Hi there, I recently watched a YouTuber’s video where was talking about his ETF portfolio. He explained those once who pay monthly their dividend but honestly I couldn’t find any of them on trading212.
Do you know any which I can invest on?
Not sure about ETFs but there are Reits like Realty Income which pay out monthly as well as some individual stocks.
A word of warning though: to my mind, frequency of payout is much of a muchness. More generally, I’d also be wary of the YouTube dividend hypetrain–total return is what counts.
What does it really matter whether you receive £100 a month, £300 a quarter, £600 biannually or £1,200 a year? Yes, you can reinvest a little sooner but the difference is relatively neglible and there are much more important factors.
However, there is perhaps a slightly stronger case for more frequent dividends when you’re say in retirement and actually taking the income.
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Completely agree with Topher, but it does depend on what you are trying to achieve.
Regular income or a good return?
I think investing can be split into 3 categories.
Growth
Income bearing
Total return.
In reality people should only be interested in the latter two.
If you are after regular income, then the fund is going to have to raise cash once a month to pay out an interest/dividend distribution. This means for potentially say a few days a year x 12, those funds are not invested/generating you a return potentially as have to be available to pay out. If you are after a monthly return, have a look to see if you can find 3 quarterly paying funds, or 6 semi annual paying funds. It could add some diversity to your income generating portfolio as well.
That said, the advantage of a monthly fund is that they can tend to ‘flatten’ out income payments so you get a stable return over the year.
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If you use an app like Revolut, you can collect quarter div and arrange automatic monthly transfers to an account.
It’s a bad criteria to focus on when investing. Do you get cash in hand everyday? No, your salary is paid monthly and you manage it accordingly. Same would be the case with 2-4x per year if planning to live off dividends
iShares J.P. Morgan $ EM Bond UCITS ETF (SEMB) pays monthly dividend.
I’m not saying that it’s worth or not to invest money in it.
I think this is age dependent. Younger people can afford to go after growth stocks and I’d even go as far as to say it would be prudent for them to do so, rather than going for say dividend stocks.
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https://www.dividenddata.co.uk/quarterly-dividends.py?market=etfs
List is linked above. How many available on T212? No idea!