Dividend payments are a great form of hassle-free income: Just buy a stock that pays a dividend, sit back, and collect your “cash.” But some investors think that dividends come too infrequently. After all, most companies pay dividends on a quarterly basis. Before we get to the SoFi Weekly Dividend ETF review, consider how weekly dividends would work. This article may contain affiliate links which means that – at zero cost to you – I might earn a commission if you sign up or buy through the affiliate link.

How to Get Weekly Dividends What if I told you that you could get dividends every week? It’s actually quite simple. All you have to do is buy 12 or more different dividend stocks and ensure that every company pays its dividends staggered exactly one week apart from one another. Of course, I’m joking. Finding such a set of dividend equity securities or stocks – and performing the due diligence for those companies (doing the research to ensure the companies are financially sound and able to provide dividend sustainability – i.e., ensuring the companies won’t suddenly cut their dividends due to fundamental business issues) – is a monumental task even for the experienced individual. Fortunately, you have an easier way to create a fixed income via weekly dividends, you might buy the Sofi Weekly Dividend ETF (WKLY).

About the SoFi Weekly Dividend ETF A common complaint from dividend investors – especially those using dividends as a significant source of income – is that the time between dividend payments is unrealistically long, considering that most people have monthly, not quarterly, bills. The SoFi Weekly Dividend ETF was created to address this complaint. The SoFi Weekly dividend ETF lives up to its name by making weekly dividend payments to investors. The WKLY ETF worries about stock dividend growth, so you don’t have to.

How Does SoFi WKLY Work? SoFi WKLY is a passively managed fund, which means that it is meant to mirror an index. The benchmark index is the SoFi Sustainable Dividend Index, which is defined and tracked – according to the fund’s SEC filing – as follows:
The Index follows a rules-based methodology (described generally below) that tracks the performance of the equity securities of publicly-traded, large- and mid-capitalization U.S. and non-U.S. companies in developed markets that are selected based on a set of sustainable dividend filters.
The Index is owned and administered by Solactive AG (the “Index Provider”), and the Index Provider partnered with Social Finance, Inc. (“SoFi”) to co-develop the methodology used by the Index to determine the securities included in the Index. SoFi is not involved in the ongoing maintenance of the Index or any discretionary decisions relating to its application, and does not act in the capacity of an index provider. SoFi has licensed certain of its trademarks to the Index Provider for use in connection with the Index. SoFi Weekly (WKLY) Prospectus – SEC Document

Thus, SoFi WKLY buys and holds the equity securities in the SoFi sustainable dividend index, collects those stocks’ dividend payments, and distributes the dividends on a weekly basis to the owners of the SoFi Weekly Income ETF.

What is the SoFi Sustainable Dividend Index? The official description of the SoFi Sustainable Dividend index is a bit convoluted. In layperson’s terms, the SoFi Sustainable Dividend index includes a set of companies that have successfully paid their dividends for the past twelve months and are expected to continue making dividend payments over the coming twelve months. In addition, the index is weighted by market capitalization and rebalanced quarterly, according to SoFi. Simply, the WLKY dividend ETF is a collection of dividend-paying companies that have been screened to have a high probability of continuing their dividend payments in the future.

SoFi WKLY Dividend ETF Details WKLY indeed distributes dividends to shareholders every week, on Thursday. WKLY has an expense ratio of 0.49%. The current weekly dividend payment is two cents per share. At the time of writing WKLY is trading at $45.88. All together, you are paying $51.36 for one share of WKLY, producing $0.02 (per share)*52 worth of dividend payments per year. As companies raise their dividend payments, your payouts should also increase. At present, WKLY’s annual dividend yield is 3.45%. In contrast, SPDR S&P 500 Trust ETF’s (SPY) 500 dividend yield is 1.56%. So, WKLY provides weekly dividend payments that are more than double the dividends paid by the aggregate of all companies in the S&P 500. This data is accurate today, and will change along with the price of the ETF. It’s useful to understand, that the dividend payment percent varies based upon the value of a stock, or fund. All other factors remaining constant, when a stock price declines, the dividend payout percent will increase, and vice versa.

What are the SoFi Weekly (WKLY) Dividend ETF Holdings? If you take a look through either the SoFi Sustainable Dividend Index or at WKLY’s actual holdings, you’ll find a basket of companies that have a number of commonalities. These companies have the following characteristics: Liquid: Heavily traded in the stock market (and thus easy to buy and sell) Mature: Most sustainable dividend companies have long histories Mid-cap or larger: The minimum market cap for inclusion in the index is $1B Reasonable payout ratio: