Make sure to leave your $0.02 in the comments! I am always open to your feedback! THANK YOU for taking time out of your day to watch AND leave a comment!
Well said, though I think the erosion has been very minor and is completely offset if using DRIP (Which we will talk about in a future video). If living off the dividend, I think the benefit of the much higher yield is better than the slight erosion downside BUT that's just my personal opinion. I don't advocate for 100% QYLD portfolios. =) THANK YOU for watching and for leaving your $0.02 in the comments!
Very well done. I am getting ready to retire and I have about a 1% position in QYLD. I can live off my portfolio but why not put some in QYLD and live off the cash flow. I could put 12% in and support my family and live good on that. That is part of my strategy moving forward.
I have 3% to 5% of my portfolio in each of QYLD, RYLD, and XYLD. I have -- and intend to keep -- approximately 10% of my portfolio in cash to guard against sequence of returns risk, so I that I will not have to sell assets in a down market. My portfolio is structured 40% to cash flow, 10% cash, and 50% growth. The cash flow received covers all of my living expenses in retirement. In light of this, I don't view QYLD, RYLD, or XYLD as being risky. ETA: I just recently discovered your channel and like your videos. I also appreciate the distinction you made about defining "risk" properly for the intended portfolio use.
I just came across this video. I don`t know your name but I think you are very, very smart. Your definition of risk is the best that I have ever heard. Are you a financial expert of some kind. I have always heard of risk but never in the way you explain it. It is different for every person. Excellent !!!!
Very good vid. I have 10k shares of QYLD plus 4000 RYLD and 4 others others. I plan on having a least 10 total. I sell puts on god dividend stocks with good option. This usual gets me in at a very good Price. I like your strategy.
Thanks for sharing TL! I think the next evolution of my dividend portfolio, is going to be something like: 25 - 33% High-Yield (ARCC, WLKP, QYLD, etc.), 25-33% Balanced Quality Dividend Stocks (Good Yield and Above Average DGR) and then 25-33% Dividend Stocks that I can capture good option premium from covered calls. More to come on this. =) THANK YOU for watching TL and for leaving your $0.02 in the comments! 😎👍🏻
I’m an income investor so qyld, ryld and jepi are cash generators for me. I have a target cashlow for each position and will add to it until I’ve reached that goal. Depending on yield this comes down to an allocation size of about 3-5% of the overall portfolio. I’m well aware that they’re not going to appreciate but I have other positions for that.
Risk is measured against your objective. Define your objective then measure the risk against your approach (ways and means) to that objective. Objective…growth, or objective…income, objective wealth preservation…
Well said. You can only define your specific risk by reference to your specific objectives. If, for example, you are a dividend investor, you want a sharp decline so you can get greater yield and more shares for the same dollars invested. If you are planning to follow a Trinity strategy through liquidation, then a market decline is very risky for you.
I own QYLD but the more I think to it and look at portfolio simulations the more I think that makes no sense in the long run even for retirees because it does not have any added safety compared to usual balanced mutual fund or stock/bond ETF. The large yield seems misleadingly attractive because it makes you think you could get a large cash value flow but that is not true if inflation is taken into account. To keep up with the inflation and stock value devaluation, some % of that yield would need to be reinvested, let's say 3-4%. This would de facto reduce the dividend yield that could be used for the cash flow. In addition this is still a stock with unpredictable fluctuations. Retirees would still need to consider the 3-4% portfolio value withdraws rule to avoid failing the retirement plan. In other words, if the stock drops and stays there for a long time you would need to cover the loss of yield value by selling some stocks. So at the end if you don't want to risk failing your plan, only 3-4% of the yield could be used for the cash flow, the remaining needs to DRIP.
Hey Joe! I am a recent subscriber. Just wanted to let you know I enjoy your videos. They are informative and concise, and I like your enthusiastic and cheerful presentation. I am nearing retirement, and just thinking how much better many retirees could be financially if they considered ETF's such as QYLD, JEPI, NUSI etc. compared to what many retirees have done, such as dumping a lump sum of money into annuities.
THANK YOU so much for that feedback! I appreciate it! I agree annuities can be such a terrible product for so many people. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Excellent insight. I am a dividend growth investor mostly for just this reason. I own QYLD and reinvest the distributions from it across the entire portfolio.
