List of Monthly Dividend ETFs for Retirement Income

If you're looking for a steady stream of income in retirement, monthly dividend ETFs can be a great option. Some popular choices include Vanguard Dividend Appreciation ETF, which has a 2.45% dividend yield and has increased its dividend payout for 25 consecutive years.

For those seeking lower volatility, iShares Core S&P U.S. Dividend Aristocrats ETF has a 2.33% dividend yield and focuses on companies with a history of consistently paying dividends.

One ETF that stands out for its high dividend yield is Invesco PowerShares High Yield Equity Dividend Achievers ETF, which has a 4.33% dividend yield and invests in companies with a history of increasing their dividend payouts.

The top performing dividend ETFs are a great way to generate passive income and diversify your portfolio.

The Schwab US Dividend Equity ETF (SCHD) offers a 3.3% dividend yield, making it a strong contender for those seeking higher payouts.

The SPDR S&P Dividend ETF (SDY) has a 2.3% dividend yield, and tracks the S&P High Yield Dividend Aristocrats Index, which includes stocks with 25 or more consecutive years of payout hikes.

The Vanguard High Dividend Yield ETF (VYM) offers a 2.7% dividend yield, and is a solid choice for those seeking a balanced portfolio.

One fund on the list, the WisdomTree Emerging Markets High Dividend Fund (DEM), has a whopping 5.4% dividend yield, quadrupling the S&P 500's current 1.2% yield.

Here are some of the top performing dividend ETFs, along with their dividend yields:

These ETFs are all highly rated by Morningstar, with several earning Gold or Silver Medalist ratings.

Realty Income, a conservative triple-net retail REIT, is a great example of a stock that can provide stable recurring rental cash flows and a high dividend yield. Its share price can be volatile, but it's still a safe bet for retirement income.

With a dividend yield of 5.6%, Realty Income offers a higher return than the S&P 500 and the 10-year Treasury. Its largest tenants include 7-Eleven, Dollar General, and Lowe's, all of which tend to be recession-proof.

Realty Income has made 653 consecutive monthly dividend payments and has raised its dividend for 30 straight years, making it a proud member of the S&P 500 Dividend Aristocrats. This consistency is key for retirees who rely on a steady income.

Here are some key characteristics of Realty Income that make it a great choice for retirement income:

By investing in Realty Income and other dividend-paying stocks, you can create a reliable source of income in retirement.

The Schwab US Dividend Equity ETF (SCHD) is a well-rounded solution ideal for buy-and-hold investors looking for a low-cost ETF. Its expense ratio of 0.06% translates into just $6 annually on a $10,000 investment.

This index fund follows the Dow Jones U.S. Dividend 100 Index, which tracks 100 high-yielding stocks from the Dow Jones U.S. Broad Market Index that have paid dividends for at least 10 consecutive years. The fund has quality filters that favor cash flow to total debt, return on equity, five-year dividend growth, and dividend yield.

The resultant portfolio is a roughly 100-member group of large-cap dividend stocks with a weighted average market capitalization of about $134.3 billion – well into mega-cap status. The fund intentionally excludes real estate investment trusts (REITs) and master limited partnerships (MLPs).

Its top holdings include Lockheed Martin (LMT), AbbVie (ABBV), and Home Depot (HD), which help deliver a supple yield of 3.3%. This is nearly triple the S&P 500's yield at present.

Here are some key statistics about the Schwab US Dividend Equity ETF:

The WisdomTree Emerging Markets High Dividend Fund is a unique investment option that taps into emerging markets for high yield. It has $2.8 billion in assets under management.

This fund is a large value fund that tracks the WisdomTree Emerging Markets High Dividend Index, which selects the highest 30% of emerging market stocks ranked by dividend yield. The fund has a wide portfolio of 503 emerging market stocks.

The fund is primarily large cap in nature, with 61.6% of its holdings being large cap stocks. It also has a significant presence of mid-cap stocks, making up 22.9% of its holdings. Small-cap stocks account for 13.6% of its holdings.

The fund's biggest holding is China Construction Bank, making up 3.9% of its assets. The top 10 holdings only account for 24.5% of its assets, indicating that the fund is not top-heavy.

Geographically, the fund is lopsided, with Chinese stocks making up almost 20% of its assets. Taiwanese and Brazilian stocks also have a significant presence, making up 17.0% and 11% of its assets, respectively.

The fund routinely yields between 5% to 7%, which is significantly higher than most stock funds. However, the dividends are not as consistent as those found in US stocks, with some stocks having variable dividends.

Gladstone Land Corporation is a real estate investment trust that specializes in owning and operating farmland in the U.S.

It owns about 160 farms, comprising more than 110,000 acres of farmable land. The trust offers long-term sale leaseback transactions, traditional leases of farmland, and outright purchases of farm properties.

Gladstone Land Corporation has a diversified portfolio with an appraised value of over $1.5 billion. It has a strong track record of paying monthly dividends, with a current dividend yield of 4.7%.

Here are some key statistics about Gladstone Land Corporation:

Another REIT worth considering is Realty Income, which owns a portfolio of nearly 15,500 properties spread across over 1,550 different tenants in nearly 90 separate industries.

Realty Income has a strong reputation for paying monthly dividends, with 653 consecutive monthly dividend payments and 30 straight years of dividend growth.

It yields 5.6% at current prices, making it a more attractive option for income investors.

Gladstone Commercial, another REIT on the list, owns a portfolio of logistical and light industrial properties, with approximately 63% of its rental revenue coming from industrial properties.

Its diversified portfolio has had little difficulty navigating the volatility of the past few years, with a portfolio of 135 properties spread across 27 states and leased to 107 different tenants.

It has a strong track record of paying monthly dividends, with a current dividend yield of 7.1%.

Apple Hospitality REIT, on the other hand, owns a portfolio of hotels with tens of thousands of rooms located across dozens of states.

It franchises its properties out to leading brands, including Marriott-branded hotels, Hilton-branded hotels, and Hyatt-branded hotels.

Apple Hospitality REIT has a strong track record of paying monthly dividends, with a current dividend yield of 5.9%.

When choosing a monthly dividend ETF, it's essential to consider the yield and expense ratio. The Vanguard Dividend Appreciation ETF (VIG) offers a relatively high yield of 2.23%, but its expense ratio is 0.06%.

The Schwab U.S. Dividend Equity ETF (SCHD) has a slightly lower yield of 2.18%, but its expense ratio is just 0.06% as well. This makes it a very competitive option in the market.

The iShares Core S&P U.S. Dividend Aristocrats ETF (NOBL) has a yield of 2.07%, but its expense ratio is 0.35%, making it a less attractive choice for investors on a tight budget.

In terms of performance, the Vanguard Dividend Appreciation ETF (VIG) has a 10-year annualized return of 14.35%, while the Schwab U.S. Dividend Equity ETF (SCHD) has a 10-year annualized return of 13.45%.