1000 shares in JEPQ (about $53K) gets a very healthy annual accumulation dividend of $4,560. That is a fantastic return but not enough to quit your job just yet. A nice find to be sure.
You're talking about living off your dividends in the now where the video was trying to show the power of reinvesting dividends over time and letting it build. JEPQ is just a few years old but it is off to a great start.
Exactly, the thumbnail said 50k will beat your job, and the video said 50k and 30 years you could consider quitting your job. These are VERY different statements. My job, believe it or not, makes me more than 4k per year. It also makes me more than 50k per year. The misleading clickbait title is not appreciated.
JEPQ is not a dividend ETF in conventional sense. It's a vehicle to use covered call generating income based on QQQ. However, it's total return is lower than buy and hold QQQ.
Thanks for validating my belief in the two JPM funds. I don't have time to trade options, so I decided last year I'd let JPM do it for me for a .35% cost. It has been a great choice so far. My very wealthy brother said if JPM goes down we have much bigger problems. He trades options but he is a big holder of JEPI/JEPQ too. JPM will be the last bank standing.
Outstanding video. For years I tried to beat the market with individual stocks. Today the majority of my holding are JEPI, JEPQ and around 5% in FEPI. I feel very good about that combination. Good income and thus far very nice appreciation. Thanks!!!
I love JEPQ. I'm a new investor to it , but I'm loving it already. Try the math on 80k . Almost 700 a month plus stock appreciation. I also love the portfolio .
Number 1 you invested 80,000 and number 2 $700 a month is $8400 a year. How you you possibly live off a $50,000 investment if you can't live off the $80,000 investment?
I’m sorry this is totally misleading. The dividends do not increase every year they vary depending upon the volatility of the market. Last month’s dividend was almost at the lowest of the variance of the last eighteen months. The stock market doesn’t go up 8% per year either sometimes it goes down. For growth without income you’re better off in an index fund. This etf sacrifices upside for income.
With ETF's you can get both stock appreciation and dividends. To your point that stocks and dividends do not always go up we agree. Hopefully the point came across that investing 50K now in a good stock with dividends reinvested can give people a good return. What would you put 50K into?
@@JerryRomineStocks Well actually I have been contemplating putting $50,000 into JEPQ but for a different investment goal than you mentioned in your video. I believe that this etf is intended not for growth but for income. For a retiree faced with two choices either live off dividends or start selling down your portfolio. The main issue with selling your stocks is sequence of returns risk. If you have saved a lot then the 4% rule combined with the bucket strategy will work. I have not been able to save enough so living off dividends looks like a better way to deal with sequence of returns risk. To that end I have bought 10 shares to see how JEPQ works. One downside that one analyst put forth is that the dividends on these types of funds are effected by volatility. The last dividend is a case in point as it was .3417 per share. Thus the dividends will go up and down based on volatility. Because of the options strategy there will be some sacrifice of growth versus a pure index fund. I only need capital preservation plus enough growth to keep up with inflation.
I invested in JEPQ through my Roth IRA to benefit from tax-free earnings later on. Remember to consult your CPA, since most JEPQ distributions are taxed as ordinary income unless held in a tax-advantaged account.
JEPQ is my single largest holding. I invested into it early. The Is the growth in value, and the big monthly dividend payments ... have been amazing ❤ But like the other investment... You need to monitor it. It has experienced outrageous success in the past. 2024 promises more of the same. But I do not see it growing like this indefinitely.
Thanks for sharing! I agree that the success of the last year is unsustainable. But, if it can outperform the S&P 500 in total gains that's still a strong win if we keep reinvesting the dividends.
This is for sure a dream world. The numbers aren’t conservative, they’re inflated even being modest. It beats a savings account hands down. But as far as capital efficiency goes there’s better ways to
Appreciate your skepticism! It's vital to be cautious with financial projections. The dividend calculator serves as a starting point, offering a glimpse into potential outcomes based on historical data. Try it with your own stocks or ETFs to see how it works for you. Understanding the limitations and using it as part of a broader investment strategy is key. Happy investing!
@@MrSummitvilleI especially like the 6% annual inflation "bump". If inflation was 6% a year moving forward, the national median home price would be 600k and we'd be Venezuela lol
Good to have your validation of JEPQ as that is the overall market income ETF I decided to build a position in about a month ago. SCHD didn't float my boat. Thanks!
People like it because it's more stable and a more mature fund. Keep in mind the fund is less than 2 years old and we've had a hell of a good run in the stock market those last couple years. So it's a bit of Pie in the Sky until more performance history is generated. It's a great addition but I wouldn't base my whole portfolio off it and I wouldn't dump the majority of my money into it either. That's why people like SCHD
i recall Jerry put out a video saying $47 was a good buy signal. Well since that last video, JEPQ never hit $47. It just kept climbing. NVIDIA makes up only 4% of this JEPQ Equity linked Note Covered Call ETF. Is JEPQ still worth the risk, even when the fund managers keep lowering the monthly dividend payouts , as the ETF climbs higher and higher?
*_Great question_*. When you use a dividend yield calculator and notice that the yield drops every year in a 30-year forecast table, it's typically because the calculator is assuming an increase in the stock price over time, while holding the dividend payment constant or increasing it at a slower rate than the stock price. Dividend yield is calculated by dividing the annual dividend payment by the stock's current price. As the stock price increases and if the dividend increase does not match the pace of the stock price increase, the yield as a percentage of the stock price decreases.
Retired with 25% each in JEPI, JEPQ, VOO, QQQM. So far so good. No market timing. Just buy more shares after living expenses. Problem I currently have is JEPQ is at nosebleed level.
The covered call ETFs definitely have a place in many income seeker/retired portfolios - however there are some limitations to be aware of before diving in head first; 1. Net assets are growing very fast, increasing complexity to effectively manage. I suspect this may be why JEPI's performance has taken a hit over the past year, and 2. A substantial correction/tech crash have the potential to devastate JEPQ-like funds, to where it would take a substantial time to recover. The dividend's base-rate is based on option prices/volatility against the current contracts/price - thus you may be earning 9% at $54 per share, and post-correction, could still be earning the same 9%, but the price may have fallen $40 per share.
Question. If you are 50 with $4 million in invested 50% in etfs based on broad indexes (Dow, Spy, Nasdaq) and 50% money market. Is this $ enough to retire. I rent a 2 bedroom apartment, no debt, no kids. Thanks.
Did't JEPQ only rise in share price 4.24% over it's existence? Not sure why a derivatives based ETF would appreciate at 9%. Also, when prices go up and we enter a bull market, covered call funds get the shares called away at a lower price than NAV, then they have to reinvest those funds into more expensive shares and the total premium amount the manager can get to pay dividends may drop if they can only buy smaller round lots with the funds and inflows. Same problem happened to bond derivative mutual funds in the 90s.
