3 Dividend ETFs to Buy and Hold for $10,000 in Monthly Income

"Most investors are never going to get to $10,000 in monthly income, at least not when you adjust for inflation. If you followed everything by the book, you're more likely to make $3-4k a month. A $10k monthly check would require $3 million with a 4% yield. The yield is readily available, but for the vast majority of people, the $3 million is not."

"Rather than simply buying and holding Nasdaq-100 stocks, the ETF writes call options against its holdings while using call spreads to maintain greater participation in upside market movements compared to traditional covered call strategies. Here are its NEOS Nasdaq-100 High Income ETF holdings. This has led to significant income along with some upside. QQQI comes with a forward yield of 14.29%."

"QQQI comes with a forward yield of 14.29%. This is an active ETF, so the fees are higher at 0.68%, or $68 per $10,000. It is a newer fund, but the strategy can work in the long run due to how popular options are getting. Retail investors are pouring into the market, and this can lead to even higher premiums being"

Most investors are unlikely to achieve $10,000 in monthly income after inflation without roughly $3 million at a 4% yield. Three monthly dividend ETFs deliver a blended yield of 13.58%, requiring $883,652 invested equally to produce $10,000 monthly. The strategy suits a narrow slice seeking to shift from perpetual capital preservation to funding a richer decade or two, or as a partial allocation for others seeking income. NEOS Nasdaq-100 High Income ETF (QQQI) uses covered calls and call spreads on Nasdaq-100 holdings to generate income while retaining upside participation. QQQI's forward yield is 14.29% and its expense ratio is 0.68%.

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