There’s a version of income investing that most people will never discover because it’s not talked about like growth stocks. This income investing idea doesn’t have any of the usual financial drama, and you probably won’t find it popular on FinanceX.com, but it does pay you every month like a second job you don’t need to show up for. Consider this: Now try dividing $100,000 evenly among four specific ETFs, and you’ll earn more than $562 in monthly dividend income. That’s $6,755 per year, and you don’t have to sell any stocks to do it, nor take on any of the concentration risk that keeps most retirees awake at night.
The reason this works isn’t some financial wizardry but has to do with asset diversification, and most investors chasing dividend income buy stock-based dividend funds and call it a day. This may be beneficial to some, but it also means that all of your income responds to the same market forces at the same time. When, not if, but when your stock sells off, your dividend income will feel it. The same is true when interest rate expectations change, as your entire portfolio will move in the same direction. Instead, it would be smarter to add income from different sources, such as U.S. stock dividends, stock income enhancement through options, preferred stocks, and high-yield corporate bonds, so that if one layer comes under stress, other layers may hold on and even benefit.
That’s exactly where a four-ETF allocation comes in, as each option below draws income from a different layer of the capital structure, meaning they don’t respond equally to market pressures or changes in interest rates. What you end up with is not just more income than Treasury bonds or a savings account, but income that is durable and can continue to flow through different types of markets, which can impact other strategies that rely on a single asset class.
The Global What you really get is real exposure to real businesses that generate real cash flow, such as REITs, financials, utilities and energy companies that prioritize returning capital to shareholders.
The current yield is 6.76% and it pays an annual dividend of $1.28 per month, which means investing $25,000 would equate to earning $140 per month. While that doesn’t seem like a lot at first glance, considering the ETF’s dividend growth rate is 23.21%, it’s a meaningful number that suggests the company in question is increasing its payouts, rather than just maintaining them. This argument becomes even more concrete when you look at the payout ratio of 87.26%, which suggests the dividend is well covered.
During a downturn, a high-dividend stock fund like the Global X SuperDividend US ETF may face price pressure if the underlying companies are economically sensitive, so it’s not recession-proof. However, the fund tends to benefit directly in a rate-cutting environment, as lower rates lower borrowing costs in dividend-intensive sectors like REITs and utilities, making their dividends more sustainable and their valuations more attractive.
read: Data shows one habit can double Americans’ savings and boost retirement
Most Americans vastly underestimate how far they will need to retire and overestimate how ready they are. But the data shows a person with a habit Those who have saved more than twice as much as those who have none.
The Amplify CWP Enhanced Dividend Income ETF (NYSE: DIVO ) takes a different, selective move approach in that instead of holding the highest-yielding stocks it can find, the ETF starts with a carefully curated portfolio of high-quality large-cap companies with strong earnings histories. Try considering those blue-chip stocks that have proven to be able to sustain their dividends through market volatility and then incorporate them into a covered call strategy, which buys calls on individual positions to collect premium income, thereby increasing overall yields well beyond what the underlying stock would bring alone.
The current yield of 6.37% provides annual dividends of $2.88, which equates to approximately $133 per month on a $25,000 investment. What really makes this ETF stand out is its dividend growth rate of 49.82%, an extraordinary number that reflects both the quality of the underlying assets and the growth in income one can earn from option premiums, which increase over time.
During an economic downturn, the Amplify CWP Enhanced Dividend Income ETF will outperform most equity income funds because its underlying assets are high-quality businesses with durable earnings. These companies are the last to cut their dividends and recover quickly. The covered call strategy may raise eyebrows, but it does add a cushion for those on the fence, as premium income can continue even if the stock price doesn’t move. In a rate-cutting environment, ETFs are somewhat neutral because the options strategy is driven by greater volatility rather than the direction of interest rates, which effectively adds a layer of income stability independent of what the Fed does in any given time period.
Most individual investors have heard of preferred stocks but don’t actually own any, which means they don’t have access to a reliable layer of income at all. The Global Preferred shares rank higher than common shares in the capital structure, meaning preferred shares are paid out before common shareholders in dividends and liquidations, which can mean more income stability than most stock funds can provide.
As of mid-March 2026, the Global Assuming you invest $25,000 in this ETF, your account will receive approximately $135 in monthly payouts. Dividend growth was negative at -3.73%, and it’s worth noting that preferred stocks don’t grow in the same way as common stock dividends because they’re structured more like fixed-income instruments. In other words, you hold this ETF for its current income and capital stability, not for its ever-increasing expenses.
ETFs really earn their spot on this list during periods of decline, when stocks sell off. Preferred securities are more likely to hold their value better than common stocks because their income is contractually more stable. In a rate-cutting environment, the Global This is the opposite behavior of high-yield equity funds, which is exactly the diversification this allocation is designed to capture.
The State Street SPDR Portfolio High Yield Bond ETF (NYSE: SPHY ) brings something to the table that the other three funds on this list don’t offer, in that it provides fixed-income cash flows that are structurally decoupled from stock performance. It holds a basket of U.S. high-yield corporate bonds, which are really just debt issued by companies that are below investment grade and pay higher interest rates to compensate for any additional credit risk. The result is a yield that is much higher than what investment-grade bond funds offer, while making monthly payments and tying them to interest payments rather than stock market conditions.
At the current yield of 7.43%, an annual dividend payment of $1.72 per month is equivalent to earning $155 per month in dividends on a $25,000 investment without having to sell any shares. This marks the State Street SPDR Portfolio High Yield Bond ETF as the best performer on the list. Of course, it’s important to note that its dividend growth rate is -5.02%, which reflects the fixed-income nature of the fund. Bond interest payments don’t grow, but they are set up for issuance, and in this case, investors in this ETF are here for yield and ongoing income, not appreciation.
During an economic downturn, high-yield bonds may face wider credit spreads, meaning prices can and will fall as investors digest higher default risks. The State Street SPDR Portfolio High Yield Bond ETF holds hundreds of bonds across industries because the risk to a single issuer is minimal and income continues to flow even if prices change. In a rate-cutting environment, the State Street SPDR Portfolio High Yield Bond ETF benefits significantly when interest rates fall and existing bond prices rise, allowing the fund’s price to appreciate on top of the income it is already generating.
If you allocate $100,000 to all four funds, or $25,000 in each fund, you’ll earn a total of about $563 per month, or $6,755 per year. It’s important to note that all of this money is income, not principal. By comparison, putting $100,000 in a high-yield savings account with an interest rate of 4.20% would only generate $350 per month, or a 10-year Treasury note with an interest rate of 4.28% would only pay out about $357 per month. This allocation will generate over 60% more monthly income than either alternative, while drawing income from four different asset classes that respond differently to market stress.
Most Americans vastly underestimate how far they will need to retire and overestimate how ready they are. But data shows that people who have a habit will have more than double Savings for those who don’t.
No, it has nothing to do with increasing your income, saving, cutting coupons, or even reducing your lifestyle. It’s simpler (and more powerful) than any of them. Frankly, it’s shocking that more and more people aren’t adopting this habit, considering how easy it is.