I think it's still winning. Even if you get called away and buy back fewer shares, those shares are at higher prices that pay the same dividend percentage. So the dividend you collect is more. I don't really get why in this video, his yield drops every month? His principle is rising, the yield percent should stay the same over time, since he's getting paid for more shares every month.
@@BrisLS1the thinking there is that as the price per share goes up, yield as a percentage goes down. But he's got the shares constantly increasing so that appreciation is baked in
There is not enough history. What going to happen with a 30 or 40 percent correction. This just scares me. You can’t project off of just a 1 year history.
Acknowledging a brief history as a limitation, this video aims to foster critical thinking and highlight the advantages of dividend reinvestment. It's essential for everyone to conduct their own thorough research and make investment decisions that best suit their individual needs and goals.
why in your estimate did you have the yield shrinking every year? since most of the income is generated via covered calls it should not be shrinking like you had it calculated unlike regular dividend stocks, it should be fairly steady at around %9 meaning you should be seeing $144000. unless I am missing something the whole growth chart is off and underestimating growth. Am I missing something?
When you use a dividend yield calculator and notice that the yield drops every year in a 30-year forecast table, it's typically because the calculator is assuming an increase in the stock price over time, while holding the dividend payment constant or increasing it at a slower rate than the stock price. Dividend yield is calculated by dividing the annual dividend payment by the stock's current price. As the stock price increases and if the dividend increase does not match the pace of the stock price increase, the yield as a percentage of the stock price decreases.
Always like to learn about new investment ideas, so thanks. With your clear, concise speech, I recommend you do not include closed captions. They aren't needed and I find them very distracting. Thanks
The 5 year avergae return of a litte over 7% is very low compared to other ETFs and mutual funds. This might be a nice addition for the dividends, but not alone.
JEPQ was launched May of 2022 and the stock price is up just over 7%. JEPQ Annualized Total Returns Since Inception is 14.47%. And when looking forward I ask myself if the expected total return is acceptable.
Good video with one significant error. In your original model, you indicated the dividend tax rate at 15%. However, that is the qualified dividend tax rate. In reality, JEPQ and JEPI pay non-quallified dividends, so the tax rate would actually be the holder's individual tax rate. This could be noticeably higher for someone with a typical income range in the upper 5- to lower 6-figure range. Also, in the later years (20+) this could bump the investor into a much higher tax bracket. In a tax-free account, much less impact, obviously
Thank you for drawing attention to the tax consequences and qualified and no-qualified dividends. I try to do as much in tax advantaged accounts as possible.
I only own 6.5k in jepq it’s a decent way to add income to a portfolio but my retirement is at 46 I still have 15y I’d rather do schd dgro Xlg and spot check some satellite positions 5k a month investing would far beat jepq but I’m not opposed to hitting it up in my last 3 years
I think it's a mix of ordinary dividends, STCG and some LTCG/qualified dividends. Read the prospectus. Just assume it's mostly ordinary income to be safe.
All distributions paid by JEPQ are taxable as ordinary income unless held in a tax-advantaged investment plan. But always consult with your CPA for details regarding your specific tax situation. 😉👊
There are multiple problems with your assumptions. The tax, for starters, won't be 15%, but that's okay, you have to use a number. The dividend growth rate and capital appreciation are never going to be as high as you project. I would rerun the analysis with 0% capital appreciation and 0% dividend growth. Now, if you run an analysis of QQQ (which had a 15 year annualized return of 20.56%) with 0.5% dividend, dividend growth of 5%(it's much higher than that) and a conservative 14% capital appreciation, you will find that JEPQ is absolutely no good.
I hear you. Running the calculator on JEPQ is challenging and tweaking it is tough. Why? Because there is not really a great model to take into account the stock growing and the growing income from the covered calls. The covered calls will (or at least should) provide growing income which we have to classify as dividend growth in the calculator. Therefore, it cannot and would not be zero. I hope this helps you better understand the approach I used. And while we do not have to agree I'm happy that it encouraged you to think about and explore the possibilities.
@@JerryRomineStocks Thank you, I understand your logic. BTW, I do have JEPQ in my portfolio but it's less than 0.1% of my portfolio. It's more for fun than to help me get rich. Over 25% of my money is in VGT, QQQ, SCHG and MGK; another 25% in SCHD, VYM and VIG. It's distressing to see RUclipsrs recommend JEPQ, JEPI and similar investments. Many people cannot think and conduct further research for themselves and they will follow whatever advice they can get.
I try to drive home the message to never blindly follow anyone and ALWAYS do your due diligence and then draw your own conclusions. If my investments fail I want to blame myself, because that is the one thing I control. If I blindly follow someone there is not learning.
Look at the lifetime chart of Googl, MSFT, or other tech stocks? Now ask yourself if you think tech is dying. While nothing is a sure thing I believe tech over time will go higher.
They will crash/pullback as well. The S&P 500 has averaged a 10% return for decades and there are up and down years. As the old saying goes only death and taxes are certain.
yeah so do u have 30 yrs if you start now and u are 50 plus yrs old? some may.. but some dont.. this is good for the 25 -30 yr olds.....is it still worth it if say u have 10-15 yrs only? .. i want ur honest opinion plss.. Thanks for the video!
I'm 53 and I my goal right now is to make it to 100. And, with technology improving in a few years 120 might be a realistic possibility. How long do I actually have? Maybe I get hit by a bus tomorrow but the way I see it planning for the long term and making it to 100 has no downside. If I make it, then awesome because I'll have plenty of money and if I don't then my ride is over and my estate will have the funds. Either way it's a win for me. And, let's say that somewhere down the road you need the money. Whether it is in retirement accounts or somewhere else there will always be a way to get it.
Two years of history is better than no history. It gives you some data, a starting point, but yeah-it's not enough to predict the next 30 years. Here’s the deal though: what if it does better? What if the trends accelerate? You’ve got to ask yourself that because returns compound. The question isn’t “is this the perfect amount of data?”-it’s, “is there a signal that can drive a bigger future?” The market’s unpredictable, and you won’t get clarity with limited data. But waiting around for perfect information? That’s how people miss opportunities.
@@JerryRomineStocks Cool, just seems like tech is in a bubble of some sort to me. With the market this high i have sold some winners and have a chuck of money i was looking to park in for dividend income that's moderately safe fyi to wait for the next drop and pounce buying moment.
I do own some JEPQ. I love it. Your video, however, shows the potential dividends after 30 years of investment. After 30 years I'm not sure $50,000 will be anywhere close to what $50,000 is today. But you are correct the dividend yield, plus the monthly compounding, in my opinion beats out almost every other ETF available.
A lot can go right or wrong in 30 years. But, my goal was to inspire others to look at the possibilities and hopefully find something that will help them for the long term.
