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Living off dividends sounds great, but it’s not easy. To earn significant dividends, you need to invest a large amount into high-yielding stocks/ETFs and constantly monitor your risks and losses. The last thing you want on your dividend investing journey is to lose money.
Thousands of successful investors share their experiences and advice on Reddit’s daily dividend investing discussion board. We came across an interesting discussion where a Redditor shared that he earns $4,000 in dividends every month. They provide complete details of their portfolios, historical returns, and key investments.
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The Redditor claims to make $4,000 per month with an initial investment of $150,000. Most portfolios contain high-risk closed-end call ETFs and very high-yield income funds. We select some of the most important funds from our portfolio and explain their income generating strategies.
YieldMax AI Option Income Strategy ETF
YieldMax AI Option Income Strategy ETF (NYSE:AIYY) is a closed call ETF that provides investors with indirect exposure to C3.ai, Inc. How do these ETFs generate income? ETFs sell call options on the stocks they own (in this case, C3.ai) and generate a premium, which is distributed to investors.
YieldMax AMD Option Income Strategy ETF historical value in US Dollar
The YieldMax™ AMD Option Income Strategy ETF (AMDY) is another covered call ETF that generates monthly income with a distribution rate of around 38%. The final payout was $0.4306 per share. The ETF provides indirect exposure to AMD stock.
S&P 500 Enhanced Options Income ETF
S&P 500 Enhanced Options Income ETF (JEPY) is one of the reliable high income ETFs that produces healthy distributions every month. This is another covered call ETF, but instead of focusing on a single company, JEPY provides exposure to the broader S&P 500 index. JEPY is suitable for investors looking for stable income with low volatility.
Nasdaq 100 Enhanced Options Income ETF
The Nasdaq 100 Enhanced Options Income ETF (QQQY) produces a sizeable distribution, despite the risk. ETFs sell in-the-money put options on the Nasdaq 100 every day, meaning the option’s strike price is higher than the current market price of the index. This strategy sacrifices capital gains from Nasdaq stock price appreciation in return for a high options premium.
QQQY is suitable for investors looking for more income and willing to accept a cap on the market’s potential gains. The ETF has a distribution rate of about 71%.
Don’t miss:
YieldMax NVDA Option Income Strategy ETF Stock price history
YieldMax NVDA Option Income Strategy ETF (NYSE:NVDY) makes money by selling call options on Nvidia. ETFs have seen a lot of popularity lately amid all the buzz around Nvidia. The ETF has a distribution ratio of about 63%. Analysts believe that NVDY is suitable for those who believe in Nvidia’s long-term potential but want to control the possibility of a decline in the chipmaker’s stock.
Defiance S&P 500 Income Target ETF historical value in US Dollar
The Defiance S&P 500 Income Target ETF (SPYT) invests in an ETF that tracks the performance of the S&P 500 and sells a daily credit call spread on the Index. This means that ETFs sell call options and buy others at a higher price, earning income from the premium they receive. The ETF has a distribution rate of about 20% and pays monthly.
Rex Fang & Innovation Equity Premium Income ETF
Rex Fang & Innovation Equity Premium Income ETF (NASDAQ:FEPI) generates monthly income by writing call options on top Big Tech companies. The fund uses Big Tech’s “volatility” to generate income. The ETF has 15 stocks, including Salesforce, Tesla, Adobe, Amazon and Nvidia. The ETF’s distribution rate is approximately 25%.
Looking For More Earning Opportunities?
Today’s high interest rate environment has created an incredible opportunity for investors looking for income to get great results, but not through dividend stocks … opportunities and Benzinga have identified some of the most attractive options for you to consider.
For example, EquityMultiple’s Ascent Income Fund targets stable income from senior commercial real estate debt positions and has a historical distribution yield of 12.1% supported by real assets. With payment priorities and flexible liquidity options, Ascent Income Fund is a foundational investment vehicle for income-focused investors. First-time investors with EquityMultiple can now invest in Ascent Income Fund with a minimum of $5,000. Benzinga Readers: Get a 1% return boost on your first EquityMultiple investment when you sign up here (accredited investors only).
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This article Dividend Investors Earning $4000 Every Month Sharing Top 7 Portfolio Holdings originally appeared on Benzinga.com
