Is there an ETF that pays weekly dividends?
SoFi Weekly Dividend ETF (WKLY)
While most stocks pay out dividends on a quarterly or annual basis, there are some stocks that pay weekly dividends. These stocks are often referred to as “weekly dividend stocks.” Companies typically pay dividends in the form of cash or additional shares of stock as a portion of their earnings.
Yields: SPHD has a higher yield of 4.97%, while SCHD has a lower but respectable yield of 3.77%. This difference is by design, as SPHD focuses on high-yielding dividend stocks, while SPHD focuses on companies with a history of paying dividends.
Schwab U.S. Dividend Equity ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, SCHD is a sufficient option for those seeking exposure to the Style Box - Large Cap Value area of the market.
It's possible to live off the income from high-dividend ETFs, but it may take some planning. You can find high-dividend ETFs by analyzing the ETF selection in your brokerage account.
Dividend-paying Stocks
Shares of public companies that split profits with shareholders by paying cash dividends yield between 2% and 6% a year. With that in mind, putting $250,000 into low-yielding dividend stocks or $83,333 into high-yielding shares will get your $500 a month.
WKLY also might seem like it pays a low yield, but it isn't too far off from similar equity funds. Equity funds aren't particularly known for their incredibly high yields anyway unless you start getting leverage or an options strategy. In this case, it comes in at 2.25% based on the $0.02 paid weekly.
Overall, SCHD remains an attractive option for investors looking to balance income and growth in their portfolio. Its focus on quality large cap dividend payers, low expense ratio, and strong historical performance make it a solid choice for diversification and long-term investing.
high yield for the VYM), the Schwab U.S. Dividend Equity ETF may be a better bet for investors that seek to invest for the long term and reinvest their dividends. The longer-term (10-year) performance comparison shows that the SCHD outperformed the VYM quite significantly on both a price and total return basis…
However, right now, SCHD looks like the top choice based on its higher dividend yield and consistently stronger performance over the past three, five, and 10-year time frames.
Why is SCHD struggling?
Not only was SCHD tilted towards value stocks, it was HEAVILY tilted towards value stocks. Considering that this was in a year where VUG outperformed VTV by 37%, it's pretty easy to see why SCHD performed as poorly as it did - significant value overweighting at exactly the wrong time!
Lastly, SCHD's expense ratio of just 0.06% is extremely favorable for investors, making this a compelling ETF to own in 2024 and beyond.
A persistent environment of high interest rates and lingering inflation hasn't deterred investors from flocking to riskier bets. Unsurprisingly, this climate isn't favorable for an ETF like SCHD that epitomizes a large-cap value/quality strategy.
And if you've got a large portfolio totaling more than $1.1 million, your dividend income could come in around $50,000 per year. By then, there could be other dividend-focused ETFs to choose from.
Cons. No guarantee of future dividends. Stock price declines may offset yield. Dividends are taxed in the year they are distributed to shareholders.
| Symbol | Name | Dividend Yield |
|---|---|---|
| AAPB | GraniteShares 2x Long AAPL Daily ETF | 26.13% |
| RYSE | Vest 10 Year Interest Rate Hedge ETF | 22.07% |
| FLJH | Franklin FTSE Japan Hedged ETF Franklin FTSE Japan Hedged Fund | 22.06% |
| MAXI | Simplify Bitcoin Strategy PLUS Income ETF | 21.37% |
Reinvest Your Payments
The truth is that most investors won't have the money to generate $1,000 per month in dividends; not at first, anyway. Even if you find a market-beating series of investments that average 3% annual yield, you would still need $400,000 in up-front capital to hit your targets. And that's okay.
But even at 9.5%, we're talking about a middle-class income of $4,000 per month on an investment of just a touch over $500K. Below, I'll reveal how to start building a portfolio that could get you an even bigger income stream than this today.
- ARR. ARMOUR Residential REIT Inc. 18.16. 0.25.
- ORC. Orchid Island Capital Inc. 8.27. ...
- AGNC. AGNC Investment Corp. 9.15. ...
- OXSQ. Oxford Square Capital Corp. 3.16. ...
- EARN. Ellington Residential Mortgage REIT. 6.72. ...
- SLRC. Solar Capital Ltd. 15.12. ...
- PFLT. PennantPark Floating Rate Capital Ltd. 11.37. ...
- MAIN. Main Street Capital Corporation. 47.62.
Mutual fund investors who don't want to take their dividend payouts can choose from either a growth option or a dividend reinvestment option. With a growth option, the investor lets the fund company invest the dividend payments in more securities and ultimately grow their money.
What pays the best dividend?
- Verizon Communications VZ.
- Johnson & Johnson JNJ.
- Philip Morris International PM.
- Altria Group MO.
- Comcast CMCSA.
- Medtronic MDT.
- Pioneer Natural Resources PXD.
- Duke Energy DUK.
SoFi WKLY Dividend ETF Details. WKLY indeed distributes dividends to shareholders every week, on Thursday. WKLY has an expense ratio of 0.49%.
Investor Takeaway
SPHD features a higher dividend yield than SCHD, but over time, SCHD has delivered superior total returns for a significantly lower price, making it the superior choice for investors.
SCHD's long-term track record of double-digit annualized returns over many years also inspires confidence that this is still a good place to be in the long term. Lastly, SCHD's expense ratio of just 0.06% is extremely favorable for investors, making this a compelling ETF to own in 2024 and beyond.
Investors investing in taxable accounts argue that SCHD's dividends aren't taxed as harshly as the interest income from a Treasury. That is true, but a favorably taxed unrealized loss of over 2% does not compare well with a taxed gain over 4%.
