Does JEPI pay monthly dividends?
JEPI has a dividend yield of 7.69% and paid $4.26 per share in the past year. The dividend is paid every month and the last ex-dividend date was Apr 1, 2024.
How often does JEPI pay a dividend?
While most dividend stocks pay out a dividend on a quarterly basis, JEPI pays them monthly, so its payout schedule aligns nicely with our objectives of making a monthly mortgage payment.
How does JEPI pay such a high dividend?
It's important for investors to understand that JEPI is not a pure equity ETF, it's a covered call ETF, which generates a high yield by selling call options against holdings within the portfolio.
Is JEPI good for income?
According to analysts, JEPI is a good investment for investors who want to reduce the volatility of their portfolio without compromising returns. An ETF like JEPI, in moderate amounts, can be a good choice for sophisticated investors, retirees, and those following the FIRE movement.
Do you pay taxes on JEPI dividends?
JEPI may be tax-inefficient, as distributions from the fund may be taxed as income, and dividends from underlying stock holdings are not considered qualified because of the offsetting options positions. JEPI isn't eligible for Tax-Loss Harvesting, since we can't find a viable alternate fund.
What ETF has 12% yield?
| Symbol | Name | Dividend Yield |
|---|---|---|
| SURI | Simplify Propel Opportunities ETF | 12.19% |
| SDIV | Global X SuperDividend ETF | 12.12% |
| SPYI | NEOS S&P 500 High Income ETF | 12.07% |
| TYLG | Global X Information Technology Covered Call & Growth ETF | 12.02% |
Is JEPI long term?
JEPI can be a good investment for more experienced, risk-averse investors who are looking for an ETF that can provide low-volatility, stocklike returns with superior yields. However, JEPI may not be for beginners or long-term investors.
What is the downside to JEPI?
Reason #1 To Avoid JEPI: Its Expense Ratio Is Rather High
One reason why JEPI is not a great choice for retirees is that its 0.35% expense ratio is rather high compared to many other passive income funds. For example, SCHD's expense ratio is only 0.06%.
What could go wrong with JEPI?
I've heard some people complain that JEPI doesn't use a traditional covered call strategy where it owns the stocks & writes the call simultaneously and the use of ELNs introduces counterparty risk where it wouldn't otherwise.
Is JEPI a safe long term investment?
However, it is important to note that JEPI is not a safe ETF by any means. A covered call strategy can buffer against losses, but only to the amount of premium received. It is not a true hedge, and still exposes investors to more or less the same downside risk.
Is JEPI or SCHD better?
When comparing JEPI and SCHD, you would pick the ETF with the higher Sharpe ratio since that means you are getting better risk-adjusted returns on your investment. It is pretty clear from the graph below that JEPI has the more attractive Sharpe ratio.
Is JEPI yield sustainable?
JPMorgan Equity Premium Income ETF (NYSEARCA:JEPI) is designed primarily for income-focused investors as it pays a monthly dividend. Based on its relatively attractive 8.3% payout, it's expected to be a core holding of income investors looking to focus on generating a sustainable monthly dividend.
Is JEPI good for a Roth IRA?
To unlock greater income potential in a Roth IRA, investors can opt for a derivative income fund such as JEPI, which uses more complex options selling strategies to produce higher-than-average yields.
Why is JEPI so popular?
So over the past two years, JEPI has outperformed the market during bad times and lagged the market during good times while still producing double-digit annualized returns and paying its investors a monthly dividend, which pretty much sums up its value proposition for investors.
Is JEPI a good dividend stock?
JEPI's 7.5% yield is substantial. Not only is it significantly higher than the average yield for the S&P 500 (currently just 1.4%), but it's also much higher than the risk-free yield offered by investing in 10-year treasuries (currently 4.2%). The monthly payout is also an attractive feature.
Is JEPI tax inefficient?
Despite JEPI's total performance in Q1 being "only" 1.31% below SPYI's, this doesn't take into account their Equity Linked Notes -- a very tax-inefficient way to generate income for shareholders.
What are the top 5 ETFs to buy?
| ETF | Assets Under Management | Expense Ratio |
|---|---|---|
| Vanguard Information Technology ETF (VGT) | $70 billion | 0.10% |
| VanEck Semiconductor ETF (SMH) | $16.3 billion | 0.35% |
| Invesco S&P MidCap Momentum ETF (XMMO) | $1.6 billion | 0.34% |
| SPDR S&P Homebuilders ETF (XHB) | $1.8 billion | 0.35% |
What ETF has the highest ROI?
| Symbol | Name | 5-Year Return |
|---|---|---|
| FNGO | MicroSectors FANG+ Index 2X Leveraged ETNs | 43.94% |
| TECL | Direxion Daily Technology Bull 3X Shares | 34.92% |
| SMH | VanEck Semiconductor ETF | 30.83% |
| ROM | ProShares Ultra Technology | 29.51% |
What is the best dividend paying ETF?
- BlackRock Equity Dividend MADVX.
- Capital Group Dividend Value ETF CGDV.
- ClearBridge Dividend Strategy LCBOX.
- Columbia Dividend Income CDIRX.
- Fidelity High Dividend ETF FDVV.
- FlexShares Quality Dividend ETF QDF.
- Franklin U.S. Low Volatility High Dividend ETF LVHD.
Why not buy JEPI?
JEPI Under The Covers
The covered call exposure is offered by counterparties, which comes with credit risk and counterparty exposure that may not be expected by most investors. The level of risk is likely small in normal market conditions, but has potential meaningful implications in "black swan" situations.
Is JEPI still a good buy?
Their recent payouts were impressive: JEPI's 12-month yield was 11.7% at the end of 2022, compared with only 1.7% for the S&P 500 index. The majority of this yield came from selling one-month calls on the S&P 500 and paying out all the proceeds, or call premiums.
Is JEPI a good investment 2024?
But that's not the only thing to consider for JEPI in 2024 - as many "price action analysts" are predicting a modest pullback this year after rate cuts go into effect during the second half of the year. If you're in this camp, perhaps JEPI will be able to provide your portfolio with stability amid the volatility.
Is SPYI better than JEPI?
JEPI's total returns were 9.81% with price returns of 0.90% over the same period. SPYI remains a consistent outperformer within the category and has a management fee of 0.68%.
What is the JEPI option strategy?
JEPI represents a portfolio of large-cap stocks that is combined with selling call options to generate monthly income. The objective, like for all covered call strategies, is to offer index-like returns with lower volatility but higher dividends.
What is better than JEPI?
JEPQ holds 81 stocks, and its top 10 holdings account for 58.7% of assets. Therefore, JEPQ is much more concentrated than JEPI, where the top 10 holdings make up just 17.5% of assets. For instance, its top two holdings, Microsoft and Apple, combine to make up almost 25% of the fund.
