4 SAFE High Yield ETFs - Pay My BILLS Every Month!

Summary

The video discusses building a dividend growth portfolio for long-term income, focusing on ETFs that pay dividends monthly or quarterly with potential for capital appreciation. The speaker shares their strategy of reinvesting dividends and their goal to cover fixed expenses with dividend income in the future. Four high-yielding dividend ETFs are highlighted: Amplify CTP Enhanced Dividend Income ETF (DVO), S&P 500 High Income ETF (SPYD), Simplify Volatility Premium ETF (SBO), and JP Morgan NASDAQ Equity Premium Income ETF (JEQ). Each ETF is analyzed for its yield, strategy, and potential for growth, offering viewers options to diversify their income generation.

Takeaways

• 😀 The speaker has been building a long-term dividend growth portfolio for about six to seven years, focusing on stocks and ETFs that pay dividends and have potential for price growth.
• 💰 The primary goal is to generate enough dividend income to cover fixed expenses on a monthly basis, which is not yet achieved but is a future aim.
• 📈 The speaker currently reinvests around $6,500 per month into more dividend-paying stocks and ETFs, with a plan to use dividend income for bills and travel in the future.
• 🏦 The video discusses four high-yielding dividend-paying ETFs that the speaker has been investing in and plans to use for monthly bill payments.
• 🌟 The first ETF mentioned is DVO (Amplify CWP Enhanced Dividend Income ETF), which offers a relatively cheap expense ratio and pays dividends monthly with a distribution rate of around 4.81%.
• 🚀 The second ETF is SPII (SPDR S&P 500 High Income ETF), which has gained interest for its 12% starting yield and strategy involving tax loss harvesting and SPX index options.
• 📊 The third ETF is SBO (Simplify Volatility Premium ETF), which provides inverse fixed exposure and a dynamic hedge, aiming to balance high income with volatility drag.
• 💼 The fourth ETF is JEPQ (J.P. Morgan NASDAQ Equity Premium Income ETF), which uses a cover call strategy to generate consistent monthly income with less volatility and has grown significantly in price.
• 📚 The speaker offers a dividend investing ebook and a custom dividend tracker for those interested in tracking their progress towards dividend investing goals.
• 🔗 The ebook and dividend tracker can be found at the first link in the video description, which details the speaker's journey from $0 invested to earning over $6,000 monthly and over $1 million invested.
• 📈 The speaker emphasizes the importance of choosing high-quality ETFs for both income generation and potential capital appreciation, which are key for covering future expenses.

Q & A

What is the main goal of the speaker's dividend growth portfolio?

The main goal is to generate enough dividend income to cover most of the speaker's fixed monthly expenses.

How long has the speaker been building their dividend growth portfolio?

The speaker has been building their portfolio for around six to seven years.

What does the speaker currently do with the dividend income they receive?

The speaker is currently reinvesting their dividend income, averaging around $6,500 per month, into more dividend-paying stocks and ETFs.

What is the speaker's future plan for the dividend income?

The speaker plans to use the dividend income to pay bills, travel, and other expenses in the future, possibly within 1 to 5 years.

What type of ETFs is the speaker discussing in the video?

The speaker is discussing high-yielding dividend-paying ETFs that offer both a nice starting yield and potential for capital appreciation.

What is the Amplify CWP Enhanced Dividend Income ETF (DVO) known for?

DVO is known for its relatively cheap expense ratio, monthly dividend payments, and potential for price growth over time.

What is the starting yield of the Amplify CWP Enhanced Dividend Income ETF (DVO)?

The starting yield of DVO is around 4.81%.

What makes the SPII S&P 500 High Income ETF unique?

SPII offers a massive starting yield of around 12% and employs a data-driven call option strategy, managed by NEOS, for tax efficiency and potential growth.

How does the Simplify Volatility Premium ETF (SBO) generate its dividend income?

SBO generates income by providing inverse fixed exposure to the CBOE Volatility Index (VIX) and implementing a dynamic hedge strategy with call options.

What is the expense ratio of the Simplify Volatility Premium ETF (SBO)?

The expense ratio of SBO is relatively high at 1.16%.

What strategy does the JP Morgan NASDAQ Equity Premium Income ETF (JEQQ) employ?

JEQQ employs a cover call strategy, buying a basket of equities and selling out-of-the-money NASDAQ 100 index call options to generate monthly income.

What has been the historical performance of the JP Morgan NASDAQ Equity Premium Income ETF (JEQQ) in terms of yield and price growth?

JEQQ has historically provided a consistent 7-8.9% yield per year and has shown significant price growth.

