3 Monthly Dividend ETFs for Retirement Income

The Amplify CWP Enhanced Dividend Income ETF (DIVO) stands out for retirement investors prioritizing stability and quality. With an expense ratio of 0.56%, DIVO offers access to a carefully curated portfolio of 36 established companies known for their reliability. The fund’s strategy focuses on reducing share-price volatility by investing in household names like Apple (AAPL), American Express (AXP), Home Depot (HD), and Goldman Sachs (GS). This approach provides retirees with exposure to blue-chip stocks without the need for individual security selection.

DIVO’s current distribution rate of 4.82% provides substantial income potential, paid out monthly to support retirement cash flow needs. The fund’s concentrated yet high-quality holdings list ensures that investors benefit from established companies with strong dividend histories. For retirees looking to minimize drawdowns while maintaining equity exposure, DIVO represents a balanced option that combines income generation with risk management through its focus on stable, recognizable corporations.

The Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) offers retirement investors cost-effective access to dividend-paying stocks within the S&P 500 index. With the lowest expense ratio among the three funds at just 0.30%, SPHD provides efficient exposure to 51 large-cap companies selected for their high dividend yields and low volatility characteristics. This dual focus makes the fund particularly suitable for retirees seeking income without excessive price fluctuations.

SPHD’s 4.41% distribution rate, paid monthly, complements its low-cost structure to enhance retirement income potential. The fund’s holdings include well-known S&P 500 components such as Verizon Communications (VZ), Realty Income Corp. (O), Pfizer (PFE), and Altria Group (MO). By combining DIVO with SPHD, investors can achieve broader diversification across different segments of the large-cap universe while maintaining a focus on dividend income and volatility reduction.

The iShares Preferred and Income Securities ETF (PFF) takes diversification to another level with its unique focus on preferred stocks. This ETF holds 449 securities that blend characteristics of both bonds and stocks, offering fixed dividend payments while representing ownership in companies. With an expense ratio of 0.45% and a standout 6.5% annual yield, PFF provides the highest income potential among the three funds while maintaining monthly distributions.

PFF’s extensive holdings list includes blue-chip names like Bank of America (BAC), AT&T (T), Ford (F), and Allstate (ALL), providing exposure to a different asset class than traditional equity ETFs. The hybrid nature of preferred securities offers retirees a complementary income stream that behaves differently from common stocks during market fluctuations. This makes PFF an excellent diversification tool when combined with DIVO and SPHD, creating a three-pronged approach to retirement income.

Combining DIVO, SPHD, and PFF creates a robust retirement income portfolio that addresses multiple investment objectives simultaneously. The trio offers exposure to different market segments—DIVO provides high-quality common stocks, SPHD delivers low-cost S&P 500 exposure, and PFF adds preferred securities with bond-like characteristics. Together, they create a diversified income stream from 536+ unique holdings across various asset classes and sectors.

The strategic combination allows retirees to benefit from monthly distributions while maintaining an average expense ratio below 0.44%. The funds’ focus on established companies and reduced volatility aligns with retirement investors’ need for capital preservation. By reinvesting dividends or taking distributions as cash, investors can tailor the approach to their specific retirement income requirements, creating a flexible solution that eliminates the need for active stock picking while providing regular, predictable income.