ETFs That Distribute Dividends Every Month: Your Path to Dollar Income

Earning money while sleeping is the dream of many investors. For those looking to establish a steady income in hard currency without dealing with the exchange rate volatility of the real, monthly dividend ETFs have become a powerful tool. Especially for Brazilians seeking protection against domestic inflation and still-high interest rates, diversification through international securities has gained significant space in portfolios.

The beauty of these funds lies in their simplicity: you buy shares of a single asset and, every month, receive dollar-denominated income deposited into your account. No need to build a complex portfolio of American stocks, no prohibitive costs, just clean exposure to the North American market with a predictable cash flow. For those truly building wealth, this is gold.

How Monthly Dividend ETFs Work: The Cash Flow Generation Machine

Dividend-paying ETFs are not just simple stock baskets. They are machines specifically designed to systematically generate income.

A monthly dividend ETF pools dozens or hundreds of assets selected based on well-defined criteria: companies with a solid track record of profit distribution, high cash flow, defensive sectors, or those prioritizing shareholder returns over aggressive growth.

The key difference is that these funds distribute their earnings monthly — not annually like many stocks. This means you receive regular payouts instead of a large deposit once a year. For those who truly want to live off passive income in dollars, this regularity makes all the psychological and financial difference.

Most of these ETFs include companies from stable sectors: utilities (energy and water companies), telecommunications, real estate via REITs, and financial institutions. The reasoning is simple: mature businesses generate predictable cash flow and can return profits consistently to shareholders without compromising operational growth.

The money deposited monthly into your brokerage account comes in dollars, allowing you to reinvest, convert to reais according to your strategy, or simply let it accumulate.

The 6 Best ETFs for Passive Income in Dollars: Comparison and Analysis

The industry of dividend-paying ETFs offers a range of options. Each with its own philosophy, risk level, and yield potential.

QYLD: The Yield Champion (13.17% per year)

If the goal is maximum gross yield, QYLD is practically unbeatable among ETFs.

Launched in 2013 by Global X, QYLD employs a sophisticated strategy: it buys all Nasdaq-100 stocks and sells call options on the index simultaneously. The premiums from these options become monthly dividends credited to your account.

Key Data:

• Price: ~US$ 17.47
• Assets Under Management: US$ 8.09 billion
• Dividend yield (12m): 13.17% per year
• Management fee: 0.60% per year
• Composition: Technology (56%), Communications (15%), Consumer (13%)

The portfolio is dominated by giants like Apple, Microsoft, NVIDIA, Amazon, and Meta — market movers.

The trade-off is clear: in rising markets, QYLD lags behind. The sold options limit capital gains. But if your goal is income, this disadvantage becomes an advantage during volatility — when the fund shines by offering stability.

( JEPI: The Balance Between Income and Security )8.4% per year###

For those who want to sleep peacefully receiving dividends, JEPI is the smart choice.

Created in 2020 by JPMorgan, JEPI combines high-quality S&P 500 stocks with structured derivatives to generate income without excessive volatility.

Key Data:

• Price: ~US$ 57.46
• Assets Under Management: US$ 40 billion (the largest dividend ETF in the world)
• Dividend yield (12m): ~8.4% per year
• Management fee: 0.35% per year
• Beta relative to S&P 500: 0.56

The fund selects between 100 and 150 value stocks with low volatility, favoring defensive sectors: Healthcare, Basic Consumption, Industrial. Companies like Coca-Cola, AbbVie, UPS, and PepsiCo form the core.

The result is reliable passive income in dollars with only 56% of the overall market volatility. It’s the fund for those who don’t want to get too emotional looking at the chart.

( SDIV: Global Diversification )9.74% per year###

Want income in dollars but also exposure to the whole world? SDIV is your gateway.

The Global X SuperDividend ETF distributes monthly dividends gathering 100 global stocks with the highest yields and controlled volatility. Created in 2011, it is the veteran among these options.

Key Data:

• Price: ~US$ 24.15
• Assets Under Management: US$ 1.06 billion
• Dividend yield (12m): 9.74% per year
• Management fee: 0.58% per year
• Distribution: Monthly in dollars

The composition is geographically spread: United States (25%), Brazil (15%), Hong Kong (12%), plus Canada, UK, and other emerging markets. Sector-wise: Financials (~28%), Energy, Real Estate (~13%).

