We all know about the importance of compound interest. But today’s article takes this topic to a new level by discussing something even more powerful. And that’s the concept of monthly passive income.

Why is this important?

Because it allows you to reinvest faster and more efficiently. Plus, it provides a better situation for anyone hoping to live off their investments.

I’ll explain.

Passive income is great. And getting dividend checks feels fantastic. However, many stocks and index funds only payout on a quarterly basis.

This makes it hard to live off your returns, since you’re always waiting several months for your next payment.

Luckily, there is a solution: monthly dividend payments.

Getting paid constantly makes it easier to live off your investments, and it makes it easier for you to reinvest your earnings back into the market.

Because you’re getting paid so often, you never have to worry about stretching your cash until the next quarter.

This is great news for retirees and dividend investors alike.

However, not all monthly funds are created equal. And because of this, I want to share one of the safer and more reliable opportunities that I’ve personally found. This is my opinion and not investment advice, so do your own research before taking any action.

With that out of the way, my favorite monthly fund is a well-regarded ETF know as SPHD.

And below you’ll find a rundown of everything you need to know.

Building Monthly Passive Income With SPHD

The Invesco S&P 500 High Dividend Low Volatility fund is exactly what it sounds like. This is an ETF that’s heavily invested in real estate, utilities, and large-cap stocks.

The result?

You’re paid steady monthly dividends every 30 days.

Currently, each SPHD payout is around $0.14. This means you’re making about $1.68 per year, or enjoying a meaty 4% annual dividend.

This is great if you’re looking to build up a stable source of residual income.

Additionally, you can always reinvest your earnings, using this money to buy up more SPHD shares and continue portfolio’s growth.

My Investment Strategy

(Getting Paid Every Single Month)

Personally, I’m taking a few of my existing passive income streams (ones you can read about right here) and reinvesting them into SPHD.

Then, I’m taking these monthly dividends and buying even more shares.

This results in me collecting a cool $400 each year in dividend payouts.

A pretty good chunk of change, and overall nice addition to my existing dividend funds.

Closing Thoughts

Monthly passive income is amazing. This steady cash-flow lets you pay your bills or further your investments.

There are many ways to create an income stream like this, but the Invesco S&P 500 High Dividend Low Volatility is my personal favorite. It offers higher returns than competing ETFs, while still enjoying a safe and stable growth rate.

The perfect combination for any dividend I looking to build wealth.

P.S. Want to buy and sell stocks with no commission fee? Then check out the Robinhood App. This is a terrific trading platform that let’s you trade stocks with absolutely no brokerage charges or hidden fees.