BING-JHEN HONG NVIDIA (NVDA) plunged 10% last Friday for its worst session since March 2020. The move came on no major news but concerning earnings reports and outlooks from overseas semiconductor companies such as Taiwan Semiconductor (TSM) and ASML Holding (ASML) tempered the once-hot industry. Chip stocks command about a 10% weight in the S&P…
Jacob Wackerhausen/iStock via Getty Images Covered call strategies have been all the rage in the ETF world as traders and investors look to juice up income with options overlay. One of the more interesting funds doing this is the REX FANG & Innovation Equity Premium Income ETF (NASDAQ:FEPI). FEPI is an innovative investment product that…
da-kuk REX FANG & Innovation Equity Premium Income ETF (NASDAQ:NASDAQ:FEPI) is a relatively fresh covered call ETF that was established back in November, 2023. Since the inception, it has managed to keep up with the well-performing S&P 500 delivering attractive distribution income from the written options. Ycharts During this time period, FEPI has even slightly…
BlackJack3D/E+ via Getty Images What Is The Blackrock Science And Technology Trust? The BlackRock Science and Technology Trust (NYSE:BST) is an equity closed-end fund that invests in the technology sector. The fund has performed well since its inception in 2014, beating a variety of equity benchmarks along the way. Managed by BlackRock, the world’s largest…
metamorworks Stellus Capital Investment Corporation (NYSE:SCM) is a well-managed business development company with a focus on middle-market companies. The BDC just released earnings for the last quarter which showed that the dividend remained well-covered by core net investment income. The BDC still profits from a higher-rate environment, thanks to an aggressive floating-rate posture, and Stellus…
Dilok Klaisataporn The Nuveen S&P 500 Dynamic Overwrite Fund (NYSE:SPXX) invests in S&P 500 components and writes covered calls on 35% – 75% of its holdings. Doing so boosts the fund’s distribution yield to 7.6%, but moderately reduces potential capital gains. SPXX’s strategy seems reasonably sustainable, with fund distributions and NAVs seeing positive growth since…
Scott Olson Thesis Kenvue Inc. (NYSE:KVUE) represents an ideal candidate for a low-risk income-producing strategy of writing covered calls to enhance the dividend. In a previous article, I discussed how the riskiness of the underlying investment changes covered call option choices. The company operates in the highly stable Personal Care Products subsector of the economically…
oatawa BlackRock TCP Capital Corp. (NASDAQ:TCPC) is a well-managed business development company that has produced a high degree of excess dividend coverage in the last couple of years. The portfolio is well-diversified and management has handed investors a 13% increase in the regular dividend in the last year. Though I consider the discount to net…
Foryou13 Blackstone Inc. (NYSE:BX) is a profitable and internationally-diversified asset management company with multiple fee streams. The asset manager just reported earnings for its fourth quarter that exceeded expectations in terms of distributable earnings. Blackstone has a solid history of growth under its belt and the company comfortably covered its dividend with distributable earnings throughout…
Bet_Noire The First Trust Enhanced Equity Income Fund (FFA) is a closed-end fund that income-focused investors can use to achieve their goal of producing a high level of current income from the assets in their portfolios without the need to sacrifice the upside potential of common equities. As is the case with most funds that…
Torsten Asmus Welcome to another installment of our CEF Market Weekly Review, where we discuss closed-end fund (“CEF”) market activity from both the bottom-up – highlighting individual fund news and events – as well as the top-down – providing an overview of the broader market. We also try to provide some historical context as well…
Jenhung Huang The Eaton Vance Tax-Advantaged Global Dividend Income Fund (NYSE:ETG) is a closed-end fund, or CEF, that can be employed by investors who are looking to earn a high level of income from the assets in their portfolios without sacrificing the upside potential that comes with investing in common equities. The fact that this…
Torsten Asmus Credit Suisse X-Links Crude Oil Shares Covered Call ETNs (NASDAQ:USOI) is a unique product for investors looking to speculate on the price of Crude Oil. It does so by buying the front month futures and selling covered calls as described below. The Credit Suisse Nasdaq WTI Crude Oil FLOWSTM 106 Index (the “Index”)…
champpixs Listen above or on the go via Apple Podcasts or Spotify. How should investors construct their portfolios? Rob Isbitts on playing offense and defense in the market (0:47). Treasuries, T-bills and portfolio staples (7:30). Issues with covered call ETFs (17:30). Transcript Rena Sherbill: Rob Isbitts, welcome back to Investing Experts. It’s great to have…
bin kontan One of the best income stocks that passive income investors can find in the high-yield market right now is Rithm Capital (NYSE:RITM), in my view. The mortgage trust is well-diversified, is actively working on adding new revenue streams and just comes out of a very profitable and successful third quarter. The Sculptor Capital…
GuidoVrola/iStock via Getty Images This article series aims at evaluating ETFs (exchange-traded funds) regarding the relative past performance of their strategies and metrics of their current portfolios. Reviews with updated data are posted when necessary. KNG strategy and portfolio FT Cboe Vest S&P 500® Dividend Aristocrats Target Income ETF (BATS:KNG) was listed on 3/26/2018 and…
photobyphm Verizon Communications Inc. (NYSE:VZ) is suffering a new period of stock price weakness which, in my view, is a compelling opportunity, particularly for passive income investors, to gobble up some shares for their portfolios. Verizon just fell through its 50-day moving average line and some investors are having doubts, unjustifiably, about the company’s dividend…
Auseklis/iStock Editorial via Getty Images Acadia Realty Trust (NYSE:AKR) last declared a quarterly cash dividend of $0.18 per share, in line with its prior payment and for a 4.8% dividend yield. The internally managed equity REIT has dipped by 8% over the last 1-year with a quarterly dividend that sits around 11 cents below its…
dikushin/iStock via Getty Images Co-authored with Treading Softly. When it comes to building a portfolio, it can usually be divided into two types of portfolio designs. The first is someone who focuses solely on having quality investments. They will have very few holdings, but every single one of them, they will believe, has diamond-like qualities….