Monthly Dividend ETFs To Buy #1: SPDR Dow Jones Industrial Average ETF (DIA)
Dividend Yield: 2.1%
You can make the argument that the Dow Jones Industrial Average is a dinosaur of an index and pretty meaningless in terms of true broad stock market measure. Regardless, the index is still a great way to add exposure to some of America’s largest and most venerable companies. The real “bedrock” of America.
The popular SPDR Dow Jones Industrial Average (DIA) ETF makes it easy to add the Dow to your portfolio.
The $11 billion and heavily traded dividend ETF tracks the 30 mega-cap stocks within the Dow. These include household names like Visa (V) and Caterpillar (CAT). All for a cheap expense ratio of 0.17% — or $17 per $10,000 invested. That focus on the biggest and brightest has produced some pretty decent returns over the last ten years. The DIA has managed to post a 7.5% annual return during that time — not too shabby for plodding mega-cap giants.
Another often ignored benefit of the DIA, is that it pays a monthly dividend. That monthly payout — along with the fact that its holds relatively stable and large firms — makes it perfect for conservative investors looking for income.