THANK YOU both for weighing in! Yes, QYLD does not grow their dividend BUT it is a useful tool I believe in an overall portfolio to increase yield in a portfolio that also has overall dividend growth exceeding 4-5% year over year. 😎👍🏻 THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
I have qyld and ryld in my dividend portfolio but there only 2.8% each of the entire dividend portfolio…nice little cash flow every month from each to put into my other dividend stocks in the portfolio… every month …love the channel
This here is where the crucial difference lies. Capital appreciation investing is far more riskier because you cannot count on a replication of market conditions to be be able to catch the appreciated dollars of a stock. The covered call strategy is different because as long you are able to get your premium regardless of the market condition, you come out ahead.
I think it’s best to reallocate the dividend payment to other assets than to reinvest, in my opinion. Or you got a different strategy? The only thing I’m worried is the TAXES. I don’t plan on having this stock on my Roth IRA due to limited contributions.
I agree. The great thing about cash flow investing is it's a bit more protected against market volatility since the main focus isn't overall portfolio value. A dividend investor can be happy when the market goes up, because they'll see increased unrealized gains, and if the market goes down, they'll be able to buy more holdings at an increased dividend yield.
@@BleuSkiddew exactly. You will have a higher yield on cost in a shorter period of time than if there was no correction and the yield was still rather low.
Wait until it dips again. 5 times this year it has dipped down 4-5% percent. It pays 1% a month, so you want to buy low or a loss will eat months of dividends.
@@gymratt17 thats true, so in certain age it is great tool to claim back tax you get from money you invested in high yield as 12% though for longer period - it is completely shit etf. After you get all ROC each payment is being treated not as dividend but regular income! I think it is great tool for people who truly understand how QYLD works and how to take advantage of opportunity it gives. In other hands it is just a fun ride which you will have to pay later :/
Love the comments here. Yes, the dividend is actually treated as a Return of Capital (ROC) primarily though there may be times that portions of the dividend is treated as either long-term or short-term capital gains,. When your cost basis gets to $0.00 on the investment then future distributions/dividends that are normally ROC are actually taxed at the long-term capital gains rate, not as ordinary income. =) THANK YOU for watching and for leaving your $0.02 in the comments! I appreciate you guys! 😎👍🏻
Always like your videos and I really like QYLD investment idea. Question: in one of your videos on QYLD/RYLD tax situation, you explained portion of the distribution from QYLD is reported as "return of capital" . The return of capital will not reduce the number of shares but will lower the initial stock purchase price. But I have not seen this happen to the positions I have in my account. Cold you explain? Thanks!
I put 10k of my emergency fund into NUSI (75%) and QYLD (25%). With the cash I keep in a MM account and a few CD's there is very little chance I will need the money I put in. I watched your video a few months ago and thought I would try it out. I'm also dollar cost averaging in at $75/month NUSI and $25/month QYLD. So far it's slightly down on gains but overall up since I'm reinvesting the dividends. I do this since I max out my Roth, contribute a high percentage to my 401k and have a brokerage account. I have a high risk tolerance too. 😆
I have watched several videos about 'call options' and read some articles about, too, but I still don't understand it. If I bought QYLD simply as a dividend generator, is there a difference between this and other dividend ETFs or stocks? I understand that there is a difference in the nature of ETFs, but simply looking at my portfolio and assessing my dividends, and with regard to when to sell or when to buy, is there a difference in the process if I am not paying attention to call options or strikes?
Growth is my goal at this time, income is not. Most of my money is in S&P funds/stocks and I continue to regularly put a good portion into those investments; I have a small portion invested in QYLD where my dividends are re-invested every month. However, once I reach retirement age, assuming this fund is still in existence, I will move a good portion of the funds that were in growth into this fund for passive income.
"Cash flow" and total return ("portfolio value," in your words) are not somehow mutually exclusive and are not even diametrically opposed. At the end of the day, total return is all that matters, even for "income investors."
I am 8months away from retirement. Just moved small amount of cash into QYLD. Will move some more into RYLD and NUSI. Looking at them like bonds or emergency cash. When/if the market dips I’ll sell other equities in tax deferred accounts and pull the cash over to take advantage of lower tax impact.