@@merlin0152add to the fact that most people that are 50k liquid are older. You won't see this stock for 30 years. It's just a model, but you're right, it would be more accurate to run it with at least modest contributions
He ran the model at 6% annual inflation. You're damned right 50k won't be anywhere that close to today. Interest would also be near 10% and you'd be making 6% or so in a money market or CD
From your profile picture I can see you are quite the optimist. LOL. What part of JEPQs success do you find fault with? Stock appreciation? How they generate income with covered calls? And, why do you think it is too late?
@@JerryRomineStocks I'm heavily invested in JEPQ. Though, I bought in last year in the $40s. It is certainly not too late to buy in, but the market may likely trade sideways now through 2024. Capital appreciation is greater than my dividend yields on this one. FEPI is a different story...
It's an opinion I know, and it's not horrible or rude necessarily when you compare it to some of the others you've gotten for just sharing some personal insights and illustrations on JEPQ, kudos to you for keeping your cool in the face of so much negativity. Thank you for making this video. Best to you Jerry 👍@@JerryRomineStocks
Thank you for the kind words. I can handle criticism, especially when there's truth in the feedback about the dividend calculator's optimistic projections. My aim is to encourage critical thinking about investing and dividends, hoping it benefits some. Ideally, this might even inspire a few to start investing, leading to greater rewards in the future.
I appreciate the comment as a conversation starter and would love to know which YieldMax ETF you like so I can check it out. For those not familiar with Yieldmax here's the list: www.yieldmaxetfs.com/our-etfs/
I don’t think the math is right. JEPQ won’t rise by 10% year on year? I have it in my portfolio but providing such returns while writing calls which limit upside - 10% won’t happen.
Can it sustain that level of stock appreciation? Time will tell. But google "JEPQ Stock" then look at the 1 year chart. At the time of this posting: "+11.43 (27.31%)past year".
I too am a fan of JEPQ; however, you do not properly lay out the way JEPQ works. You keep referring to Dividends, however, you don't clarify that the distributions are mostly if not totally NOT qualified dividends. This means that they get the higher income tax rates of regular income. The best place to be buying JEPQ (and JEPI) is in IRAs ansd other tax advantaged accounts. This is a retirement account (or HSA) income play...not the way for most people to go for long term growth. For long term growth, they should be buying QQQ/QQQM which will outperform JEPI in the long term.
Thanks for pointing that out! You're right - JEPQ’s distributions are mostly non-qualified dividends, which means higher tax rates. Holding JEPQ in IRAs or tax-advantaged accounts, which is what I do, is definitely the way to go for retirement income. For long-term growth, QQQ or QQQM are definitely options to consider. I appreciate your comment!
Definitely optimistic. Lots of other possibilities and hopefully you'll play with a dividend calculator and find one that works for you. If you do let me know what you decide on.
I 💯% respect your answer and choice. I believe most stocks are overvalued. However, I believe the general market values them higher and that their price will continue to rise for possibly years. It's kind of like you are at the grocery store and mangoes are selling for $2 per kilo and you think they are worth $1 per kilo. It doesn't matter what you think if you want mangoes the going price is $2. FYI: In Thailand tasty mangoes are about $1 per kilo right now and I ❤ mangoes. Life is good!
Your Dividend tax rate needs to be at the persons Ordinary Income Rate, which is higher than the Qualified rate of 15%, Last year most of mine 85% on this was Ordinary Tax and a small portion was Qualified . But overall I'm in agreement with you, good post!
This falls under if it sounds to good to be true it probably is. I think the gotcha here is if we get a sharp drop or a prolonged decline this isn't going to work very well. It's too complicated for me to figure out but that what my common sense tells me and I have to rely on that, since i'm not as smart as a lot of folks.
Robert, I'm a big advocate of keep things simple and in your comfort zone so if you are not feeling this or any investment it's OK to walk away. And too your point if there is a sharp drop or prolonged decline in the market most stocks will feel it. 🙂
Thanks Jerry Had I not already been in these hot stocks that are held in the JEPQ for a long time I may be more inclined to invest. I learned about JEPQ from my neighbor who is a veteran investment advisor so it's not that I think it's a risky scheme. I probably wouldn't get the diversification that others would get. Good Luck!@@JerryRomineStocks
Jerry, I’m a 23 year old pretty new investor with 2 years of a max contribution to my Roth IRA using a prebuilt portfolio structure through WealthFront. I’m looking to further optimize my setup and get a little bit of exposure to different funds such as JEPQ that seem very beneficial to get my hand into. Do you have any videos or tips on how you would build your Roth IRA portfolio?
@@JerryRomineStockslooks great! Do you have a an updated list of the these high earning ETFs. Like you mentioned JEPQ is a newly established ETF and makes me curious what else has become a legitimate player in the last 3 years!
With JEPQ to my knowledge all distributions are taxable as ordinary income unless held in a tax-advantaged account. The JEPQ I bought this week is in my Roth IRA so it will be tax free. 😉 * Consult with your financial advisor for details regarding your specific tax situation
Totally hear you, but let's not miss the forest for the trees. Inflation is a pain, we're on the same page there. My example, especially with the dividend calculator, was just to illustrate a point within its limitations. It's not perfect, but it helps us get a glimpse into the complex world of investing amidst inflation.
The word 'bullish' does not belong in a conversation about an income ETF. JEPQ's performance is the perfect example of past perf. is not indicative of future perf. It rode the AI boom, and might ride it a little more, but that also means it will ride the bubble back down if it bursts (Yes, I know, 'if', but this only proves how risky this investment is, which means it is dangerous to recommend to people for retirement. Very dangerous). This kind of growth is NOT sustainable
I respectively disagree. An income etf can give both stock appreciation (hence the bullish position) and pay dividends. I appreciate your comment and welcome those with viewpoints different than my own.
Too optimistic on dividend yield increase per year, more realistic would be 1/2 of what you put in. In a down year, take a 25% off the total yield for that year. Seems like you made it so easy to make money like counting 1,2,3...
I like how you thought this through and encourage everyone to use a dividend calculator to run the numbers for themselves. I appreciate the comment. Thanks.
Dividend calculators are helpful tools, but remember, they're not perfect. The goal is to encourage critical thinking about the advantages of dividends and the importance of reinvesting them. It's crucial for everyone to do their own research and form their own conclusions.
You have to understand that a dividend calculator has limitations and when we say that the S&P 500 has averaged a 10% return for decades that there were both bull and bear markets.
*Speaking of original how about your name Joe Blow?* How many of those other ETFs provided an attractive 12-month rolling dividend yield of 12.51% and 30-day SEC yield of 11.68%?
SCHD dividend growth should end up exceeding JEPQ income in the 20 year timeframe. No way you can expect this level of share price growth and absolutely not the dividend growth. Jerry usually has great vids. This ain't one of them.