Outlines

00:00

💹 Building a Dividend Growth Portfolio

The speaker discusses their journey over the past six to seven years in constructing a long-term dividend growth portfolio, which includes a mix of stocks and ETFs that pay dividends on a regular basis. The primary goal is to generate sufficient dividend income to cover monthly fixed expenses. Currently, the speaker is reinvesting about $6,500 monthly into more dividend-paying assets, with the expectation of using the dividend income for bills and travel in the future. The video will focus on four high-yielding dividend ETFs that have been purchased over time and are expected to play a role in future financial planning. The speaker also promotes their dividend investing ebook and custom dividend tracker as resources for viewers interested in following a similar investment strategy.

05:00

🏦 High-Yielding Dividend ETFs for Income Generation

This paragraph delves into four specific ETFs that the speaker has been investing in, which offer high dividend yields and potential for capital appreciation. The first ETF mentioned is DVO, the Amplify CWP Enhanced Dividend Income ETF, known for its quality dividend-oriented stocks and a relatively low expense ratio, with a monthly dividend distribution rate of around 4.81%. The second is SPYN, the 500 High Income ETF, which has gained attention for its 12% starting yield and a strategy involving tax loss harvesting and SPX index options for income generation and potential growth. The third ETF, SBO, the Simplify Volatility Premium ETF, is discussed for its unique approach to providing inverse exposure and dynamic hedging with a focus on monetizing premiums in the VIX futures markets. Lastly, JEPQ, the JP Morgan NASDAQ Equity Premium Income ETF, is highlighted for its consistent premium income with lower volatility, managed by an experienced portfolio manager with a data-driven approach and a history of significant price growth alongside its dividend yield.

Keywords

💡Dividend Growth

Dividend growth refers to the increase in the dividend payments a company makes to its shareholders over time. In the context of the video, the speaker is building a portfolio that emphasizes dividend growth, aiming to generate increasing income from investments. The script mentions 'a long-term dividend growth, SL income Focus portfolio' which highlights the strategy of selecting investments that not only provide dividends but also have the potential to increase these dividends over time.

💡ETFs (Exchange-Traded Funds)

ETFs are investment funds that are traded on stock exchanges, similar to individual stocks. They typically track an index, sector, commodity, or a theme, and provide diversification to investors. The video discusses several ETFs that pay dividends and have potential for capital appreciation, such as 'the amplify cwp enhanced dividend income ETF' and 'the JP Morgan NASDAQ Equity premium income ETF', which are part of the speaker's strategy to generate monthly dividend income.

💡Capital Appreciation

Capital appreciation is the increase in the value of an investment or asset over time. In the video, the speaker is not only interested in the income generated by dividends but also in the potential growth in the value of the investments. The script mentions that the ETFs 'have the potential to grow in price over time', indicating that the speaker is looking for investments that can provide both income and potential capital gains.

💡Dividend Income

Dividend income is the money that an investor earns from dividends paid by the stocks or funds they own. The video's theme revolves around creating a portfolio that generates sufficient dividend income to cover monthly expenses. The speaker mentions reinvesting 'around $6,500 on average every single month back into more dividend paying stocks ETFs' and aims to use this dividend income to 'pay bills, travel, etc.'

💡Yield

In investing, yield refers to the income generated by an investment, typically expressed as a percentage of the investment's cost. The video discusses high-yielding dividend ETFs, such as 'a starting yield and also every, single one of these ETFs have the potential for capital appreciation', emphasizing the importance of yield in selecting dividend-focused investments.

💡Expense Ratio

The expense ratio is the annual fee that all investment funds charge their shareholders; it is expressed as a percentage of the fund's total assets. In the context of the video, the speaker mentions 'a relatively cheap expense ratio' for the Amplified enhanced dividend income ETF, indicating that lower fees can be beneficial for investors seeking to maximize their returns.

💡Cover Call Strategy

A cover call strategy involves an investor holding a stock and selling call options on that stock, typically out of the money, to generate additional income. The video mentions 'cover calls and individual stocks' in the Amplified ETF and 'written out of the money NASDAQ 100 index call options' in the JP Morgan NASDAQ Equity premium income ETF, highlighting the use of this strategy to enhance dividend income.

💡Tax Efficiency

Tax efficiency in investing refers to the strategy of minimizing the tax burden on investment returns. The video script mentions 'a tax efficient manner' in relation to the SPYN 500 High Income ETF, which uses a call option strategy that is subject to lower tax rates, thus allowing investors to keep more of their income.

💡Volatility

Volatility is a measure of the magnitude of price changes of an asset over time. The video discusses managing volatility through strategies like the Simplify Volatility Premium ETF, which 'seeks to mitigate extreme volatility' by providing inverse exposure to the CBOE Volatility Index (VIX) and using a dynamic hedge.

💡Monthly Distributions

Monthly distributions refer to the regular payments made by an investment to its shareholders, typically from the income generated by the investment. The video emphasizes the importance of monthly dividend payments as a way to cover fixed expenses, with several ETFs mentioned that 'offer income on a monthly basis', such as the Amplified enhanced dividend income ETF and the Simplify Volatility Premium ETF.