Another level of risk to consider is an investment going to zero, such as Enron, World Com, GM, etc. Dot com bubble and real estate meltdowns were different, but both experienced some cases of total company meltdown. Diversifying would help to temper effect.
Love the dog on the couch!! Yes, the biggest risk is having to sell when a stock is down because I need cash, so I have other stocks for that. I have both QYLD & RYLD, total creeping up to 10% overall. I'm on the verge of living off only my dividends and meager social security, so building up income, but also diversely invested in dividend growth stocks. Your videos have given me new tools for evaluating the dividend and which to keep and build on. Thank you for your excellent work. :)
THANK YOU so much for that feedback Nemo! I really appreciate it. =) YOU ARE DOING GREAT! THANK YOU for watching and for leaving your $0.02 in the comments!
Forgive me if you covered this, but in 2021, and rising NASDAQ100 in general, QYLD may be more similar to a reverse mortgage than a dividend producer given the high percentage of return capital payments. One may need to model the tax consequences of a sell. Thank you for your work.
That's an interesting idea Kent, though I think the big difference is ROC for QYLD is a taxation concept. You are not losing ACTUAL VALUE due to the ROC. With a reverse mortgage you are actively losing the value of the property UNLESS it appreciates in value. There is a defined end to reverse mortgage payments to you whereas they could continue in perpetuity with QYLD. THANK YOU for watching Kent and for leaving your $0.02 in the comments! 😎👍🏻
I just started investing earlier this year and I believe I have finally started getting a great looking dividend portfolio going and qyld is a small percentage of my portfolio oh and I'm doing this in a Roth IRA 🤠
Back in July I split my savings account in half. Half staying in the savings account and half into RYLD and NUSI. I am up 3% over 4 months or 9% annually. A little better than the .03% annually from the credit union.
AWESOME JOE! I am currently 55/45 NUSI and QYLD in my emergency fund BUT I am going to be switching out NUSI for QRMI for the better downside protection. =) THANK YOU for watching Joe and for leaving your $0.02 in the comments! 😎👍🏻
Any idea how QYLD would perform in a bear market since they have only existed in a bull market? Perhaps the option premium portion of the fund could perform. The underlying capital would probably get smashed. If the capital gets smashed, how does the return of capital work out. As one can tell by my questions, I cannot get a grasp on QYLD.
GREAT QUESTION HANS! You are right that we just haven't experienced a prolonged bear market/correction with QYLD. I agree that there will still be volatility in the markets as many will continue to think that the market is going to rebound BUT I imagine QYLD would have to retain additional premium to keep the underlying investment built up. That unknown is why I will not YOLO into QYLD, LOL. THANK YOU for watching Hans and for leaving your $0.02 in the comments! 😎👍🏻
Hi Joe, I’m a new subscriber and really enjoy your fresh and enthusiastic videos. It’s great to see someone imparting what they KNOW rather than simply what they’ve heard somewhere else. Thanks you. I’m based in the UK and can’t see anything like QYLD on the London markets and I understand that it’s not possible for me to buy QYLD from this side of the Pond. Do you know if that’s true? I hold other US stocks but mainly CFD’s and I’m looking to find some income stocks as I’m about to retire. I’d appreciate your thoughts. Keep up the great work. Peter
the thing about it is you can watch the thing compund way easier than otherstocks say you yolo 10k thats 500 stocks in 5 years its doubled in 10 years its 2000 and so on thats with a drip so for me as a young person seeing that makes me go wow.
Have to subscribe and did. Just now. And curious about etf mutal bonds and funds along with the diversity of a corporate bond etf. Like HYMU & SPHY. 1 is a mutual bond/fund and the other is corporate bonds/funds? From what I have seen both pay monthly dividends. Thank you for these videos and are exactly what I have been researching lately. Love the videos man you do a good job.
10% Qyld 20% Vug 20 Voo and the rest of portfolio mix of dividend and growth stocks...I thing Qyld is low risk and I will be adding more so it will be same size as Vug and Voo..
I love/hold QYLD RYLD JEPI NUSI and DIVO. Even though I'm 35 and planning to retire in 30 years. I'm building it slowly while also buying QQQM QQQJ DGRO and other single stock dividend companies
You are doing it wrong. QYLD is monthly income with no growth, for people with a pot of retirement money who don't want to spend the principle. A 35 year old should be in high growth tech stocks. You will thank me in 20 years when you retire early. 5% crypto too.
