These 3 ETFs (DIVO, JEPI, QDVO) Are Your Dividend Safety Net

"If you are hunting dividend investing strategies, you may want to ensure you don't overlook ETFs as they are a surefire way to gain exposure to a wide basket of stocks while also generating passive income. We have uncovered a trio of ETFs that are equipped to serve as your dividend safety net, with a strategy of paying distributions while also injecting some stability into your portfolio, a dose of options-related risk notwithstanding."

"The Amplify CWP Enhanced Dividend Income ETF (DIVO) is a balance of income stability and some sophisticated trading techniques. It's ideal for investors hunting steady cash flow from dividend stalwarts like Caterpillar (NYSE: CAT) Microsoft (Nasdaq: MSFT), Home Depot (NYSE: HD), among others. The strategy involves cherry picking a select group of high-quality stocks that prioritize shareholder value through dividends, then attempts to amplify returns through a fancy covered-call approach by selling options on those holdings to bring in extra cash."

"But rather than swinging for the fences, DIVO targets a smoother ride than the wider market, with a combination of dividend and option income to cushion that inevitable market volatility including sell-offs. Launched in 2016, the ETF is up 18% YTD. It is built to follow the Enhanced Dividend Income Portfolio (EDIP), which is run by sub-adviser Capital Wealth Planning, giving investors unique access to an expert dividend-and-options playbook."

Three ETFs—Amplify CWP Enhanced Dividend Income ETF (DIVO), JPMorgan Equity Premium Income ETF (JEPI), and Amplify CWP Growth & Income ETF (QDVO)—offer diversified exposure to dividend-paying stocks while generating passive income. The ETFs employ options-related techniques, including covered-call strategies, to boost distributions and add downside cushioning at the cost of options-related risk. DIVO selects high-quality dividend stalwarts like Caterpillar, Microsoft, and Home Depot, sells options on holdings to increase cash flow, and pays monthly dividends with a current yield near 5.6%. The trio delivers yields roughly between 4% and 9% and aims to provide reliable income with added stability.

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