Highlights

Building a long-term dividend growth portfolio over six to seven years with a focus on income.

Aim to cover monthly fixed expenses with dividend income from the portfolio.

Currently reinvesting around $6,500 monthly into more dividend-paying stocks and ETFs.

Introduction of four high-yielding dividend-paying ETFs for potential future bill coverage.

Offer of a new dividend investing ebook and custom dividend tracker in the description.

Highlighting DVO, the Amplify CWP Enhanced Dividend Income ETF, for its monthly dividend and growth potential.

Discussing SPYN, the S&P 500 High Income ETF, with its attractive 12% starting yield and tax-efficient strategy.

Introducing SBO, the Simplify Volatility Premium ETF, for its unique approach to generating dividend income.

Detailing SBO's strategy involving inverse fixed exposure and dynamic hedging to balance income and volatility.

JEQ, the JP Morgan NASDAQ Equity Premium Income ETF, as a favorite for its consistent premium income and lower volatility.

JEQ's portfolio manager Hamilton R's three decades of experience in equities and equity derivatives.

JEQ's use of an applied data science approach for portfolio construction and option overlays.

The cover call strategy of JEQ for generating distributable monthly income with less volatility.

JEQ's exposure to the right holdings for growth potential alongside consistent yield.

Invitation for viewers to share their favorite ETF from the discussed options in the comments.

Encouragement for viewers to like, subscribe, and check out recent investment-related videos.

