Where to invest for a monthly income?


Editorial team Published on

Certain investments distribute cash flow every month instead of quarterly or annually.

Real Estate Investment Trusts (REITs)

  • What they are: Companies that own or finance income-producing real estate and must distribute at least 90% of taxable income to shareholders.
  • Examples: Realty Income (ticker: O) and STAG Industrial (ticker: STAG).
  • Pros: Steady rental income without property management.
  • Cons: Vulnerable to real estate market drops and interest rate shifts.

Monthly Dividend ETFs

  • What they are: Funds holding a basket of stocks, bonds, or option strategies that bundle and pay distributions monthly.
  • Examples: JPMorgan Equity Premium Income ETF (JEPI) or Global X Nasdaq 100 Covered Call ETF (QYLD).
  • Pros: Instant diversification and high yields via covered calls.
  • Cons: Subject to market risk and variable payouts.

Bond Funds and Fixed Income

  • What they are: Portfolios of government or corporate debt that collect and distribute interest monthly.
  • Examples: Short-term Treasury ETFs or multi-asset income funds.
  • Pros: Lower volatility than individual stocks.
  • Cons: Lower potential returns and sensitivity to changing interest rates.

High-Yield Savings and CDs

  • What they are: Cash accounts and certificates that credit interest monthly.
  • Pros: Extremely safe with FDIC insurance.
  • Cons: Rarely beat long-term inflation.