To The Moon

🌟🌟🌟When the markets are Bearish, I seek comfort in Dividends.  JEPI $JPMorgan Equity Premium Income ETF(JEPI)$  does it particularly well as it has a laser focus to deliver monthly distributable income and stock market exposure with less volatility.

JEPI uses a Covered Call Options Strategy to generate the monthly income.  This is usually the domain of big institutions and expert traders.  JEPI is the largest Actively Managed ETF in the US with Assets Under Management of USD 36.64 billion and a favourite with dividend seeking income investors like me.

JEPI also has one of the lowest Expense ratio of 0.35% for an actively managed ETF.   That is an important consideration as it puts more money into my pocket.

JEPI curates its  portfolio by selecting stocks from the S&P 500 Index using its proprietary risk adjusted stock rankings.  Then using Covered Call Options Strategy, JEPI generates its distributable monthly income. 

The Top 10 holdings include $NVIDIA Corp(NVDA)$  , Trane Technologies, $Meta Platforms, Inc.(META)$  , Progressive Corp, Mastercard Inc, Abbvie, Southern Co.,$Amazon.com(AMZN)$  , ServiceNow and $Microsoft(MSFT)$  . 

The Top 10 weightage is 18%.  Total number of holdings is 119.  Dividends are paid monthly.  The current dividend yield is 8.18%.

I like that JEPI's Fund Manager is JPMorgan, the largest US Bank with market capitalisation of USD 631.40 billion.  JEPI's portfolio managers are Hamilton Reiner and Raffaele Zingone, both with a combined  70 years of experience in the financial industry between them. 

JEPI goes ex dividend on November 1 2024 with a pay date of November 5 2024.  

Performance wise JEPI is down 0.78% on Thursday trading and 1.6% in the past 5 days.  However JEPI is up 6.4% year todate.  It has risen 11.5% in 2023.  If we look back to JEPI's inception date in May 20 2020, JEPI is up 17%.

Wall Street Analysts are bullish on JEPI with Buy rating, an average Target price of USD 65.04, an upside potential of 10%.  This is according to 119 Analysts surveyed by Tipranks. 

I have been dollar cost averaging into JEPI as I love collecting dividends.  Dividends are a  great source of passive income for me.  It is like collecting money while I sleep.  However for those who are seeking high growth in stocks, JEPI may not be suitable.  This is because Covered Call Strategy may impact growth.  So it all depends on each individual as everybody has different goals.  

Nonetheless JEPI has been awarded a Morningstar 5 star rating under Derivative Income Category.  I find comfort when I know that I will be collecting JEPI 's dividends every month whether the market is up or down.  

JEPI is my Dividend Oasis in good times and bad times. 

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