Transcripts

over the past several years around six

or seven years to be exact I've been

building out a long-term dividend growth

SL income Focus portfolio that's made up

of several different positions stocks

ETFs that all more or less pay me

dividends on a monthly or quarterly

basis but on top of that have the

potential to grow in price over time now

one of the main goals one of the main

things I'm personally solving for as a

dividend grow income Focus investor is

that I've been wanting to get my

dividend income to a point where on

average every single month I'm able to

take care of and pay most of my fixed

expenses with dividend income if I so

want to and even though as of right now

I'm currently not doing that I'm

currently reinvesting my around $6,500

on average every single month back into

more dividend paining stocks ETFs but

sometime in the future maybe one year

maybe 2 years maybe 5 years from now I

will in fact be using if not some maybe

a majority of my dividend income every

single month to do things like pay bills

travel Etc now in this video

specifically I'm going to be talking

about four high yielding dividend paying

ETFs that I've been buying for quite

some time now and that I'm planning on

using to cover my bills on a monthly

basis when of course day comes every

single one of these ETFs pays a nice

juicy starting yield and also every

single one of these ETFs have the

potential for capital appreciation on

top of that so if you're a dividend

focused investor looking to use some of

your income in the future to help cover

some fixed expenses or to pay for all

your bills make sure to stick around

drop a like down below and let's get

right into the first ETF real quick for

those that haven't already make sure to

go to the first link in my description

and grab my new dividend investing ebook

where I share exactly how I went from $0

invested to now earning over $6,000 on a

monthly basis and over over $1 million

invested in the Market along with the

ebook you're also going to receive my

custom dividend tracker where you can

track your dividend progress on an

ongoing basis and reach your dividend

investing goals so make sure to grab

yourself a copy of my dividend investing

ebook and the new dividend tracker today

it's the first link in my description

now the first higher yielding dividend

ETF that I've been buying for several

years now stacking well over 1,000

shares of throughout my portfolios is

dvo or the amplify cwp enhanced dividend

income ETF now right here on the amplify

ETF website in case you're not familiar

with EVO it says y invest in dvo income

potential which is exactly what we're

looking for comprised of high quality

dividend oriented stocks along with

cover calls and individual stocks now I

personally have been buying shares of

dvo for around three or so years now and

what I love about dvo is that it has a

relatively cheap expense ratio dvo has

grown in price nicely over time as far

as price return goes but also most

importantly especially for what we're

talking about for this video

specifically saying that we're trying to

look for high quality super highquality

dividend paid ETFs that offer income on

a monthly basis dvo offers a dividend

paid monthly with a distribution rate of

around 4.81% so although it isn't the

highest yield across the entire Market

dvo also does have some potential for

upside which is great and with a

starting yeld of around 5% I don't think

anyone's really complaining if you're

looking for a monthly paying dividend

focused ETF that also most definitely

has the potential for some upside

definitely check out dvo the Amplified

enhanced dividend income ETF the next

safe High yielding dividend focused ETF

that I've been buying like crazy over

the past few months and that's

definitely going to help me in the

future when it comes to paying bills

with my dividend income I'm talking

about

spyn 500 High income ETF now it's not

just me that's been talking about spii

over the past say six or so months

dividend and income focused investors

across the entire Market have been very

interested in this ETF because of its

massive 12% more or less starting yield

but also what this ETF has to offer in

its strategy it's say targeted benefits

of spy strategy number one the fund

seeks to distribute High monthly income

generated from investing in the

constituents of the S&P 500 Index and

implementing a a datadriven call option

strategy now active managed by NEOS the

fund seeks to take advantage of tax loss

harvesting opportunities in addition to

utilizing SPX index options classified

as one two 56 contracts which are

subject to lower tax rates now lastly

most importantly maybe the fund utilizes

a call option strategy which may mean

that this fund is going to buy and sell

SPX index options now why that's

important what that means for this ETF

is that even though it does have the

cover call overlay which is going to

generate a ton of premium and therefore

distributable income for investors by

potentially purchasing SPX index options

this ETF also has the potential to grow

in price so specifically for an investor

like me that's looking to generate a ton

of income on a monthly basis again

because I personally am looking to use

if not some all of my dividend income in

the future for bills this ETF will do

that but on top of it it's going to do

it in a tax efficient manner because of

this right here and also has the

potential for upside there's tons of

good ETFs across the market for income

generation but one of my favorites as of

right now is definitely SPI and speaking

of income generation another super easy

way to generate a ton of monthly income

to use for your bills in the future or

for now of course is to invest into

something like SBO to simplify

volatility premium ETF now this ETF is a

bit more confusing but let's dig into it

and see exactly how this TF works and

how it generates so much dividend income

for investors so it says the simplify

volatility premium ETF SV seeks to

provide Investments results before fees

and expenses that correspond to

approximately 1/5 and 310 the inverse of

the performance of the CBOE volatility

index or the vix short-term future index

while also seeking to mitigate extreme

volatility on top of that the fund

shorts of expositions to provide

investors and optimize exposure for

monetizing the premium earn in the vix

future markets a modest option overlay

budget is also deployed on call options

in case things turn for the worse and

reverse which means this fund basically

has all bases covered unless of course

something insane happens now some of the

key points these are also very important

aspects to consider the first ETF

providing inverse fix exposure and this

is also coupled with that Dynamic Hedge

and this is just of course in case

things go crazy 25% short vix exposure

helps to balance trade-off between High

income and volatility drag and deep out

of the money vix call options seek to

provide lowcost protection against

extreme vix spikes along with that

monthly distributions which are awesome

now some more important facts about s

the expense ratio is pretty high at

1.16% so this is something that

investors are going to have to consider

one invested into s now for this video I

promised high quality and ETF that can

generate a ton of income on a monthly

basis and half historically but on top

of that have the potential to grow in

price over time so I couldn't leave out

one of my favorites maybe one of the

most popular and highest quality income

Focus ETFs we're talking about Jeep Q

the JP Morgan NASDAQ Equity premium

income ETF digging a little bit deeper

into Jeep q and sharing why I'm so fond

of this ETF and exactly how it works Jep

Q it says seeking consistent premium

income with lower volatility the JP

Morgan nastic Equity premium income ETF

seeks to deliver monthly distributable

income and nastic 100 exposure with less

volatility it then says expertise lead

portfolio manager Hamilton R has over

three decades of experience investing in

equities and Equity derivatives the

portfolio underline Equity portfolio

employs an applied data science approach

to fundamental research and portfolio

construction and then along with that

disciplined option overlays implements

written out of the money NASDAQ 100

index call options to seek to generate

distributable monthly income so all in

all like I sort of said Jeff Q is more

or less a typical cover call style ETF

it buys a basket of equities and sells

cover calls in this case written out the

money NASDAQ 100 call options now the

reason I'm personally a big fan of the

cover call strategy is because I like

cash flow and because I do not like

volatility there's certain investors out

there that would rather deal with

volatility for some more upside but for

me I'd rather have a little bit more

capped upside if it means I'm going to

have less volatility and more cash flow

but that's just me now one of the

reasons I'm a huge fan of Jep Q is of

course because the underlying Holdings

I've talked about this before on

previous videos but a lot of the cover

call style ETFs just aren't exposed to

the right Holdings and depending on the

cover call overlay strategy some of

these cover call style ETFs don't have

any upside more or less and really only

have downside but because of Jep

strategy and because of the underly

Holdings this ETF not only has paid

investors like myself a consistent 789

10% yield per year but also has grown in

price significantly so there we have it

those are four of my favorite higher

yield in ETFs across the entire markets

in the context of finding different high

quality ETFs to potentially use to pay

your bills on a monthly basis like I

said either now or maybe later on like

I'm doing in the future but out of every

single ETF we talked about in this video

I want to now hear from you guys down

below which is your number one favorite

across the entire basket drop the Dicker

symbol Down Below in the comments if you

enjoyed this video make sure to please

drop a like in it and subscribe for more

future content like this thanks as

always for stopping by and if you are

interested in investing make sure to

check out these recent videos I posted

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