These are not only some of the highestpaying dividend funds you'll find but will put cash in your pocket every single month. I've screened for the best monthly dividend ETFs for those over 10% dividend yield. The list of dividend funds is a great start to any portfolio.

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I'll reveal those five monthly dividend funds to buy in the video but wanted to share four things to watch for when investing in dividend stocks.

First is you’ll notice a lot of these highyield dividend funds are CEFs or closedend funds . Now I’m not usually a fan of these because fees tend to be above 1%, so much higher than ETF fees but they can still provide good income so I won’t totally write them off the list. I did a full video on closedend funds that I’ll link to in the description below. Make sure you watch that if you’re going to be investing in these but just make sure you compare the expense ratio on any fund you buy.

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The most obvious point you want to check is the fund’s dividend history and growth. A lot of these highyield monthly payers will be the type that pay out all of their income as dividends so that payout is going to fluctuate from monthtomonth. Be ready for that but you still want to look for funds that are able to grow the dividend over time.

One thing dividend investors always seem to forget, especially when looking at these highyield funds is to check out the stock price history as well . Now I understand, the idea is to hold these forever and keep collecting that dividend but if you ever do need to sell then it’s nice to know you can still get something on the shares…that the stock price hasn’t been totally destroyed and eaten up a lot of the dividend return you collected.

Finally here, look at the investment theme and ask yourself if this is a theme that can do well in the current economy. For example, on the Nasdaq Covered Call fund, it will do well if tech stocks are flat or rising slightly but will underperform that Nasdaq index if tech stocks take off. It also won’t protect you from much if tech stocks crash.

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Joseph Hogue, CFA spent nearly a decade as an investment analyst for institutional firms and banks. He now helps people understand their financial lives through debt payoff strategies, investing and ways to save more money. He has appeared on Bloomberg and on sites like CNBC and Morningstar. He holds the Chartered Financial Analyst (CFA) designation and is a veteran of the Marine Corps.