Monthly dividends from offshore ETFs

Simon BrownETF Blog, Latest

US monthly dividend ETFs

US monthly dividend ETFs

Last week Rochelle offered a US listed ETF paying monthly dividends and yesterday we did a JSE Equity portfolio paying monthly dividends.

Today we’re looking at a range of offshore listed ETFs that pay monthly dividends. The focus is on that monthly payment, but also the methodology and overall performance. You need some price increase in the ETF each year, otherwise, inflation will eat you alive.

We also stress that dividends can always disappear as we saw during the pandemic.

SuperDividend U.S. ETF

Code ~ DIV

Listed ~ NYSE

TER ~ 0.45%

Dividend yield. ~ 5.24%

Annualised return ~ 5.23% since listing June 2017

Methodology ~ Invests in 50 of the highest dividend yielding equity securities in the United States.

Our view: Nice and simple.

iShares Preferred and Income Securities ETF

Code ~ PGX

Listed ~ Nasdaq

TER ~ 0.50%

Dividend yield. ~ 5.38%

Annualised return ~ 5.1% over last ten years

Methodology ~ Based on the ICE BofAML Core Plus Fixed Rate Preferred Securities Index (Index). The Fund will normally invest at least 80% of its total assets in fixed rate US dollar-denominated preferred securities that comprise the Index.

Our view: Preferred stock ranks higher than normal so lower risk, but lower capital growth while paying higher dividends and preferred dividends paid before normal.

Invesco KBW High Dividend Yield Financial ETF

Code ~ KBWD

Listed ~ Nasdaq

TER ~ 0.50%

Dividend yield. ~ 8.66%

Annualised return ~ 6.4% over last ten years

Methodology ~ Based on the KBW Nasdaq Financial Sector Dividend Yield Index (Index). The Fund generally will invest at least 90% of its total assets in the securities of publicly listed financial companies with competitive dividend yields.

Our view: More return as they investing directly into stocks not preferred which increases the risk and the reward a little.

Nasdaq 100 Covered Call ETF

Code ~ QYLD

Listed ~ Nasdaq

TER ~ 0.60%

Dividend yield. ~ 15.06%

Annualised return ~ 6.6% since listing in December 2013

Methodology ~ Seeks to generate income through covered call writing, which historically produces higher yields in periods of volatility. Covered call writing can limit the upside potential of the underlying security.

Our view: Options cap upside but as long as they are fully covered (they hold the shares) no risk is not extreme and they have almost a decade long track record.

An important last disclaimer. I doubled checked all the data, but it may be wrong and of course, it’ll change over time.

Simon Brown

ETF blog


At Just One Lap, we are big fans of passive investment using ETFs. In this weekly blog, we discuss ETFs on the local market and the factors you need to consider when choosing an ETF. If you have wondered how one ETF differs from another, this is where you can find out. We explain which index each ETF tracks, what type of portfolio could benefit from holding each ETF, and how the costs will affect your bottom line.