Most dividend stocks and dividend ETFs pay quarterly, and this creates awkward gaps if you’re trying to cover monthly expenses. It’s thus a good idea to look into monthly dividend ETFs.
You’d want to hold the best-in-class monthly dividend stocks, as you can then make them serve two purposes at once: both defense and income.
This may mean sacrificing a little on the yield and on the upside during rallies, but these ETFs will start making a lot of sense during downturns. Even if you are a growth investor, it’s worth having monthly dividend ETFs to hold together your portfolio and compound on the side. Let’s take a look.
This post originally appeared at 24/7 Wall St.