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The attract of an everyday dividend test dropping into your account each month is undeniably interesting. Think about that dependable stream of passive revenue effortlessly supplementing your monetary wants.

However, like all good issues on this planet of finance, there are constraints and concerns. For starters, the vast majority of dividend-paying shares distribute their rewards solely as soon as 1 / 4.

Furthermore, inserting all of your passive revenue hopes on a single inventory, or perhaps a handful, could be a dangerous gamble. Market fluctuations, company-specific points, or broader financial challenges can dent your dividend goals.

At this time, I’ll highlight three exchange-traded fund (ETF) choices that not solely distribute dividends on a month-to-month foundation but additionally boast above-average yields: actual property funding trusts (REITs), a set of strong Canadian dividend shares, and an fascinating play involving coated calls on Canadian banks.

Prepared to seek out out simply how a lot it’s essential spend money on every to realize that coveted $500 month-to-month dividend? Hold studying to seek out out. Remember that these calculations are an approximation and don’t account for the impact of potential taxes and buying and selling prices.

REIT ETF

My choose right here is BMO Equal Weight REITs Index ETF (TSX:ZRE). This ETF holds 22 Canadian REITs in equal allocations and pays out a 5.53% annualized distribution yield as of September 30, 2023.

To obtain round $500 each month in dividends from ZRE, an investor must make investments $108,600.25, assuming the present month-to-month payout and share worth as of October 6, 2023, stays constant:

Dividend ETF

My choose right here is BMO Canadian Dividend ETF (TSX:ZDV). This ETF holds 52 Canadian dividend shares weighted by yield and pays out a 4.62% annualized distribution yield as of September 30, 2023.

To obtain round $500 each month in dividends from ZDV, an investor must make investments $127,716.84, assuming the present month-to-month payout and share worth as of October 6, 2023, stays constant:

Coated name ETF

My choose right here is BMO Coated Name Canadian Banks ETF (TSX:ZWB). At current, this ETF holds all six large Canadian financial institution shares in equal weights with a coated name overlay to generate revenue and pays out a 7.93% annualized distribution yield as of September 30, 2023.

To obtain round $500 each month in dividends from ZWB, an investor must make investments $67,797.09, assuming the present month-to-month payout and share worth as of October 6, 2023, stays constant: