These Monthly Dividend ETFs Pay Like Clockwork (Up to 8% Yields)

Core Viewpoint - Generating passive income through investments, particularly in dividend stocks and ETFs, is a primary goal for many investors, including beginners and retirees [2][3]. Group 1: ETFs Overview - Exchange-traded funds (ETFs) are professionally managed funds that invest in a diversified portfolio of dividend-paying stocks, providing a steady stream of income [3]. - Many top ETFs offer monthly dividends, with yields reaching up to 8% [3]. Group 2: JEPQ ETF Details - The JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) offers a high yield of 11.42% by investing in low-volatility Nasdaq 100 stocks and selling call options [7][8]. - JEPQ has $32 billion in assets under management and has generated a 3-year return of 89.11% [8]. - The ETF has an expense ratio of 0.35% and has consistently increased dividends for three consecutive years, recently announcing a dividend of $0.465 per share [9]. Group 3: Investment Strategy and Risks - JEPQ employs a covered call strategy, which involves writing call options on its holdings to generate additional income [4]. - The ETF's portfolio is heavily concentrated in the technology sector (41%), with significant holdings in major companies like Nvidia, Apple, and Microsoft [10]. - While JEPQ provides high yields, it also presents risks such as variable monthly income and underperformance in bull markets due to capped upside potential [4].