Check out the attached article from Jerry. Investopedia does a good job of explaining this. It explains why dividend growth investors do better than those that go after high dividend yields. Those are more likely to be cut and dissolve completely
There are lower for sure but Google says based on the average JEPQ is lower than most. www.google.com/search?q=what+is+the+average+etf+expense+ratio.&oq=what+is+the+average+etf+expense+ratio.+&gs_lcrp=EgZjaHJvbWUyBggAEEUYOTIGCAEQLhhA0gEIOTA1N2owajGoAgCwAgA&sourceid=chrome&ie=UTF-8
Horribly misleading, this etf makes it dividend from selling call options, so you can’t assume the dividend will increase every year. Also, because an allocate to significant portion to call options, it will never grow at the rate of the index.
Google "JEPQ stock" and look at the 1 year chart. At the time of this post it is up "+10.43 (24.35%) past year". JEPQ is relatively new and it has a limited track record. The goal of the video is to encourage critical thought and show the power of dividend reinvesting. Of course everyone should do their own due diligence and then do what is best for them.
If you started with 50k and did not add anything, in 20 years, you would have incurred 20.7k in expense ratio fees. Assuming an average return of 10% a year.
If the expense ratio is holding you back you can always do everything yourself if you have the necessary funds to buy/sell the stocks/options. Many do not. It's your money, invest it as you see best.
I appreciate your videos, but as for this stock, you're basing your. Numbers on The fictional idea that the share price will not depreciate at all. My experience has always seen these high yielding stocks go down and share price. And the expense ratio is the only winner and true beneficiary when it's all over.
What you say is true for some of the dividend stocks and ETFs. However, if done right the stocks can appreciate in the ETF and still have good income from writing covered calls. I make good money wheeling stocks but it takes more time than just buying an ETF and letting it do all of the work.
1000 shares in JEPQ (about $53K) gets a very healthy annual accumulation dividend of $4,560. That is a fantastic return but not enough to quit your job just yet. A nice find to be sure.
You're talking about living off your dividends in the now where the video was trying to show the power of reinvesting dividends over time and letting it build. JEPQ is just a few years old but it is off to a great start.
@@JerryRomineStocks Your thumbnail stated something quite different. PleAse take a look at your thumbnail again and revise. Thx.
Exactly, the thumbnail said 50k will beat your job, and the video said 50k and 30 years you could consider quitting your job. These are VERY different statements. My job, believe it or not, makes me more than 4k per year. It also makes me more than 50k per year. The misleading clickbait title is not appreciated.
his clickbait BS, like many out there @@YepTriedToTellYou
Indeed. There's a lot of hopium in those statements.
JEPQ is not a dividend ETF in conventional sense. It's a vehicle to use covered call generating income based on QQQ. However, it's total return is lower than buy and hold QQQ.
Thanks for validating my belief in the two JPM funds. I don't have time to trade options, so I decided last year I'd let JPM do it for me for a .35% cost. It has been a great choice so far. My very wealthy brother said if JPM goes down we have much bigger problems. He trades options but he is a big holder of JEPI/JEPQ too. JPM will be the last bank standing.
You are most welcome. Always nice when friends and family are making money too!
Did you know that JP Morgan was the bank that bailed out the US government back in the 1880s?
Jerry could you cover SMCI?
Outstanding video. For years I tried to beat the market with individual stocks. Today the majority of my holding are JEPI, JEPQ and around 5% in FEPI. I feel very good about that combination. Good income and thus far very nice appreciation. Thanks!!!
You're welcome @davenorth2903! 🙏
I love JEPQ. I'm a new investor to it , but I'm loving it already. Try the math on 80k . Almost 700 a month plus stock appreciation. I also love the portfolio .
Thanks for sharing! The math is a lot of fun and even if JEPQ slows down a little the numbers are still staggering.
Jepq is a nasdaq 100 cover called etf JEPI is a s&p 500 cover called etf schd is a dividend growth etf
Number 1 you invested 80,000 and number 2 $700 a month is $8400 a year. How you you possibly live off a $50,000 investment if you can't live off the $80,000 investment?
I’m sorry this is totally misleading. The dividends do not increase every year they vary depending upon the volatility of the market. Last month’s dividend was almost at the lowest of the variance of the last eighteen months. The stock market doesn’t go up 8% per year either sometimes it goes down. For growth without income you’re better off in an index fund. This etf sacrifices upside for income.
With ETF's you can get both stock appreciation and dividends. To your point that stocks and dividends do not always go up we agree. Hopefully the point came across that investing 50K now in a good stock with dividends reinvested can give people a good return. What would you put 50K into?
@@JerryRomineStocks Well actually I have been contemplating putting $50,000 into JEPQ but for a different investment goal than you mentioned in your video. I believe that this etf is intended not for growth but for income. For a retiree faced with two choices either live off dividends or start selling down your portfolio. The main issue with selling your stocks is sequence of returns risk. If you have saved a lot then the 4% rule combined with the bucket strategy will work. I have not been able to save enough so living off dividends looks like a better way to deal with sequence of returns risk. To that end I have bought 10 shares to see how JEPQ works. One downside that one analyst put forth is that the dividends on these types of funds are effected by volatility. The last dividend is a case in point as it was .3417 per share. Thus the dividends will go up and down based on volatility. Because of the options strategy there will be some sacrifice of growth versus a pure index fund. I only need capital preservation plus enough growth to keep up with inflation.
I invested in JEPQ through my Roth IRA to benefit from tax-free earnings later on. Remember to consult your CPA, since most JEPQ distributions are taxed as ordinary income unless held in a tax-advantaged account.
XLK
Ok and? Writing a covered call on your own also “sacrifices growth for income” … isn’t that the point?
JEPQ is my single largest holding. I invested into it early.
The Is the growth in value, and the big monthly dividend payments ... have been amazing ❤
But like the other investment... You need to monitor it. It has experienced outrageous success in the past.
2024 promises more of the same. But I do not see it growing like this indefinitely.
Thanks for sharing! I agree that the success of the last year is unsustainable. But, if it can outperform the S&P 500 in total gains that's still a strong win if we keep reinvesting the dividends.
Whats a good buy price per share ?
This is for sure a dream world. The numbers aren’t conservative, they’re inflated even being modest. It beats a savings account hands down. But as far as capital efficiency goes there’s better ways to
Amazing. A line drawn to infinity based on one year of data. What could possibly go wrong?
Appreciate your skepticism! It's vital to be cautious with financial projections. The dividend calculator serves as a starting point, offering a glimpse into potential outcomes based on historical data.
Try it with your own stocks or ETFs to see how it works for you. Understanding the limitations and using it as part of a broader investment strategy is key. Happy investing!
