMorgan