Global X Nasdaq 100 Covered Call ETF - A Great Way To Receive Monthly Dividend Income
πππDividend Income is a great way to achieve passive income while waiting for capital growth. $NASDAQ 100 Covered Call ETF(QYLD)$ does that rather well with 12% Distribution Yield paid monthly.
How does QYLD do this you may ask?
QYLD seeks to generate income through covered call writing, which historically produces higher yields in periods of volatility. In fact QYLD has made monthly distributions 9 years in a row. QYLD does the heavy lifting by writing call options on the Nasdaq 100 Index, saving investors the time and potential expense of doing so individually.
The Top 10 holdings include $Apple(AAPL)$
Meta Platforms, Broadcom, Google, Tesla and Adobe.
Total number of holdings is 102.
The expense ratio is 0.60%.
Performance wise QYLD is up 2.6% in the past 5 days and 6.9% year todate.
Wall Street Analysts are bullish on QYLD with a Buy rating , Target price of USD 20.40, an upside potential of 25%.
However it must be noted that Nasdaq 100 Index is up 39% year todate. That is the price we pay for receiving regular dividend income with reduced equity volatility.
What I like about QYLD is that it has a proven record of paying dividends 9 years in a row and it was established since December 11, 2013. QYLD has a market capitalisation of USD 7.66 billion. Writing call options on a regular basis is normally the domain of experienced traders or institutions. QYLD offers small investors like me the opportunity to enjoy the benefits of regular dividend income without taking the risk of options trading.
Best of all QYLD is low cost, minimises my risk on buying individual stocks and provides me with a great source of passive income while waiting for capital growth. That's my favourite kind of investing.
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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Woohoo 12% ...yeah after subtraction 30% still have 8.4% is good for me too [Miser] [Miser] [Miser]
Is it really a good way to get monthly dividend income? Think about it.
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Great ariticle, would you like to share it?