The risk here is that very high yields are often accompanied by weak fundamentals. Companies may cut dividends. It’s a choice for those with stomach for volatility in exchange for yield.

( DIV: The Defensive US Focus )7.30% per year###

If you only want US stocks but with a focus on stability, DIV is the way.

The Global X SuperDividend U.S. ETF replicates an index selecting 50 American stocks with the highest dividend yields and low historical volatility. Launched in 2013, it’s a perfect complement for those seeking dollar income without exposure to emerging markets.

Key Data:

• Price: ~US$ 17.79
• Assets Under Management: US$ 624 million
• Dividend yield (12m): 7.30% per year
• Management fee: 0.45% per year
• Average volume: ~240 thousand shares/day

The portfolio is heavily defensive: Utilities (21%), REITs (19%), Energy (19%), Basic Consumption (10%). Technology? Practically zero.

The disadvantage is precisely that — in rising markets, you miss opportunities. There’s also the risk of “yield traps”: companies paying high but in decline. When dividends are cut, drops are sharp.

( SPHD: The S&P 500 Smart Beta )3.4% per year###

For investors wanting income from the S&P 500 but with intelligence, SPHD offers a sophisticated approach.

Launched in 2012 by Invesco, the fund selects 50 S&P 500 companies combining high dividend yield with low historical volatility. Rebalancing occurs semiannually (January and July).

Key Data:

• Price: ~US$ 48.65
• Assets Under Management: US$ 3.08 billion
• Dividend yield (12m): ~3.4% per year
• Management fee: 0.30% per year
• Volume: ~700 thousand shares/day

Composition: REITs (23%), Basic Consumption (20%), Utilities (20%), with presence in Healthcare and Telecommunications.

The yield is lower because the fund prioritizes quality and stability over gross profitability. It’s the choice for those who want to sleep well without sacrificing too much cash flow.

( PFF: Preferred Stocks )6.55% per year###

Neither common stock nor debt security — preferred stocks occupy a unique space. PFF from iShares (BlackRock), launched in 2007, is the gateway to this asset class.

Key Data:

• Price: ~US$ 30.95
• Assets Under Management: US$ 14.11 billion
• Dividend yield (12m): ~6.55% per year
• Management fee: 0.45% per year
• Volume: ~3.5 million shares/day

The fund replicates an index with over 450 issues — mainly large financial institutions: JPMorgan, Bank of America, Wells Fargo. Banks and insurers make up over 60% of the portfolio.

Preferred stocks pay fixed dividends, usually monthly, with lower volatility than common stocks. The big danger? Sensitivity to interest rates. When the Fed raises rates, the value of these stocks drops because new issues become more attractive.

It’s a defensive asset for those seeking passive dollar income but with a clear understanding of the risks.

How to Start Investing in Dividend-Paying ETFs

The process is simpler than it seems.

( Option 1: International Brokers

The most direct way is to open an account with international brokers that provide access to US exchanges. Several popular options among Brazilians include Interactive Brokers, Nomad, Avenue, Stake, BTG Pactual, among others.

The process is straightforward: open a dollar account, transfer funds )many have facilitated currency exchange partnerships###, and buy shares of the ETFs you choose. Dividends are credited monthly in dollars to your account.

( Option 2: BDRs of ETFs on B3

A more local alternative is investing in BDRs )Brazilian Deposit Receipts### representing American ETFs. Some ETFs already have BDR versions on B3 — like IVVB11, which tracks the S&P 500.

The problem? There are no specific BDRs for ETFs that pay monthly dividends yet. Also, taxation and distribution delays can be higher. It’s not the most efficient route for those seeking dollar passive income.

What Makes a Dividend ETF Attractive to Brazilian Investors

Passive income in dollars solves a real problem: Brazilians earn in reais, but inflation constantly erodes their purchasing power. Investing in assets that pay in strong currency offers protection.

ETFs that distribute monthly dividends are simple, transparent, and accessible machines. You don’t need to be an expert in the American market. Professional management is embedded within the ETF. The cash flow is automatic.

For those truly building wealth, combining passive dollar income with capital growth, these funds are key pieces. The trick is to choose the right combination according to your risk profile, volatility tolerance, and actual income goals.

Start slowly, monitor movements, and let time work in your favor.