2 Monthly ETFs That Just Raised Their Dividends—Should You Buy Them Now?

When an exchange traded fund (ETF) pays out dividends every month instead of making you wait three months, that’s an attractive feature. It’s even more enticing, though, when a dividend ETF just hiked its dividend distributions from one month to the next.

It’s a great feeling to get a check every month from an ETF (or more precisely, a cash distribution in your investment account). Yet, I encourage you to focus on safety and not just the dividend hikes.

Thus, I’ll now give you two monthly ETFs that are worth owning today. These two funds just raised their monthly dividends, but they also offer de-risking features for these uncertain times.

DIVO: Diversify With High-Quality Stocks

To start off, we’ll take a look at an under-the-radar fund that deserves more attention. The Amplify CWP Enhanced Dividend Income ETF (NYSEARCA:DIVO) has the makings of a monthly dividend superstar and could be a secret weapon in your passive income portfolio.

The DIVO ETF generates income by investing in a basket of 26 stocks and collecting dividends. In addition, the fund writes/sells covered call options to produce some extra income.

Importantly, the Amplify CWP Enhanced Dividend Income ETF seeks to invest in “high-quality dividend-oriented stocks” while providing “lower share price volatility.” Holding well-known blue-chip stocks is a safety feature of DIVO, and so is the fund’s multi-sector diversification.

Within the Amplify CWP Enhanced Dividend Income ETF, you’ll find established large-cap firms from many different segments of the economy. These include RTX/Raytheon Technologies (NYSE:RTX), Microsoft (NASDAQ:MSFT), Visa (NYSE:V), Caterpillar (NYSE:CAT), and Home Depot (NYSE:HD).

Good Yield and Growing Distributions

Clearly, the Amplify CWP Enhanced Dividend Income ETF has the potential to de-risk your portfolio during times of turbulence. Does the fund offer a decent yield, though?

I’d say the answer is yes, as the DIVO ETF currently features a distribution rate (i.e., a forward annual dividend yield) of 4.73%. That’s a highly respectable yield for a reasonably safe ETF.

Plus, to sweeten the deal, you’ll get cash payouts each and every month with the Amplify CWP Enhanced Dividend Income ETF. This presents opportunities for frequent distribution reinvestment, which could compound your portfolio’s growth over time.

Not only that, but the Amplify CWP Enhanced Dividend Income ETF raised its monthly dividend payment in May, and then hiked it again in June. The fund’s most recently paid distribution was $0.16752 per share.

SPHD: Stay Safe With Names You Know

My second pick for today is another fund you might not be familiar with. It’s the Invesco S&P 500 High Dividend Low Volatility ETF (NYSEARCA:SPHD), and you can immediately tell from the name that this is a solid pick for safety seekers and yield hunters.

This fund carefully selected 51 stocks from the prestigious S&P 500 large-cap index. These are stocks “that historically have provided high dividend yields and low volatility.”

We’re talking about heavy hitters from a variety of market sectors, such as Verizon Communications (NYSE:VZ), Pfizer (NYSE:PFE), Realty Income Corp. (NYSE:O), and Altria Group (NYSE:MO). Just like with DIVO, you’ll get instant portfolio diversification and exposure to well-known names with the SPHD ETF.

A Reliable Dividend Grower

We’ve discovered that the Invesco S&P 500 High Dividend Low Volatility ETF reduces portfolio risk by investing in a variety of blue-chip stocks. The next question, though, is whether the fund offers a respectable dividend.

On that topic, you’ll be glad to know that SPHD features a 12-month distribution rate of 3.39%. Furthermore, the Invesco S&P 500 High Dividend Low Volatility ETF pays its cash distributions on a monthly basis, much like the DIVO ETF does.

After digging into the details, I found that the SPHD ETF raised its distributions during the past five monthly payouts. The fund’s most recent distribution from June was $0.15051 per share.

There’s a lot to like about the Amplify CWP Enhanced Dividend Income ETF, and the same thing can be said about the Invesco S&P 500 High Dividend Low Volatility ETF. For access to diversified baskets of high-quality stocks, along with monthly payouts that were recently hiked, feel free to give both DIVO and SPHD a try.

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