The Dow is at record highs… the S&P 500 is soaring… and everybody's suddenly talking about a new bull market. It sure feels good! But smart investors know this party won't last forever. The Fed is playing a dangerous game with rate cuts, inflation is stickier than a cheap popsicle, and geopolitical turmoil is brewing.
That's why, now more than ever, you need rock-solid income you can count on no matter what happens in the market. You need investments that don't depend on the whims of the Fed or the fickle confidence of Wall Street.
Traditional “Dividend Kings” are fine, but their yields are stuck in the 3%-4% range…. and you get those measly payments just once a quarter.
Today, I want to show you an investment that's paying out a 7.5% yield… delivering cash into your account every single month… and outperforming the market while it's at it.
Meet the JPMorgan Equity Premium Income ETF (JEPI).
Monthly Income Like Clockwork
JEPI is unlike any traditional dividend stock. It's an actively managed ETF with a unique strategy designed to generate massive income even when the market is flat… or even slightly DOWN.
Here's how it works: The fund invests in a basket of high-quality, large-cap U.S. stocks… similar to what you'd find in the S&P 500. But JEPI's managers don't just sit around collecting those quarterly dividends. They use an options strategy called “covered calls” to squeeze extra income out of their holdings. This strategy is relatively safe and provides consistent cash flow.
The results have been outstanding:
- 12-month rolling dividend yield of 7.55% (Source: JPMorgan: Accessed October 13, 2024)
- 30-day SEC yield of 6.88%
- Year-to-date returns of 13.5% (as of October 6, 2024) (Source: 24/7 Wall St: Accessed October 13, 2024).
For context, that yield is crushing traditional income plays like REITs (4.4%), the U.S. 10-Year Bond (4.4%), and typical dividend stocks (1.3%).
And get this: JEPI pays those dividends monthly, so your income stream arrives like clockwork!
Active Management: Outsmarting the Market?
Now, I know what you're thinking… “Active management? You're always telling us index funds are the best!”
And you're right! For long-term growth, low-cost index funds are unbeatable. But for generating income, a skilled active manager can squeeze out extra returns that passive funds can't touch.
JEPI's managers are experts in using covered calls to generate income. They're constantly monitoring their holdings, adjusting their options strategy, and seeking out the best opportunities to maximize cash flow. This kind of hands-on approach is essential in today's turbulent market.
Is JEPI Right for You?
JEPI isn't for everyone. If you're chasing risky growth stocks or looking for a wild rollercoaster ride, this might not be your cup of tea.
But if you're a dividend investor looking for…
- High yield
- Consistent monthly income
- A strategy that can outperform in a volatile market
…Then JEPI deserves a serious look.
Coming tomorrow: We'll explore the international market and uncover 3 high-yield plays that are profiting from China's economic woes! You won't want to miss this…
