"You're probably familiar with the NASDAQ 100 stock index, which includes a slew of heavy hitters in the technology sector. A few prominent examples of NASDAQ 100 members are Apple ( NASDAQ:AAPL), NVIDIA ( NASDAQ:NVDA), Microsoft ( NASDAQ:MSFT), Amazon ( NASDAQ:AMZN), Meta Platforms ( NASDAQ:META), and Broadcom ( NASDAQ:AVGO). These large-cap tech firms are famous and profitable, but they aren't known for paying huge dividends. Consequently, yield hunters might not be interested in buying a basket of NASDAQ 100 stocks."
"The NEOS NASDAQ-100 High Income ETF provides indirect exposure to roughly 100 stocks in the NASDAQ 100 index, but with a twist. To appease avid dividend collectors, the QQQI ETF uses sophisticated options-trading strategies, including writing covered calls, to produce extra income. That extra income can be substantial. Currently, the NEOS NASDAQ-100 High Income ETF advertises an expected annualized distribution rate of 14.28%."
Achieving double-digit annual dividend yields is difficult when selecting individual stocks, but certain ETFs target yields of 10% or more. The NEOS Nasdaq-100 High Income ETF (QQQI) offers indirect exposure to roughly 100 NASDAQ-100 companies while employing sophisticated options strategies, including writing covered calls, to boost income. The NASDAQ-100 contains large-cap technology firms such as Apple, NVIDIA, Microsoft, Amazon, Meta Platforms, and Broadcom, which typically pay modest dividends. The ETF currently advertises an expected annualized distribution rate of 14.28%, making it appealing to investors with large cash positions seeking substantial cash payouts, though high yields carry attendant risks.
Read at 24/7 Wall St.
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