5 POINTS FROM JOSEPH'S ETF ANALYSIS
Choosing ETFs that pay out monthly dividends for generating income
What ETFs can give you the steadiest (and highest) dividends for generating MONTHLY income?
Our partner Joseph Hogue from Let’s Talk Money broke down his 5 favorite picks for this strategy. Here are 5️⃣ great tips he shared:
1️⃣ Monthly dividend ETFs are attractive, but they don’t come without risks! While stock dividends are usually maintained to grow steadily, dividend ETFs generally have much more volatile payouts that can vary year to year. 👀
2️⃣ You might have heard the term “covered calls” being thrown around by day-trading gurus, but ETFs that utilize this strategy can be a smart investment! These fund managers sell covered calls to generate dividends and while reducing risk. 💰
3️⃣ Many funds sell calls on assets that make up roughly 1% of their holdings. This keeps the risk lower. The management teams are picking and choosing the best calls on individual positions to make each month, instead of the entire portfolio. 📊
4️⃣ Joseph used Stock Card to show how a different ETF, “RYLD,” profits from covered calls with a slightly different approach. You can see that the RYLD sells call on yet ANOTHER fund, instead of many different stocks. Same purpose, more simplified approach.
5️⃣ Keep in mind that some ETFs can be pricier due to multiple layers of expenses. For example, RYLD has a double pay structure between Vanguard index and the issuer itself. For the 5 ETFs that Joseph analyzed, check out his video:
BONUS PARTNER PORTFOLIO
All the best picks from Joseph Hogue's channel in one spot
💥 Bonus💥 Joseph Hogue’s Bowtie Portfolio is available on Stock Card! He adds companies that are capitalizing on the biggest trends of 2021’s market. Follow it here to stay updated! ⬇️