@@formica. I have approximately 50-70k in crypto which I earn weekly dividends on my goals are dividend growth. I have a family of 6. most of my positions I build up are into single stock companies like for example I have 70 shares of JNJ. But I'm also building up my cc/dividend etfs along with growth etfs to build up a monthly income in case it's needed for my family as I'm building a dividend growth stock portfolio to compliment my pension and 457 plan in retirement. CC ETFs are in my opinion great alternatives to bonds and even rental properties for passive cash flow.
GREAT QUESTION GENE! GlobalX provides Supplemental Tax Information throughout the year on their website via the Form 19a. Here is a link to the October Form for QYLD: www.globalxetfs.com/content/files/19a-notice-QYLD-10.18.2021.pdf || YTD QYLD distributions are 99% Return of Capital and 1% Net Investment Income. For RYLD it is 67% Return of Capital, 28% Capital Gains, 4% Net Investment Income. Here is the link for RYLD: www.globalxetfs.com/content/files/19a-notice-RYLD-10.18.2021.pdf || THANK YOU for watching Gene and for leaving your $0.02 in the comments! 😎👍🏻
I am 47 years old and have a Roth IRA worth $226k that I can no longer contribute to since I am not employed. I put $26K into QYLD to grow the IRA. Should I sell some of the other investments in the portfolio (micron, Walmart, chewy, black stone) in the IRA and put it into QYLD to generate money to re-invest?
Hi Judi! GREAT JOB building up the $226,000 nest egg. I think your future investment choices definitely depend on what you are trying to accomplish. How much do you need to live on? Does this portfolio represent the entirety of your investment portfolio or just a portion? I personally think that if you are at the stage where you need cash flow then perhaps some of the value investments or those that are more growth oriented could be opportunities to transition to cash flow investments. THANK YOU for watching Judi and for leaving your $0.02 in the comments! 😎👍🏻
I don't see any capital appreciation in this fund. In fact there are some very hard drawdowns for various reasons. 5-year chart states the NAV was 25 bucks and it bottomed out at 15 currently residing just below 17. That is a 40% drawdown. If you're making 11% a year you made 55% while losing capital. 11% a year on $25 is great. 11% on $15 not so much. This implies you're holding the position the entire time. Am I wrong?
Hi Gerard! You can get the data from the GlobalX website, Yahoo! Finance and SeekingAlpha. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
This is EXACTLY what I needed!A steady income coming in and not necessarily growth. I need as much dividend to come in as safely as I can get. Any other funds you suggest would be greatly appreciated. I don’t like individual stocks because they are too risky and I would rather be spread out amongst a wide range of a ETF dividend paying fund can offer. Could you list ones that would just offer good paying dividends to survive on and not growth
I am glad the video was helpful BK! SCHD is a great dividend ETF that is balanced with capital appreciation, dividend growth and dividend yield though yield is only around 3%. It has outperformed Vanguard's Dividend ETF's VYM and VIG. THANK YOU for watching BK and for leaving your $0.02 in the comments! 😎👍🏻
Not having the cash when you need it is liquidity risk. Liquidity risk is what causes bankruptcies and financial crisis. Investment risk is simply a valuation situation. Not complicated.
You certainly can Tony! I just personally think the data supports that there are better ways to do that. QYLD is best utilized for cash flow now. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
I do own QYLD As a new investor, I am building QYLD to fund, first it's own growth and at a later date, generate monthly cash flow. How I define Risk Value Risk - The likelihood of losing principle independent of dividend or non-dividend payment. Cash Flow Risk - The likelihood of losing dividend value independent of principle investment up to a 23% (on average) principle loss. Principle Investment Net Risk or P.I.N.K. Slip - Am I getting what I paid for? If I buy into a position for value, am I getting value growth for the money invested. If I paid for dividend payout, am I getting consistent payouts, few dividend cuts both independent of dividend yield value? Please keep in mind, this is based on a overtime viewpoint.
