Some stocks have dividends better than market yield. In particular that's why I started with QYLD, which has a 12% dividend payout.

...and lower total shareholder returns, which was my point

where are those indices at compared to pre pandemic versus the market average when factoring dividends in? even over the long term stocks and ETFs that pay high dividends have negligible SP appreciation

For a really long time growth outpaced value stocks. What people forget though is there tends to be some sort of cyclicality here. There's value in being diversified. My portfolio is growth slanted but the value side has carried my water at least for the last few months.

I would probably be flat to slightly down for the year if I didn't have like 30% of my money in value-type stocks.

Personally, my favorite type of companies have a value flavor to them and pay like a 2-3% yield but have some sort of potential growth catalyst.

For example, a company I've had for a long time is Bunge (BG). Bought it at 40 now it's almost 90. At current levels it still only has a p/e of 11*...and a nice 2.3% div. To me it's still a good company with growth catalysts because it's a play on the inflation of food.

Another name is QSR but I sold out of that like an idiot awhile back and now the pe is too hot for me.

This post was edited by ofthevoid on May 6 2021 04:30pm

I'm nearly 70% value, but it's a mistake to lump in value stocks with covered call ETFs. It's not an undervalued company that may or may not pay high dividends, but a hedge against a bear market

Didn't realize that's what specifically you were talking about.

Yeah IMO, not a huge fan of complex financial instruments like that. I trade options but with time I plan to stop. I rather own an underlying stock than try to make money with more complex strategies that I'm not familiar with.

Is that a complex financial instrument? It's just an ETF that owns the NASDAQ top 100 and sells covered calls to generate dividend revenue.

The problem with selling covered calls is you limit your gains and putting some cap on them. What if good news drops on any one of those companies? Your shares are being called away and someone else is seeing the upside depending on how far from the strike that price rose.

Yep, thems the brakes.

So you want big up side or consistent income. Choose one.

Nasdaq is inherently a growth index though. Why are you looking to collect income on that when there are much simpler ways to do it?

Look at the y/y performance of QYLD. Up 10.37%+ 11.73dividend approx 22% performance. In contrast QQQ (basically main Nasdaq 100 ETF) is up 51%.

5 year performance:


QYLD 3.3% + whatever dividends
QQQ 213%


Do you see how you're shortchanging yourself?

I know how calls work and how they cap gains.

Yes, it seems this fund isn't as good as just buying a regular Nasdaq index and running with it. Although half of those gains were over the past year. In a huge bull market then the covered call strategy isn't going to perform as well as buy and hold. Really nothing is

If we look at the 4 year priod running up to the major 2020 bull run (stopping in February) then with dividend reinvestment QQQ did 223% and QYLD did about 170%.

So yep, looks like just holding a regular thing like QQQ is prefereable even when we're not in the weirdness that is the 2020 stock market. Good to know.


Looked into it more and their strategy is to write at the money calls with 30 DTE. WHY? That's like it's designed to be a shit strategy.

This post was edited by Thor123422 on May 6 2021 08:11pm