"For income investors who are tired of "safe" 2% or 3% yields, the current market offers a variety of different ETFs that are paying well above 5%. The good news is that these are not obscure funds or risky bets, they are established products with clear strategies to generate elevated income. The tradeoff, as always, is that earning higher yields adds to your risk profile than a lower-yield offer."
"What matters most as you evaluate the different ETFs on this list is understanding where the income comes from. Some are going to feature traditional dividend stocks from around the world, while others use option strategies to boost payouts. Understanding the different income mechanisms will help you, as an investor, set realistic expectations for both sustainability and growth. JPMorgan Equity Premium Income ETF"
"The JPMorgan Equity Premium ETF ( NYSE:JEPI) has become one of the most popular income ETFs in the market, and the 8.19% dividend yield explains why. The $4.72 dividend you can earn annually is nothing to ignore, thanks to this ETF combining large-cap US stocks with a covered call strategy that generates premium income on top of more traditional dividends."
Various established ETFs now offer yields well above 5%, presenting higher income opportunities alongside increased risk. Income sources vary: some ETFs hold traditional dividend-paying stocks globally, while others employ option strategies to boost payouts. JEPI pairs large-cap U.S. stocks with a covered-call strategy, producing an 8.19% yield and a payout ratio showing reliance on options premiums, while also reporting an 11.94% growth rate and steadily rising distributions. SDIV yields 9.17%, pays monthly, and invests in the 100 highest-yielding stocks worldwide, providing broad international exposure and substantial monthly income.
Read at 24/7 Wall St.
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