Well said. I am going to cover QYLD in a future f=video and how it would look to DRIP into this investment given what we know so far. =) THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
@@AverageJoeInvestor I was going to type something fairly similar to the above comment regarding strategy. Considering a large investment that is similar to one closer to retirement, but planning to DRIP for the next several years on it. Would be super interesting to have a third video that evaluates merging DRIP and this video as a combined strategy and pros and cons. Love your channel!
You didn't mention the tax implications of something like QYLD. Part of the dividend investing game has to do with not just increasing dividends but paying a lower tax rate on your income and not all dividends support this part. So while its hard to beat the income generated by QYLD, it should be compared to a comparable investment in preferred/tax-advantaged dividend stocks.
I've got QYLD on the 5th and I'm cool with it but I just fairly missed the activity and that pissed me off because it did not tell you the upcoming activity and date when I was looking at it.
I had QYLD and XYLD, every month i had reinvested its dividend back to its stock to roll the snow ball bigger and bigger. I don'tc know if my strategy make sense and if it will underperforming the inflation hike and tax payment. Can you give me an advice?
A thing to keep in mind is that it’s not possible to lose money writing calls. Only equity…but since they ONLY sell call options they can’t lose money until they buy back shares.
Not a good definition of risk. If I want $10 at 3am because I want to get a snack at the local snack store, but my bank is closed at 3am so I do not have access to my savings account money, should I consider that bank risky?
To me, people who invest in QYLD should be looking for income. Basically spending only the dividends every month. In that case, it should perform even better in a bear market, since it would win even more of the calls that it sells. In this scenario, it doesn't appear to be that risky.
Not necessarily. Everything is priced in. If calls get less likely to end up in the money, they'll end up being cheaper, which means you either get lower yield on them, or have to make them riskier. Not to say QYLD is a bad idea (it's a decent chunk of my portfolio), but I wouldn't consider it particularly effective against a downturn.
Yes I do have it, retired and I use it as my cash flow for living.... I am not looking for the value of the asset to grow I like it staying flat or fluctuation +/- 10%.. that is prime to get that Covered call monthly divided of .008 to .01... on 1,000,000 that's $8K-$10K a month. adding SS# to it I have a nice monthly income without touching the original investment...
I really like your videos, but I don't understand? How can I know if QYLD is beneficial or not? I have a monthly contribution strategy. Give your opinion.
GREAT QUESTION EDUARDO! If you are in the accumulation stage of investing and you want to grow a dividend portfolio over time, then I think QYLD can be a part of a portfolio strategy but QYLD is at its best when utilize for Cash Flow RIGHT NOW. So it depends on your investing goals. THANK YOU for watching Eduardo and for leaving your $0.02 in the comments! 😎👍🏻
I have to be honest with you that this AM I noticed ONL in my Portfolio and freaked out because I was not aware that O was spinning off assets and I thought somebody had hacked my account. LOL I will consider making a video on that. =) THANK YOU for watching and for leaving your $0.02 in the comments. =)
QYLD has been losing value since the inception. So the interest has to compensate the fall in value. I Wonder if QYLD will return to the original value. And also it lost the value in QE time lapse also. I am tempted to buy but i dont want to have a dividend with the empty hands in value. What are the thoughts of the comunity?
The problem is the unlimited downside …. I find that is better to buy QYLD when the market dips heavy, say 5-10 percent or start loading in QYLD if there is another crash like covid
GREAT QUESTION! You can definitely treat QYLD like an annuity where you are not really concerned about portfolio and are OK with losing a small % over the long term IF the dividend continues to pay at a high level. As to whether your $100K is SAFE I would say at any time you COULD experience a market downturn and your portfolio could be as low as $60-$70K as we've found that QYKLD will track the QQQ pretty closely (COVID Correction). THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Good analysis. For those approaching retirement, I think these make so much more sense than high yield bond funds. However I don't understand the rationale for someone in their growth phase dca into these. Rather they should purchase the traditional ETFs for the growth, then transfer to these income focused ETFs when needing the portfolio to generate income. Believe you will be better off. For me, I am considering taking 500K and splitting it between QYLD and JEPI, when combined with Social Security it will cover my burn rate. ( I will Keep the other 93% of the portfolio as is more growth focused. For millennials reading and believe I may have missed some decimal places, NO, I achieved my size of portfolio the long slow method of letting compound interest do its job. No YOLOs here.
