This 9.44% Dividend Stock Pays Cash Every Single Month

Sure, monthly dividend stocks are great. But what if you can get some of the best dividend stocks out there from one ETF and still get payouts monthly?

| More on:
Paper Canadian currency of various denominations

Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investing in monthly dividend stocks has long been a popular strategy for those seeking consistent income. Imagine having a reliable source of income flowing into your account every month. It’s like a financial cushion that offers comfort and stability. Yet, while monthly dividend stocks are a fantastic tool, there’s an even better option for those who want to combine convenience, diversification, and high yield: monthly dividend exchange-traded funds (ETFs).

Why these work

Monthly dividend ETFs take the best features of dividend-paying stocks and wrap them in a neat package of diversification. By investing in an ETF, you aren’t tied to the fortunes of a single dividend stock. Instead, your investment is spread across a basket of stocks, meaning the risk of any one company cutting its dividend is mitigated. This diversification is especially appealing to income investors who want to avoid the hassle of monitoring individual stocks. Monthly dividend ETFs are professionally managed, giving you peace of mind while you focus on other priorities.

Enter Harvest Diversified Monthly Income ETF (TSX:HDIF), one of the most compelling options in the Canadian market. HDIF is a standout because it doesn’t just hold stocks. It’s a fund of funds, meaning it holds other ETFs that generate high monthly income. This strategy amplifies diversification while employing covered call strategies, which enhance income potential. In simpler terms, HDIF combines an array of income-generating ETFs under one roof and uses sophisticated strategies to boost your monthly payouts.

Let’s dive into the details of HDIF. As of today, HDIF is trading at $8.92 per unit, offering an attractive yield of approximately 9.44%. With such a high yield, you’re looking at serious cash flow for your portfolio. The dividend stock has delivered a strong performance this year, with a year-to-date total return of 22.18%. Over the past year, it has returned an impressive 27.20%, highlighting its ability to weather market fluctuations while delivering consistent payouts.

Created with Highcharts 11.4.3Harvest Diversified Monthly Income ETF PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Buying HDIF

The portfolio composition of HDIF is a key factor behind its success. Its top holdings include the Harvest Brand Leaders Plus Income ETF, Harvest Equal Weight Global Utilities Income ETF, and Harvest Healthcare Leaders Income ETF, among others. Each of these ETFs employs covered call strategies to enhance income, and their combined sectors include technology, financial services, healthcare, and utilities. This diverse allocation ensures HDIF is not overly reliant on any single industry, spreading risk and tapping into multiple growth areas.

Looking forward, the outlook for HDIF remains bright. Its diversified portfolio and income-focused strategies position it well for the future. Covered call strategies, a cornerstone of HDIF’s approach, are particularly effective in volatile markets, as they generate income even when stock prices are flat or declining. With a range of underlying ETFs targeting different sectors, HDIF is well-equipped to adapt to shifting market dynamics, providing both growth and income opportunities for investors.

For those seeking monthly income, HDIF offers a hassle-free solution instead of manually picking individual dividend stocks. This requires research and ongoing monitoring, so HDIF simplifies the process. It’s an excellent choice for anyone who values diversification, professional management, and consistent income. Whether you’re looking to supplement your retirement income, reinvest dividends, or simply enjoy a steady cash flow, HDIF ticks all the right boxes.

Bottom line

While monthly dividend stocks are great for generating income, monthly dividend ETFs like HDIF elevate the experience to a whole new level. They provide diversification, mitigate risks, and offer the convenience of professional management, all while delivering attractive yields. With its strong track record, diversified holdings, and high monthly payouts, HDIF stands out as a perfect option for income-focused investors. If you’re ready to turn your portfolio into a reliable income engine, HDIF might just be your ideal co-pilot.

Should you invest $1,000 in Endeavour Silver Corp. right now?

Before you buy stock in Endeavour Silver Corp., consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Endeavour Silver Corp. wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,697.16!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Dividend Stocks

Dividend Stocks

3 Canadian REIT Stocks to Buy and Hold for the Next Quarter-Century

These three Canadian REITs trade cheaply and are highly reliable, making them some of the best stocks you can buy…

Read more »

A train passes Morant's curve in Banff National Park in the Canadian Rockies.
Dividend Stocks

1 Practically Perfect Canadian Stock Down 24% to Buy Now and Hold for Life!

CNR stock is a top Canadian stock for investors, especially with shares down on the TSX today.

Read more »

Canada national flag waving in wind on clear day
Dividend Stocks

The Best Canadian Stocks to Buy Right Away With $30,000

If you have $30,000 you're willing to invest, these are some of the first Canadian stocks to consider on your…

Read more »

rail train
Dividend Stocks

What to Know About Canadian Pacific Railway Stock for 2025

CP stock has now gone through a major merger, so what do investors have to look forward to?

Read more »

ways to boost income
Dividend Stocks

Top Canadian Value Stocks I’d Buy for Dividend Growth and Appreciation

If you are looking for income and capital appreciation, here are three Canadian value stocks for a great total return…

Read more »

coins jump into piggy bank
Dividend Stocks

The Smartest Canadian Stock to Buy With $2,000 Right Now

The company’s powerful combination of growth, income, and value, positions it well to deliver solid returns, making it a smart…

Read more »

Transparent umbrella under heavy rain against water drops splash background. Rainy weather concept.
Dividend Stocks

This 10.6 Percent Dividend Stock Pays Cash Every Single Month

Are you looking to invest for a rainy day? This 10.6% dividend stock pays cash every month, irrespective of the…

Read more »

A worker gives a business presentation.
Dividend Stocks

Market Dip: Opportunity or Risk This April?

This market dip might have investors worried, but should they be excited instead?

Read more »