Best Monthly Dividend ETFs on NASDAQ (2025)
📌 Table of Contents
1️⃣ Why Monthly Dividend ETFs Are Popular
Most dividend ETFs distribute income quarterly, but many investors prefer monthly payouts for consistent cash flow. This is especially attractive to retirees, part-time workers, or anyone wanting regular supplemental income.
In 2025, several NASDAQ-listed ETFs are designed specifically to pay dividends every month. These funds target dividend-paying companies, real estate investment trusts (REITs), or use covered call strategies to generate steady income.
2️⃣ How Monthly Dividend ETFs Work
Monthly dividend ETFs collect dividends from their underlying holdings and redistribute them to investors on a monthly schedule. Some funds also use options overlays (covered calls) to enhance income.
✅ Key Features:
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Regular monthly cash flow
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Attractive for budgeting (like a “paycheck”)
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Typically higher yields than standard ETFs
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Often more concentrated in income-generating sectors (utilities, REITs, financials)
3️⃣ Top Monthly Dividend ETFs on NASDAQ in 2025
Here are some popular monthly dividend ETFs currently traded on NASDAQ:
| Ticker | ETF Name | Dividend Yield (approx.) | Strategy |
|---|---|---|---|
| QYLD | Global X NASDAQ 100 Covered Call ETF | ~11% | Uses covered calls on Nasdaq-100 for high monthly income |
| RYLD | Global X Russell 2000 Covered Call ETF | ~12% | Covered call strategy on Russell 2000 index |
| XYLD | Global X S&P 500 Covered Call ETF | ~10% | Covered calls on S&P 500 for enhanced monthly yield |
| PFFD | Global X U.S. Preferred ETF | ~6.5% | Invests in preferred stocks with consistent monthly dividends |
| DIV | Global X SuperDividend U.S. ETF | ~7% | Focus on 50 high-yielding U.S. stocks |
👉 Yields are approximate for 2025 and may vary depending on market performance.
4️⃣ Pros and Cons of Monthly Dividend ETFs
✅ Pros
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Consistent monthly income stream
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Attractive for retirees or income-focused investors
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Higher yields compared to standard ETFs
❌ Cons
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Covered call ETFs (QYLD, RYLD, XYLD) may cap upside potential
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Yields can fluctuate if underlying companies cut dividends
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Often less growth-focused than other ETFs
5️⃣ Who Should Invest in Them?
Monthly dividend ETFs are best suited for:
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Retirees → To supplement pensions or social security with predictable income.
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Part-time workers / freelancers → For steady cash flow between irregular paychecks.
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Conservative investors → Who value income over aggressive growth.
However, younger investors focused on long-term growth may prefer dividend reinvestment in quarterly ETFs like SCHD or DVY.
6️⃣ Sample Monthly Income Strategy
For an investor with USD $2,000/month to allocate in 2025, here’s an example portfolio:
| Allocation | ETF | Purpose |
|---|---|---|
| $800 (40%) | QYLD | High monthly income from Nasdaq-100 covered calls |
| $500 (25%) | PFFD | Steady income from preferred shares |
| $400 (20%) | XYLD | Monthly cash flow from S&P 500 covered calls |
| $300 (15%) | DIV | Diversified high-yield stock exposure |
👉 Expected monthly yield: ~8–9% overall, depending on market conditions.
7️⃣ Final Thoughts
Monthly dividend ETFs on NASDAQ have grown in popularity because they provide predictable, high-frequency income. While these funds may not deliver the same long-term growth as traditional ETFs, they are an excellent choice for income-focused investors in 2025.
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QYLD, RYLD, XYLD → High-yield covered call strategies
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PFFD → Stable preferred stock exposure
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DIV → High-yield U.S. equities
💡 Strategy tip: Use monthly dividend ETFs for income needs, and complement them with growth ETFs like QQQ for long-term wealth.