Jon, any info on what happens to those two funds during bear markets? As an example, if in 2022 the S&P index is down 12% and in 2023 it goes down another 20%, how would that affect the 500k split between QYLD and JEPI? I was thinking of the same strategy.
@@racerx6 i would expect (obviously} that the price per share will be down But funds would be making income on their non exercised covered calls. Do you concur?
@@buyerclub2 I don't know enough about it, but it does make sense. I too, am not concerned about the principal reduction, I just want to generate more income. I figure inn the months that I don't need the extra income, I could just buy more shares.
Just park money there and let it grow. QYLD and RYLD had been compared to the part 10 years of record breaking growth. Should we go sideways or down, those appreciation stock will be dogs and these two will be kicking out Divs. It would be nice to get back to their pre covid prices so spread the word.
I like QYLD, but I also want to leverage growing dividends. I plan to use QYLD as a bridge to generate more income while a position in SCHD grows. Over time, more income will come from SCHD, as it is based on holding companies with growing dividends. I also like the idea of using QYLD and NUSI together as a “not quite emergency” fund. Keep 1-2 months in cash, while months 3-6 are 70% NUSI , 30% QYLD. This will keep your emergency fund from being eroded by inflation over time.
I'm pretty much on this same train. About $14K split between QYLD, NUSI, and SCHD. I am, however, on the fence about continuing to DRIP the dividends, or simply grab the cash. It's not much cash, I know, but it returns a hell of a lot better than a savings account in terms of interest or bonds.
@@twloughlin Im keeping the dividends in cash and occasionally putting some back at the dips. It is the emergency cash and eventually I’ll need new tires.
@@DavidSmith-lp5tz Well just recently I picked up a very small side hustle, and I am taking $200/month and buying QYLD with it. I find it hard to beat in terms of short-term return for this small portion of the portfolio. Maybe that gets me new tires and a new pair of shoes each year 😀
A Risky investment is a growth start up stocks. Not a income generator that you will almost 100 percent make money on if you hold it for 7 years and great chance to double your money. QYLD pays you as You need it and that is why I need it every month paying me
Hi Kurt! All things being equal I think an ETF is always better than an individual stock. That being said, I don't think QYLD should be 100% anybody's entire portfolio. THANK YOU for watching Kurt and for leaving your $0.02 in the comments! 😎👍🏻
EPD hasn't been $6 since July 2000 unless there were splits. The midstreams are coupled to the price of oil which is strong now but will peak. $39000 in EPD is paying ~ $750 a quarter or $250 a month. I would diversify unless you have 10 other holdings.
Thanks again for the video Joe. I also have an excel doc like you do that calculates my dividend income and I just updated it and to my surprise my highest common stock (aka not HNDL, PFFD or RYLD) was CRWS!! Their special dividend smoked my other common stocks. (Rumor is the company is own by a nice old man that loves to give back to investors) i have a Second part to this comment/question: I think energy will really take off and im looking for dividend growth companies. I own AQN and am very happy with them. Im leaning XEL but have looked into D and CNP however they just cut their dividends and that scared me. (Non Partnerships)
Average Joe Investor, In the comments you received on QYLD in the past year, do folks see QYLD as a stock and not an index of stocks used for covered calls which leads people to see QYLD as a much more riskier investment than its performance history shows?
GREAT QUESTION JAY! I would say I get quite a variety of opinions on QYLD ibn the comments. Some people are YOLO'ing into QYLD, some are even doing it on margin, some see it like I do as a great tool in a portfolio to generate yield and others dismiss it entirely as an expensive way to underperform the market. THANK YOU for watching Jay and for leaving your $0.02 in the comments! 😎👍🏻
OK so what if you have your money in QQQ or similar, then a day before the EX-DIVIDEND DATE for QYLD you sell QQQ and put it in QYLD, keep it there until you get the dividend, then move it back again to QQQ?
Hi Dawn, it certainly is a strategy you could attempt, BUT there is definitely risk as QYLD will always dip in value by the cost of the dividend on the ex-dividend date so you run the risk of losing money if you try to time it perfectly. Certainly an interesting strategy. THANK YOU for watching Dawn and for leaving your $0.02 in the comments! 😎👍🏻
I've owned QYLD for a few years. Now that I'm retired; I'm glad I've owned it for a few years. Living on Dividends and not having to touch principle is the only way to go for me. Reinvest the dividend in down markets really helps to boost your monthly payout and increases the principle. Thanks for sharing your videos.