@@JerryRomineStocks Your invalid usage of the dividend calculator, creates rainbows and lollipops. Not reality.
@@MrSummitvilleI especially like the 6% annual inflation "bump". If inflation was 6% a year moving forward, the national median home price would be 600k and we'd be Venezuela lol
Well said. I suspect that in another few years, JEPQ will resemble QYLD.
Good to have your validation of JEPQ as that is the overall market income ETF I decided to build a position in about a month ago. SCHD didn't float my boat. Thanks!
SCHD is very popular but it pales in comparison to JEPQ.
People like it because it's more stable and a more mature fund. Keep in mind the fund is less than 2 years old and we've had a hell of a good run in the stock market those last couple years. So it's a bit of Pie in the Sky until more performance history is generated. It's a great addition but I wouldn't base my whole portfolio off it and I wouldn't dump the majority of my money into it either. That's why people like SCHD
@@andrewcarlson2178 Thank you. It's less than .5% of my portfolio, I'll only add if it drops below my cb.
Great! Thanks for the update. 😉😀
No problem 👍
i recall Jerry put out a video saying $47 was a good buy signal. Well since that last video, JEPQ never hit $47. It just kept climbing. NVIDIA makes up only 4% of this JEPQ Equity linked Note Covered Call ETF. Is JEPQ still worth the risk, even when the fund managers keep lowering the monthly dividend payouts , as the ETF climbs higher and higher?
When investing in a dividend ETF I want dividends and stock appreciation. If both are happening that's a good thing even if one is slowing down.
Excellent video Jerry
Many thanks!
why does the yield drop every year in the 30 year forecast table? 6:52
*_Great question_*. When you use a dividend yield calculator and notice that the yield drops every year in a 30-year forecast table, it's typically because the calculator is assuming an increase in the stock price over time, while holding the dividend payment constant or increasing it at a slower rate than the stock price. Dividend yield is calculated by dividing the annual dividend payment by the stock's current price. As the stock price increases and if the dividend increase does not match the pace of the stock price increase, the yield as a percentage of the stock price decreases.
Thank you for your help today. This is good.
You're very welcome!
Retired with 25% each in JEPI, JEPQ, VOO, QQQM. So far so good. No market timing. Just buy more shares after living expenses. Problem I currently have is JEPQ is at nosebleed level.
Perhaps, but if tech goes higher JEPQ will as well.
In my opinion, that is a perfect portfolio for a retiree
Thank you Jerry for this pick. I just bought 50 shares and the income is pretty good. I’m investing forever
Forever is a long time. Always take into consideration the ETFs performance and if anything fundamentally changes. I like it for the long term too.
Nice, How is drip setup and do you pay taxes before reinvesting the dividends?
Great info, thx.
Shouldn’t the chart be adjusted to reflect the taxes req’d to be paid on the dividends? ….therefore accumulating less?
Most charts have limitations.
Another out of the park presentation Jerry. I always look forward to the video's that you take the time to give us. Lots of respect
Thanks 👍. I'm glad you enjoy the videos.
The covered call ETFs definitely have a place in many income seeker/retired portfolios - however there are some limitations to be aware of before diving in head first; 1. Net assets are growing very fast, increasing complexity to effectively manage. I suspect this may be why JEPI's performance has taken a hit over the past year, and 2. A substantial correction/tech crash have the potential to devastate JEPQ-like funds, to where it would take a substantial time to recover. The dividend's base-rate is based on option prices/volatility against the current contracts/price - thus you may be earning 9% at $54 per share, and post-correction, could still be earning the same 9%, but the price may have fallen $40 per share.
JEPQ stock is up 15.88% in the last year PLUS you get the high dividend.
Thank you!
You're welcome @projectkj7643! 🙏
Will defiantly load up at the next bear market bottom. Should be a hold for life then. Thanks for the suggestion!
You're welcome @videotryouts1! 🙏
It will be a great performance indicator to see how the stock does in the upcoming correction.
It may take 10 years or so to get to 1000 shares but I'm working on it for my retirement in my 60s.
😀😎😆
Thanks Jerry
You're welcome @Bryan-yq9pz! 🙏
Hello
Great info !!!!
Jepq or tqqq ??
For me JEPQ. TQQQ is 3X leveraged which is not what I'm looking for.
Thanks👊
You're welcome! 👊👊👊
Question. If you are 50 with $4 million in invested 50% in etfs based on broad indexes (Dow, Spy, Nasdaq) and 50% money market. Is this $ enough to retire. I rent a 2 bedroom apartment, no debt, no kids. Thanks.
No, you need 6 mil.... better move into a studio.
@@GeraldBeagan-ee6se How is that or are you joking?
He's joking.
@@jakejake7289 So I should feel good. 4% or 5% return should set me for life. I may have a 0 return year but on avg 4% return
How do i change my traditional IRA to a ROTH IRA?
Awesome!
Thank you! Cheers!
What is your stop lose on jepq?
No stop loss in place. Long term buy and hold.
That annual$4560 you speak of is what I get every month right now from 75% of an 80K portfolio. Ever hear of YieldMax or Trex or Roundhill etfs?
That's awesome. But what's happening to your equity position in the ETFs? Which ones so I can take a look.
Did't JEPQ only rise in share price 4.24% over it's existence? Not sure why a derivatives based ETF would appreciate at 9%. Also, when prices go up and we enter a bull market, covered call funds get the shares called away at a lower price than NAV, then they have to reinvest those funds into more expensive shares and the total premium amount the manager can get to pay dividends may drop if they can only buy smaller round lots with the funds and inflows. Same problem happened to bond derivative mutual funds in the 90s.
I think it's still winning. Even if you get called away and buy back fewer shares, those shares are at higher prices that pay the same dividend percentage. So the dividend you collect is more. I don't really get why in this video, his yield drops every month? His principle is rising, the yield percent should stay the same over time, since he's getting paid for more shares every month.
@@BrisLS1the thinking there is that as the price per share goes up, yield as a percentage goes down. But he's got the shares constantly increasing so that appreciation is baked in
There is not enough history. What going to happen with a 30 or 40 percent correction. This just scares me. You can’t project off of just a 1 year history.
Acknowledging a brief history as a limitation, this video aims to foster critical thinking and highlight the advantages of dividend reinvestment. It's essential for everyone to conduct their own thorough research and make investment decisions that best suit their individual needs and goals.
What about FEPI? is it good to invest 50K on it?
why in your estimate did you have the yield shrinking every year? since most of the income is generated via covered calls it should not be shrinking like you had it calculated unlike regular dividend stocks, it should be fairly steady at around %9 meaning you should be seeing $144000. unless I am missing something the whole growth chart is off and underestimating growth. Am I missing something?
