The article explores the potential of dividend stocks and ETFs that generate passive income, focusing on two funds: Amplify CWP Enhanced Dividend Income ETF (DIVO) and JPMorgan Nasdaq Equity Premium Income ETF (JEPQ). While both funds offer high yields, DIVO is deemed a better choice for many investors due to its structure. In contrast, JEPQ provides greater diversification with about 100 stocks and a tech-heavy portfolio, making it more suitable for tax-advantaged accounts. This analysis aims to guide investors in choosing between these two ETFs based on various financial metrics.
However, there is a growing collection of ETFs that boost cash flow by selling covered calls on their positions, allowing fund managers to realize more cash distributions.
While DIVO is the better choice for most people, JEPQ is suitable for tax-advantaged retirement accounts and individuals seeking greater diversification.
Collection
[
|
...
]