We haven’t experienced mid to longterm bear market in nasdaq 100. I think it’s quite risky you might lose years of dividends. It would take much much more time for QYLD to recover than QQQM
It’s a fair point to consider as the corrections we have seen in the life of QYLD have been short-lived. We just don’t know how QYLD will perform in an extended bear market. Yes, QYLD will win the call options for sure but they may have to be tactical to use that option premium to purchase additional underlying holdings. Hard to know for sure! THANK YOU both for watching and for leaving your $0.02 in the comments! 😎👍🏻
You’d win more call options in a bear market but their premium would likely be lower than when in an up market. Conversely put premiums would balloon in a bear market.
@@gerardbroussard6336 yes, agreed. Its a tradeoff, premiums would be smaller. Usually though, halfing your losses, more than makes up for halfing your premiums. The other item that turns in your favor, is that you don't have to keep repurchasing shares to make up for ones called away and when you do purchase shares, the cost is lower. To me, its amazing how good they've been in a raging bull market. Usually for call options, you want a sideways or lower trending market.
Make sure to leave your $0.02 in the comments! I am always open to your feedback! THANK YOU for taking time out of your day to watch AND leave a comment!
Well said, though I think the erosion has been very minor and is completely offset if using DRIP (Which we will talk about in a future video). If living off the dividend, I think the benefit of the much higher yield is better than the slight erosion downside BUT that's just my personal opinion. I don't advocate for 100% QYLD portfolios. =) THANK YOU for watching and for leaving your $0.02 in the comments!
Some folks buy qqq alongside qyld to get an average yield of 7% plus growth. Or you can buy qqqx which is a cef that does it for you
I have QYLD and NUSI to supplement my pension. Works well for me.
AWESOME GERONIMO! THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Very well done. I am getting ready to retire and I have about a 1% position in QYLD. I can live off my portfolio but why not put some in QYLD and live off the cash flow. I could put 12% in and support my family and live good on that. That is part of my strategy moving forward.
Thanks!
I have 3% to 5% of my portfolio in each of QYLD, RYLD, and XYLD. I have -- and intend to keep -- approximately 10% of my portfolio in cash to guard against sequence of returns risk, so I that I will not have to sell assets in a down market. My portfolio is structured 40% to cash flow, 10% cash, and 50% growth. The cash flow received covers all of my living expenses in retirement. In light of this, I don't view QYLD, RYLD, or XYLD as being risky.
ETA: I just recently discovered your channel and like your videos. I also appreciate the distinction you made about defining "risk" properly for the intended portfolio use.
AWESOME! THANK YOU so much for the feedback! Thank you for watching and leaving your $0.02 in the comments! 👍🏻
I just came across this video. I don`t know your name but I think you are very, very smart. Your definition of risk is the best that I have ever heard. Are you a financial expert of some kind. I have always heard of risk but never in the way you explain it. It is different for every person. Excellent !!!!
THANK YOU for that feedback Fernando! I really appreciate it! THANK YOU for watching and for leaving your $0.02 in the comments!
@@AverageJoeInvestor You are welcome
Very good vid. I have 10k shares of QYLD plus 4000 RYLD and 4 others others. I plan on having a least 10 total. I sell puts on god dividend stocks with good option. This usual gets me in at a very good Price. I like your strategy.
Thanks for sharing TL! I think the next evolution of my dividend portfolio, is going to be something like: 25 - 33% High-Yield (ARCC, WLKP, QYLD, etc.), 25-33% Balanced Quality Dividend Stocks (Good Yield and Above Average DGR) and then 25-33% Dividend Stocks that I can capture good option premium from covered calls. More to come on this. =) THANK YOU for watching TL and for leaving your $0.02 in the comments! 😎👍🏻
I’m an income investor so qyld, ryld and jepi are cash generators for me. I have a target cashlow for each position and will add to it until I’ve reached that goal. Depending on yield this comes down to an allocation size of about 3-5% of the overall portfolio. I’m well aware that they’re not going to appreciate but I have other positions for that.
