How Much You Need in These 3 Monthly Dividend ETFs to Double the Average Social Security Check

How Much You Need in These 3 Monthly Dividend ETFs to Double the Average Social Security Check

David Beren

Sat, August 15, 2026 at 4:51 PM GMT+3 7 min read

Quick Read

• JEPQ's ~14% yield requires only $351,000 to double the average Social Security check, while JEPI's 7.6% yield demands $650,000 for the same target.

• PFFA's preferred-stock income is driven by credit and interest rates, not equity volatility, making it the most diversifying addition for investors with existing stock exposure.

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The average retired worker collects roughly $2,071 a month from Social Security after the 2.8% cost-of-living adjustment that took effect in January. Doubling that check means producing about $4,142 a month, or close to $49,700 a year, from a separate income stream. Three monthly-paying ETFs stand out as candidates to shoulder that work: JPMorgan Equity Premium Income ETF (NYSEARCA:JEPI), JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:JEPQ), and Virtus InfraCap U.S. Preferred Stock ETF (NYSEARCA:PFFA).

Each fund delivers income through a different mechanism. JEPI and JEPQ sell index call options on top of equity portfolios and pass the premium through as monthly distributions. PFFA holds preferred securities and layers on borrowed capital to boost the payout. The result is three very different yield levels, three very different principal requirements, and three very different risk profiles for anyone trying to match or exceed a Social Security check.

JEPI: The Conservative Core Holding

A defensive basket of U.S. large caps is what JEPI pairs with an equity-linked note that writes out-of-the-money S&P 500 calls. The equity sleeve is deliberately lower volatility than the index itself, and the call overlay converts market choppiness into cash flow. The top ten positions are diversified across sectors, led by Broadcom at 1.8%, Ross Stores and Amazon at 1.7% each, and names like Apple, Alphabet, NVIDIA, Eaton, AbbVie, and EOG Resources. No single holding tops 2%, which keeps single-stock risk contained.

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At a recent price near $58, the fund pays roughly $4.40 per share on an annualized forward basis, which works out to a yield of about 7.6%. To generate the yearly income target at that rate, an investor would need to hold about $650,000 in JEPI. That is the largest principal requirement of the three, and it is the direct cost of buying the least volatile package. The fund returned about 12% over the past year, including distributions, with an expense ratio of 0.35%.

The tradeoff here is fairly direct: call writing caps upside in rallies, and the monthly payout swings with option premiums. Distributions in 2026 have ranged from $0.34 to $0.45 per share, so budgeting on a smooth monthly number is unrealistic. JEPI is the choice for a retiree who wants equity-linked income with a softer ride than the S&P 500 and is willing to fund the larger balance to get it.

JEPQ: The Highest-Yield Way to Get There With Less Capital

Against the Nasdaq-100, JEPQ runs the same option overlay playbook. The tech-heavy underlying names carry higher implied volatility, which allows the fund to sell richer call premiums and push distributions well above what JEPI pays out. Recent months illustrate that gap clearly, with the August 2026 payment coming in at $0.70 per share, up from $0.64 in July, and both figures dwarfing the roughly $0.44 to $0.47 range seen during the summer of 2025.

Annualized forward distributions amount to about $8.46 per share at a price near $60, yielding roughly 14%. At that rate, the $49,700 income target requires about $351,000 of capital, roughly $300,000 less than JEPI. That is the highest yield and the smallest principal requirement on this list, which is why it belongs here despite the tech concentration.

The catch is the underlying beta. JEPQ delivered a 21% total return over the past year, flattering the fund on the way up and previewing the drawdowns that will show up on the way down. A Nasdaq-heavy portfolio with an option overlay still owns tech risk; the calls smooth income, not principal. Anyone using JEPQ as an income anchor should expect the monthly checks to compress in a bear tape and the account value to move more than JEPI's.

PFFA: The Contrarian Preferred-Stock Pick

The odd one out on this list is PFFA, and that is exactly why it earns a spot here. The fund holds preferred securities issued by banks, REITs, midstream operators, and utilities, then applies modest leverage to boost the payout. NPORT data shows the fund carrying $606 million in liabilities against $2.35 billion in net assets, financing exposure across more than 300 individual preferred positions. Top holdings include Flagstar Bank, Banc of California, Energy Transfer, First Citizens BancShares, and KKR preferreds, each sitting around 2% of assets.

The fund distributes $0.1725 per share every month, an annualized $2.07 per share. At a price near $21, the forward yield is close to 10%. Producing the doubled Social Security income requires about $501,000 in PFFA, slotting the fund between JEPQ and JEPI in terms of capital efficiency.

What sets PFFA apart is the source of return. Preferred distributions are largely rate and credit-driven rather than option-premium-driven, meaning the fund's income does not require equity volatility to remain healthy. Monthly payouts have climbed slowly from $0.15 in 2020 to $0.1725 today, a stability profile the covered-call funds cannot match. The 2.11% expense ratio reflects the cost of running a leveraged, actively managed portfolio, and leverage cuts both ways: it magnifies income in stable rate environments and magnifies price drawdowns when credit spreads widen or preferreds sell off. Concentration in financials and REITs adds a cyclical layer that JEPI's diversified equity book lacks.

Choosing Between the Three

The three funds sit on a spectrum. JEPQ requires the least capital and offers the most upside participation, but it hands the investor Nasdaq-level volatility. JEPI takes the most capital and delivers the smoothest equity ride, useful for investors who plan to draw income for decades and cannot tolerate large drawdowns in the account balance. PFFA sits in the middle on capital, does not depend on equity volatility for its payout, and is the most sensitive to interest rates and credit.

An investor who already owns broad equity exposure elsewhere may find PFFA the most diversifying addition, since preferreds behave differently from either the S&P 500 or the Nasdaq-100. Someone building an income sleeve from scratch and comfortable with tech beta can reach the doubled-check target with the smallest check to the brokerage using JEPQ. And investors who want the closest thing to a defensive equity income holding, at the cost of a larger starting balance, will land on JEPI.

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