When you use a dividend yield calculator and notice that the yield drops every year in a 30-year forecast table, it's typically because the calculator is assuming an increase in the stock price over time, while holding the dividend payment constant or increasing it at a slower rate than the stock price. Dividend yield is calculated by dividing the annual dividend payment by the stock's current price. As the stock price increases and if the dividend increase does not match the pace of the stock price increase, the yield as a percentage of the stock price decreases.
What webite do you use for the dividend calculator?
marketbeat.com
Always like to learn about new investment ideas, so thanks. With your clear, concise speech, I recommend you do not include closed captions. They aren't needed and I find them very distracting. Thanks
I appreciate the comment. I know people are mixed on the captions with many loving them and a few disliking them.
What can go wrong with JEPQ if the market crashes? Thank you!
If the market crashes most stocks will be brought down and JEPQ would not be an exception.
The 5 year avergae return of a litte over 7% is very low compared to other ETFs and mutual funds. This might be a nice addition for the dividends, but not alone.
JEPQ was launched May of 2022 and the stock price is up just over 7%. JEPQ Annualized Total Returns Since Inception is 14.47%. And when looking forward I ask myself if the expected total return is acceptable.
Can you please provide me link for dividend calculator.
www.marketbeat.com/dividends/calculator/
Muy concern is if they're going to provide 8-9 yield for a long time
I believe we all have that concern. Time will tell.
Tech sector will grow like crazy the next two years! The bubble may burst in a couple years but bank some good roi now via drip! 🎉😊
I like how you think. 👊
Good video with one significant error. In your original model, you indicated the dividend tax rate at 15%. However, that is the qualified dividend tax rate. In reality, JEPQ and JEPI pay non-quallified dividends, so the tax rate would actually be the holder's individual tax rate. This could be noticeably higher for someone with a typical income range in the upper 5- to lower 6-figure range. Also, in the later years (20+) this could bump the investor into a much higher tax bracket. In a tax-free account, much less impact, obviously
Thank you for drawing attention to the tax consequences and qualified and no-qualified dividends. I try to do as much in tax advantaged accounts as possible.
What website did you use to compare both stocks ?
MarketBeat
So this dividend pays out like a APY % ?
Yes. Their is the yield which is currently around 10% but the dividends are paid monthly which I ❤.
I only own 6.5k in jepq it’s a decent way to add income to a portfolio but my retirement is at 46 I still have 15y I’d rather do schd dgro Xlg and spot check some satellite positions 5k a month investing would far beat jepq but I’m not opposed to hitting it up in my last 3 years
Sounds like you have a solid plan. I have a mix in my portfolio including JEPQ which is nice since there is nothing to manage.
How about qflr the nas 100 managed floor etf
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Thanks for the overview. How is this ETF taxed?
I think it's a mix of ordinary dividends, STCG and some LTCG/qualified dividends. Read the prospectus. Just assume it's mostly ordinary income to be safe.
All distributions paid by JEPQ are taxable as ordinary income unless held in a tax-advantaged investment plan. But always consult with your CPA for details regarding your specific tax situation. 😉👊
Whats a good buy price per share?
For the long term? I think it is going higher. But for you, that's something only you should decide after doing your due diligence.
There are multiple problems with your assumptions. The tax, for starters, won't be 15%, but that's okay, you have to use a number. The dividend growth rate and capital appreciation are never going to be as high as you project. I would rerun the analysis with 0% capital appreciation and 0% dividend growth. Now, if you run an analysis of QQQ (which had a 15 year annualized return of 20.56%) with 0.5% dividend, dividend growth of 5%(it's much higher than that) and a conservative 14% capital appreciation, you will find that JEPQ is absolutely no good.
I hear you. Running the calculator on JEPQ is challenging and tweaking it is tough. Why? Because there is not really a great model to take into account the stock growing and the growing income from the covered calls. The covered calls will (or at least should) provide growing income which we have to classify as dividend growth in the calculator. Therefore, it cannot and would not be zero.
I hope this helps you better understand the approach I used. And while we do not have to agree I'm happy that it encouraged you to think about and explore the possibilities.
@@JerryRomineStocks Thank you, I understand your logic. BTW, I do have JEPQ in my portfolio but it's less than 0.1% of my portfolio. It's more for fun than to help me get rich. Over 25% of my money is in VGT, QQQ, SCHG and MGK; another 25% in SCHD, VYM and VIG. It's distressing to see RUclipsrs recommend JEPQ, JEPI and similar investments. Many people cannot think and conduct further research for themselves and they will follow whatever advice they can get.
I try to drive home the message to never blindly follow anyone and ALWAYS do your due diligence and then draw your own conclusions. If my investments fail I want to blame myself, because that is the one thing I control. If I blindly follow someone there is not learning.
with tech being so high. its still good idea?
The trend is your friend, until the end. Dollar Cost Averaging is another investment strategy.
Look at the lifetime chart of Googl, MSFT, or other tech stocks? Now ask yourself if you think tech is dying. While nothing is a sure thing I believe tech over time will go higher.
These products assume constant growth forever. How will this perform in a market crash?
They will crash/pullback as well. The S&P 500 has averaged a 10% return for decades and there are up and down years. As the old saying goes only death and taxes are certain.
yeah so do u have 30 yrs if you start now and u are 50 plus yrs old? some may.. but some dont.. this is good for the 25 -30 yr olds.....is it still worth it if say u have 10-15 yrs only? .. i want ur honest opinion plss.. Thanks for the video!
I'm 53 and I my goal right now is to make it to 100. And, with technology improving in a few years 120 might be a realistic possibility. How long do I actually have? Maybe I get hit by a bus tomorrow but the way I see it planning for the long term and making it to 100 has no downside. If I make it, then awesome because I'll have plenty of money and if I don't then my ride is over and my estate will have the funds. Either way it's a win for me.
And, let's say that somewhere down the road you need the money. Whether it is in retirement accounts or somewhere else there will always be a way to get it.
Two years of history is grossly inadequate in projecting returns 30 years into the future.
Two years of history is better than no history. It gives you some data, a starting point, but yeah-it's not enough to predict the next 30 years. Here’s the deal though: what if it does better? What if the trends accelerate? You’ve got to ask yourself that because returns compound. The question isn’t “is this the perfect amount of data?”-it’s, “is there a signal that can drive a bigger future?” The market’s unpredictable, and you won’t get clarity with limited data. But waiting around for perfect information? That’s how people miss opportunities.
What about Yieldmax?
As a generalization I don't like them. The dividends are good but they take your equity. Somebody, anybody, prove me wrong. I'm happy if you do.
Isnt it kinda high right now??
Yes. And I still bought it this week. For the big picture I should be OK. Time will tell.
@@JerryRomineStocks Cool, just seems like tech is in a bubble of some sort to me. With the market this high i have sold some winners and have a chuck of money i was looking to park in for dividend income that's moderately safe fyi to wait for the next drop and pounce buying moment.
