"Most income investors are used to waiting. They buy a dividend stock, mark the calendar, and collect a check every three months. That schedule works, but it does not line up with life's monthly rhythm of rent, insurance, and grocery bills. Monthly-paying exchange-trade funds (ETFs) are becoming popular for that reason. Not only are they more convenient, but they also compound faster."
"A new cohort of ETFs invests in familiar names, with the twist being that they use options to squeeze out high single-digit to double-digit yields. You get market participation with a monthly paycheck that most dividend aristocrats, REITs, or utility stocks cannot match on their own. The JPMorgan Equity Premium Income ETF (NYSEARCA:JEPI ) is one of these monthly dividend ETFs. It is an actively managed fund that combines a defensive portfolio of U.S. large-cap stocks with a systematic options-selling strategy"
Monthly-paying ETFs align income distributions with typical monthly expenses and enable faster compounding than quarterly dividend stocks. Many monthly ETFs also offer some of the highest sustainable yields, often exceeding core inflation and the effective risk-free rate. New option-overlay ETFs invest in familiar large-cap names while selling options to generate high single-digit to double-digit yields. JEPI is an example of an actively managed fund that pairs a defensive U.S. large-cap portfolio with a systematic options-selling strategy to lower volatility and produce monthly distributions. Holding these ETFs can help investors outpace inflation and secure steady monthly cash flow.
Read at 24/7 Wall St.
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