Monthly payouts of up to 7% from selective ETFs, a lesser-known investment opportunity for steady returns
The world of Exchange-Traded Funds (ETFs) continues to expand, offering various investment opportunities for investors. In Germany, high-yield monthly distributing ETFs are relatively limited, with many popular European and German-focused dividend ETFs paying distributions quarterly or semi-annually. However, there are some notable high-yield ETFs accessible in or focused on Germany that stand out with their distribution yields and payout frequencies.
One of the most prominent high-yield monthly distributed ETFs available for German investors is the Franklin European Quality Dividend UCITS ETF (IE00BF2B0L69). This ETF focuses on European quality dividend stocks and currently offers a distribution yield of approximately 8.8% as of August 2021. It provides monthly income, making it one of the highest-yielding monthly distributed ETFs available for German investors seeking dividend income.
Another high dividend ETF, although with less frequent distributions, is the VanEck Morningstar Developed Markets Dividend Leaders UCITS ETF (TDIV). This ETF focuses on global developed-market high dividend companies and offers around a 4.1% trailing yield with quarterly distributions.
The SPDR S&P Euro Dividend Aristocrats UCITS ETF (SPYW) is another option, yielding about 4.5%, with semi-annual distributions. It concentrates on Eurozone companies with consistent dividend growth.
For German-specific exposure, the iShares MSCI Germany ETF (EWG) covers large- and mid-cap German stocks but is not primarily a high-dividend, monthly-paying ETF.
It's worth noting that the PIMCO US Short-Term High Yield Corporate Bond Index UCITS ETF does not repeat the distribution method or stock weighting strategies mentioned in earlier bullet points.
These ETFs, while offering attractive yields, are largely unknown to most investors. For those seeking a second income or stable yields of up to seven percent per year, it's essential to research and understand the risks associated with these investments before making a decision.
References: 1. Investopedia 2. iShares 3. Franklin Templeton 4. SPDR
Investing in personal-finance matters, and the Franklin European Quality Dividend UCITS ETF (IE00BF2B0L69) is a notable high-yield monthly distributed ETF in this regard, offering a distribution yield of approximately 8.8% as of August 2021, focusing on European quality dividend stocks for German investors. On the other hand, the VanEck Morningstar Developed Markets Dividend Leaders UCITS ETF (TDIV) is an option for those willing to accept less frequent distributions, offering around a 4.1% trailing yield with quarterly distributions by focusing on global developed-market high dividend companies.