You cannot go broke taking profits. You could park your money with WeBull which is paying 5% interet right now and deploy it whenever you are ready.
I have $70k in JEPQ. Only need $140k more to call it the sole retirement stock.
While I ❤ JEPQ I also like a little diversification. Something to consider.
what about 50:50 JPEQ and SCHD?
Whatever you think is best for you. I like them both for different reasons.
I do own some JEPQ. I love it. Your video, however, shows the potential dividends after 30 years of investment. After 30 years I'm not sure $50,000 will be anywhere close to what $50,000 is today. But you are correct the dividend yield, plus the monthly compounding, in my opinion beats out almost every other ETF available.
A lot can go right or wrong in 30 years. But, my goal was to inspire others to look at the possibilities and hopefully find something that will help them for the long term.
@@JerryRomineStocks WTF if it might be wrong... why not just a assume it is wrong and then say: or assume it is right and we have your outcome.
He also did not assume any further contributions to the ETF in 30 years. Quite conservative and not necessarily realistic for an investor.
@@merlin0152add to the fact that most people that are 50k liquid are older. You won't see this stock for 30 years. It's just a model, but you're right, it would be more accurate to run it with at least modest contributions
He ran the model at 6% annual inflation. You're damned right 50k won't be anywhere that close to today. Interest would also be near 10% and you'd be making 6% or so in a money market or CD
The time to buy JEPQ was late last year when people like this were telling us that it was "too new, too risky".
From your profile picture I can see you are quite the optimist. LOL. What part of JEPQs success do you find fault with? Stock appreciation? How they generate income with covered calls? And, why do you think it is too late?
@@JerryRomineStocks I'm heavily invested in JEPQ. Though, I bought in last year in the $40s. It is certainly not too late to buy in, but the market may likely trade sideways now through 2024. Capital appreciation is greater than my dividend yields on this one. FEPI is a different story...
It's an opinion I know, and it's not horrible or rude necessarily when you compare it to some of the others you've gotten for just sharing some personal insights and illustrations on JEPQ, kudos to you for keeping your cool in the face of so much negativity. Thank you for making this video. Best to you Jerry 👍@@JerryRomineStocks
Thank you for the kind words. I can handle criticism, especially when there's truth in the feedback about the dividend calculator's optimistic projections. My aim is to encourage critical thinking about investing and dividends, hoping it benefits some. Ideally, this might even inspire a few to start investing, leading to greater rewards in the future.
@@JerryRomineStocksYou didn't answer his questions Jerry.
do you get killed with a taxable account?
Let's just say I prefer tax advantaged accounts whenever possible.
@@JerryRomineStocks thank you.
My yield max port with 50gs will smoke it!
I appreciate the comment as a conversation starter and would love to know which YieldMax ETF you like so I can check it out. For those not familiar with Yieldmax here's the list: www.yieldmaxetfs.com/our-etfs/
lol yeildmax if you want to donate your equity
Plan on losing your investment @@JerryRomineStocks
You should consider reinvest some of the dividends into QQQ😅
For me it is easier to have the dividends automatically reinvested back into JEPQ. But I also own QQQ and QQQM. 😉
I don’t think the math is right. JEPQ won’t rise by 10% year on year? I have it in my portfolio but providing such returns while writing calls which limit upside - 10% won’t happen.
Can it sustain that level of stock appreciation? Time will tell. But google "JEPQ Stock" then look at the 1 year chart. At the time of this posting: "+11.43 (27.31%)past year".
I too am a fan of JEPQ; however, you do not properly lay out the way JEPQ works. You keep referring to Dividends, however, you don't clarify that the distributions are mostly if not totally NOT qualified dividends. This means that they get the higher income tax rates of regular income. The best place to be buying JEPQ (and JEPI) is in IRAs ansd other tax advantaged accounts. This is a retirement account (or HSA) income play...not the way for most people to go for long term growth. For long term growth, they should be buying QQQ/QQQM which will outperform JEPI in the long term.
Thanks for pointing that out! You're right - JEPQ’s distributions are mostly non-qualified dividends, which means higher tax rates. Holding JEPQ in IRAs or tax-advantaged accounts, which is what I do, is definitely the way to go for retirement income. For long-term growth, QQQ or QQQM are definitely options to consider.
I appreciate your comment!
Interesting but wildly optimistic in the long run.
Definitely optimistic. Lots of other possibilities and hopefully you'll play with a dividend calculator and find one that works for you. If you do let me know what you decide on.
How protected is this ETF is tech stocks go down?
Protected? It is not and its value reflects that of its holdings.
@@JerryRomineStocks It is overvalued now. I don't see tech surging the same way it did last year.
I 💯% respect your answer and choice. I believe most stocks are overvalued. However, I believe the general market values them higher and that their price will continue to rise for possibly years.
It's kind of like you are at the grocery store and mangoes are selling for $2 per kilo and you think they are worth $1 per kilo. It doesn't matter what you think if you want mangoes the going price is $2.
FYI: In Thailand tasty mangoes are about $1 per kilo right now and I ❤ mangoes. Life is good!
If you could put your money on one ETF, which one would you chose? JEPQ, SCHD, others?
It really depends on your goals. I own several ETFs with many of them tech focused.
Your Dividend tax rate needs to be at the persons Ordinary Income Rate, which is higher than the Qualified rate of 15%, Last year most of mine 85% on this was Ordinary Tax and a small portion was Qualified . But overall I'm in agreement with you, good post!
Thank you. I appreciate your feedback. And, 85%. OUCH!
This falls under if it sounds to good to be true it probably is. I think the gotcha here is if we get a sharp drop or a prolonged decline this isn't going to work very well. It's too complicated for me to figure out but that what my common sense tells me and I have to rely on that, since i'm not as smart as a lot of folks.
Robert, I'm a big advocate of keep things simple and in your comfort zone so if you are not feeling this or any investment it's OK to walk away. And too your point if there is a sharp drop or prolonged decline in the market most stocks will feel it. 🙂
Thanks Jerry Had I not already been in these hot stocks that are held in the JEPQ for a long time I may be more inclined to invest. I learned about JEPQ from my neighbor who is a veteran investment advisor so it's not that I think it's a risky scheme. I probably wouldn't get the diversification that others would get. Good Luck!@@JerryRomineStocks
Jerry, I’m a 23 year old pretty new investor with 2 years of a max contribution to my Roth IRA using a prebuilt portfolio structure through WealthFront. I’m looking to further optimize my setup and get a little bit of exposure to different funds such as JEPQ that seem very beneficial to get my hand into. Do you have any videos or tips on how you would build your Roth IRA portfolio?
