What is everyone’s favourite high dividend yield ETFs? Are there any that pay out monthly?
These aren’t “high yield” and are bond ETFs rather than stocks ETFs, but do pay out monthly:
VGOV - UK gilts etf
SEMB - Ishares j.p. Morgan EM Bonds
I think most HY ETFs pay quarterly (not looked so may be wrong), but you can probably find enough that at least one would be paying each month. I’ve done this with stocks in pies (named pattern 1, 2 & 3) which hold quarterly dividend income for
- Jan, Apr, Jul, Oct
- Feb, May, Aug, Nov
- Mar, Jun, Sep, Dec
I know this isn’t exactly what you’re asking but I felt like it was at least semi-appropriate.
I would also be interested hearing of any monthly paying HY ETFs that I can look into
Made this back in May - so things might have changed, but you get the point regarding frequency (monthly)
Amazing thank you! Very useful
I am also interested in about the ETF suggestions for high yield.
I am currently holding VHYL but haven’t done a detailed research about this, but probably it is good enough to hold
Don’t get too fixated with yield
Growth is valuable too
Don’t be fixated with Payment frequency
It bears absolutely no relation to your overall return. 4% split into 12 parts is the same as 4% split/paid in 2 parts.
Remember high yield usually comes at a cost - that being either a falling share price, an unsustainable future dividend compared to historic, or a basket of lower grade fixed income securities that may or may not be wise to own in certain economic environments, ownership of physical retail or commercial properties that may or may not be wise to own in certain economic environments. And a million other scenarios.
Make sure you know what you’re getting in to.
Put bond funds in your overall portfolio, sure. Do it according to your risk profile and investment time frame. But put equities or equity ETFs in there too. If your time horizon is long go for growth. Put holdings in ISAs or pensions. Don’t make the mistake of generating an income tax liability instead of a capital gains tax liability. Don’t swap your £100 Investment today for assets worth £99 tomorrow just to get that £1 dividend - especially if not tax wrapped.
You get the point
While it’s true frequency doesn’t affect the amount you receive annually, for those using it to pay monthly bills, etc it can be quite a big deciding factor.
Myself I like to have a nice selection of everything, monthly payers included but also generally good looking older companies with a probable long future, and young companies with a good chance at growth.