The article emphasizes the importance of dividends in enhancing investor returns, citing that they have contributed significantly to overall market performance over decades. It explains how dividend-focused strategies can provide stability and consistent income, making them ideal for uncertain economic conditions. Highlighting the JPMorgan Nasdaq Equity Premium Equity Income ETF (JEPQ), which has a notable yield of 12.42% with a low expense ratio, the piece suggests that such investments can offer a reliable income stream in turbulent market times.
While at times overlooked, dividends have played a substantial role in investor returns over the past several decades. From 1960 through the end of last year, roughly 85% of the S&P 500 Index's cumulative total return can be attributed to reinvested dividends and the power of compounding. Dividend-focused strategies provide the potential for better stability, consistent income, and a hedge against economic uncertainty for all-weather portfolios.
With an expense ratio of 0.35%, the JPMorgan Nasdaq Equity Premium Equity Income ETF (NASDAQ: JEPQ) carries a monthly yield of 12.42%. It also generates income by selling options and by investing in U.S. large-cap growth stocks.
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