Congrats on your early start with a ROTH IRA. Check out this video and let me know what you think: ruclips.net/video/o7LyzNtfOjs/видео.html
@@JerryRomineStockslooks great! Do you have a an updated list of the these high earning ETFs. Like you mentioned JEPQ is a newly established ETF and makes me curious what else has become a legitimate player in the last 3 years!
No, but that might be a video I would consider making in the near future. Thanks for the idea.
Are JEPQ dividends qualified?
Some but not all.
Looks like around 10% qualified / 90% unqualified!
@@jray5363 tha k youbfor the quick reply, where can we find this info ?
With JEPQ to my knowledge all distributions are taxable as ordinary income unless held in a tax-advantaged account. The JEPQ I bought this week is in my Roth IRA so it will be tax free. 😉
* Consult with your financial advisor for details regarding your specific tax situation
i dont think you understand inflation.
Totally hear you, but let's not miss the forest for the trees. Inflation is a pain, we're on the same page there. My example, especially with the dividend calculator, was just to illustrate a point within its limitations. It's not perfect, but it helps us get a glimpse into the complex world of investing amidst inflation.
Little over $300 per month in dividends
Way to go. Every dollar earned helps pay the bills or support your lifestyle.
so start shorting JEPQ
Go for it! I'm staying long. 😉
But it’s not FDIC insured
Do you question JP Morgan's financial stability? Is this a legit concern for you? If so then avoid their etfs.
nothing is forever, What happens when JEPQ closes its fund.
If you think and ETF is going to close then either don't invest in it or sell your shares.
The word 'bullish' does not belong in a conversation about an income ETF. JEPQ's performance is the perfect example of past perf. is not indicative of future perf. It rode the AI boom, and might ride it a little more, but that also means it will ride the bubble back down if it bursts (Yes, I know, 'if', but this only proves how risky this investment is, which means it is dangerous to recommend to people for retirement. Very dangerous). This kind of growth is NOT sustainable
I respectively disagree. An income etf can give both stock appreciation (hence the bullish position) and pay dividends. I appreciate your comment and welcome those with viewpoints different than my own.
JEPQ or QQQY?
For me? JEPQ 💯%
17% return in 12 months 2024 to this date. QQQ has 37% return in last 12 months.
That's like comparing a Toyota Yaris to Lamborghini. You can own both (I do) and they serve different purposes.
jepq jepi you cant buy them in the uk
You might consider finding another brokerage that offers them.
Too optimistic on dividend yield increase per year, more realistic would be 1/2 of what you put in. In a down year, take a 25% off the total yield for that year. Seems like you made it so easy to make money like counting 1,2,3...
I like how you thought this through and encourage everyone to use a dividend calculator to run the numbers for themselves. I appreciate the comment. Thanks.
$100,000. in SCHD is wildly preferable.
I just arrived!!
If that works for you roll with it! 👊💰
Look at JPPQ comparison to S&P 500 index over 1 and 2 year return. S&P have much greater return. Total return is better than high dividend. No thanks.
JEPQ inception was May of 2022. It has outperformed the S and P all that time. It has however lagged QQQ but a decent amount.
why pay high exp.................than others of same
Shot the ETFs and go with the one that best aligns with your goals.
For anyone who feels compelled to believe this, do yourself a favor and research.
Dividend calculators are helpful tools, but remember, they're not perfect. The goal is to encourage critical thinking about the advantages of dividends and the importance of reinvesting them. It's crucial for everyone to do their own research and form their own conclusions.
You didn’t account for 5-10 bear market years in a 30 year period.
You have to understand that a dividend calculator has limitations and when we say that the S&P 500 has averaged a 10% return for decades that there were both bull and bear markets.
What an original pick, I can't think of any other ETF with those same top 10 holdings
*Speaking of original how about your name Joe Blow?* How many of those other ETFs provided an attractive 12-month rolling dividend yield of 12.51% and 30-day SEC yield of 11.68%?
@@JerryRomineStocks SMH
The hostage clip 😅😂
😀😎😆
Eh....JEPQ isn't at 11%
I think the only hesitation I see is how new JEPQ is....
Decisions... decisions...
@@JerryRomineStocks I think I will pull the trigger on JEPQ. I am not as wealthy as some of these other investors, so I am going to go with $1000.
will like to see on a bad market year. No history so not for me.
That's completely understandable.
Your math seems to be flawed. Did you say 4% increase year over year? So in 20 years you get 50% dividend year!? No way.
This should help: www.investopedia.com/terms/d/dividendgrowthrate.asp. I wish the dividend rate would get to 50% but that is not happening.
SCHD dividend growth should end up exceeding JEPQ income in the 20 year timeframe.
No way you can expect this level of share price growth and absolutely not the dividend growth.
Jerry usually has great vids. This ain't one of them.
@@masoncncjepi or jepq? The latter is the one covered here. 😅 This ain't one of them. 😂
Check out the attached article from Jerry. Investopedia does a good job of explaining this. It explains why dividend growth investors do better than those that go after high dividend yields. Those are more likely to be cut and dissolve completely
@@brianh9014 fixed🤣
fyi, JEPQ does not have a low expense ratio
There are lower for sure but Google says based on the average JEPQ is lower than most. www.google.com/search?q=what+is+the+average+etf+expense+ratio.&oq=what+is+the+average+etf+expense+ratio.+&gs_lcrp=EgZjaHJvbWUyBggAEEUYOTIGCAEQLhhA0gEIOTA1N2owajGoAgCwAgA&sourceid=chrome&ie=UTF-8
Quit my job? Oh. Ok.
Horribly misleading, this etf makes it dividend from selling call options, so you can’t assume the dividend will increase every year. Also, because an allocate to significant portion to call options, it will never grow at the rate of the index.
Google "JEPQ stock" and look at the 1 year chart. At the time of this post it is up "+10.43 (24.35%) past year". JEPQ is relatively new and it has a limited track record.
The goal of the video is to encourage critical thought and show the power of dividend reinvesting. Of course everyone should do their own due diligence and then do what is best for them.
If you started with 50k and did not add anything, in 20 years, you would have incurred 20.7k in expense ratio fees. Assuming an average return of 10% a year.
If the expense ratio is holding you back you can always do everything yourself if you have the necessary funds to buy/sell the stocks/options. Many do not. It's your money, invest it as you see best.
I appreciate your videos, but as for this stock, you're basing your. Numbers on The fictional idea that the share price will not depreciate at all. My experience has always seen these high yielding stocks go down and share price. And the expense ratio is the only winner and true beneficiary when it's all over.
What you say is true for some of the dividend stocks and ETFs. However, if done right the stocks can appreciate in the ETF and still have good income from writing covered calls. I make good money wheeling stocks but it takes more time than just buying an ETF and letting it do all of the work.
My share price on JEPQ has been increasing not decreasing.