These 5 ETFs (SCHD, DIVO, QQQI, JEPQ, MSTY) Are Dividend Royalty

When it comes to passive income investing, nothing fares better than exchange-traded funds. An ETF offers portfolio diversification, ownership of elite stocks and a track record of dividend growth. I always watch out for the dividend growth when picking an ETF to invest in since I want the dividends to cover my monthly expenses. 

Investors are always looking for ways to make their money work for them. An ETF is a low-cost option that offers steady income at low risk. If you’re no longer willing to research stocks and wait for quarterly dividends, here are five ETFs that offer steady, solid dividends. 

Schwab U.S. Dividend Equity ETF 

The Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) is one of the top ETFs for passive income investors. It offers ultimate diversification and a steady income. SCHD tracks the Dow Jones U.S. Dividend 100 index and holds 103 stocks. You can own elite names with little risk. 

Majority of its holdings are companies that have shown consistent dividend growth including popular names like Coca-Cola, Home Depot and ConocoPhillips. The ETF pays quarterly dividends and provides a reinvestment opportunity, allowing you to grow your money. 

SCHD has a dividend yield of 4.03% and an expense ratio of 0.06%, one of the lowest ratios we’ve seen in a while. Its yield is triple that of the S&P 500’s 1.5% and it has grown its payouts steadily in the past five years. SCHD offers high dividend growth for passive income investors. 

Amplify CWP Enhanced Dividend Income ETF

The Amplify CWP Enhanced Dividend Income ETF (NYSEARCA:DIVO) is a lesser-known ETF which has handled volatility well this year. The one thing that sets is apart is that it is not tech-heavy and owns only 28 stocks.

It offers diversification without overloading the portfolio and has invested into different sectors including consumer goods, financials, technology and energy. DIVO brings stability to your portfolio through a reliable income. 

It holds blue-chips companies like Procter & Gamble, Microsoft, McDonald’s and Chevron. The ETF is all about quality over quantity and it aims for dividend growth through high earners like Caterpillar, which has the ability to grow dividends over time. DIVO has a dividend yield of 4.81% and an expense ratio of 0.56%. That said, it pays monthly dividends. Now what’s not to like about this ETF?

NEOS NASDAQ-100 High-Income ETF 

The future is tech and believe it or not, tech companies have generated significant returns for investors in the past. If you’re on the lookout for exposure to tech-companies through an ETF, consider NEOS NASDAQ-100 High Income ETF (NASDAQ:QQQI). It has an impressive dividend yield of 13.92% and it pays monthly dividends, which attracts investors. The ETF has an expense ratio of 0.68%. 

The ETF has a slightly different strategy and it sells one-month index calls through equity-linked notes. If you can take a little risk and a slightly higher expense ratio, this ETF offers an exceptional yield. 

As mentioned above, the ETF invests in Nasdaq 100 companies including the Magnificent Seven like Apple, Nvidia, Meta, and Amazon. It has a sizeable yield and offers exposure to some of the biggest tech giants at little risk. The fund has achieved the right mix of high-yield stocks. 

JPMorgan Nasdaq Equity Premium Income ETF

The JP Morgan Nasdaq Equity Premium Income ETF (NASDAQ: JEPQ) is very similar to the NEOS Nasdaq 100 High Income ETF. It also tracks the Nasdaq 100 index and invests in the top blue-chip companies. It holds 108 stocks and is tech-heavy. The fund holds stocks like Microsoft, Amazon and Apple. 

The ETF is actively managed and sells call options on the Nasdaq 100 through equity-linked notes. The premium is collected in the form of cash and paid to shareholders monthly. If you’re looking for large-cap stocks, JEPQ is a solid choice. It offers passive income with capital appreciation, which very few funds do. 

It enjoys a trailing dividend yield of 11.01% and an expense ratio of 0.35%. The ETF is managed by the experts at JP Morgan which can bring peace of mind that your money is in safe hands. 

YieldMax MSTR Option Income Strategy ETF

Another lesser-known ETF, YieldMax MSTR Option Income Strategy ETF (NYSEARCA:MSTY) has garnered investor attention for the extraordinarily high yields. The ETF has yields exceeding 100% annually, driven by a covered call strategy on Microstrategy (NASDAQ:MSTR) stock. While many investors consider it a high-risk ETF, if you’re in it for the yield, MSTY wouldn’t disappoint. 

The ETF generates dividends from premiums generated by selling call options on MSTR. It has a 30-day SEC yield of 1.76%. MSTY currently has a 92.68% distribution rate and has generated a return of over 100% in a year. It is a fairly new fund and has an expense ratio of 0.99%, slightly on the higher side as compared to the other ETFs discussed here. 

MSTY carries high risk and high reward. It is suitable for investors who are willing to take risk for the short-term. When it comes to dividends, you wouldn’t be disappointed. 

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