Well Said Dominik! THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
do you have more 500 shares qyld??
Looking forward to your future drip video regarding QYLD. Thanks again.
You bet Adam! THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
I love QYLD and RYLD. They’re about 40% of my entire portfolio. Love the cash flow!
THANK YOU so much for that feedback! I really appreciate it. =) THANK YOU for watching and for leaving your $0.02 in the comments!
how many shares do you own
Risk is measured against your objective. Define your objective then measure the risk against your approach (ways and means) to that objective. Objective…growth, or objective…income, objective wealth preservation…
Well Said Norman! THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Well said. You can only define your specific risk by reference to your specific objectives. If, for example, you are a dividend investor, you want a sharp decline so you can get greater yield and more shares for the same dollars invested. If you are planning to follow a Trinity strategy through liquidation, then a market decline is very risky for you.
Yes, I use it when I am sitting on the sidelines waiting on entry for a correction.
AWESOME ARTHUR! THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
I own QYLD but the more I think to it and look at portfolio simulations the more I think that makes no sense in the long run even for retirees because it does not have any added safety compared to usual balanced mutual fund or stock/bond ETF. The large yield seems misleadingly attractive because it makes you think you could get a large cash value flow but that is not true if inflation is taken into account. To keep up with the inflation and stock value devaluation, some % of that yield would need to be reinvested, let's say 3-4%. This would de facto reduce the dividend yield that could be used for the cash flow. In addition this is still a stock with unpredictable fluctuations. Retirees would still need to consider the 3-4% portfolio value withdraws rule to avoid failing the retirement plan. In other words, if the stock drops and stays there for a long time you would need to cover the loss of yield value by selling some stocks. So at the end if you don't want to risk failing your plan, only 3-4% of the yield could be used for the cash flow, the remaining needs to DRIP.
I think is good if u have a good amount of money like 50k, so you can purchase QYLD and use the cash flow to buy stocks and other investement
Hey Joe! I am a recent subscriber. Just wanted to let you know I enjoy your videos. They are informative and concise, and I like your enthusiastic and cheerful presentation. I am nearing retirement, and just thinking how much better many retirees could be financially if they considered ETF's such as QYLD, JEPI, NUSI etc. compared to what many retirees have done, such as dumping a lump sum of money into annuities.
THANK YOU so much for that feedback! I appreciate it! I agree annuities can be such a terrible product for so many people. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Qld is new for me. I like the 100 companies it represents
Cash flow my objective. Thank you.
AWESOME! THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Excellent insight. I am a dividend growth investor mostly for just this reason. I own QYLD and reinvest the distributions from it across the entire portfolio.
QYLD is not a dividend growth instrument, just consistent dividend. But it makes sense to diversify.
@@formica. you are absolutely correct. That is why I invest the income from QYLD across the entire portfolio rather than dripping.
THANK YOU both for weighing in! Yes, QYLD does not grow their dividend BUT it is a useful tool I believe in an overall portfolio to increase yield in a portfolio that also has overall dividend growth exceeding 4-5% year over year. 😎👍🏻 THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
I think using the dividends to reinvest back into or even distribute into a different dividend fund or stocks is KEY.
I have qyld and ryld in my dividend portfolio but there only 2.8% each of the entire dividend portfolio…nice little cash flow every month from each to put into my other dividend stocks in the portfolio… every month …love the channel
THANK YOU so much for that feedback! I really appreciate it. =) THANK YOU for watching and for leaving your $0.02 in the comments!
Good Analysis 👍 I am enjoying my monthly income from QYLD so far.
THANK YOU so much for that feedback! I really appreciate it. =) THANK YOU for watching and for leaving your $0.02 in the comments!
This here is where the crucial difference lies. Capital appreciation investing is far more riskier because you cannot count on a replication of market conditions to be be able to catch the appreciated dollars of a stock. The covered call strategy is different because as long you are able to get your premium regardless of the market condition, you come out ahead.
Well Said! THANK YOU for watching and for leaving your $0.02 in the comments! =)
I think it’s best to reallocate the dividend payment to other assets than to reinvest, in my opinion. Or you got a different strategy? The only thing I’m worried is the TAXES. I don’t plan on having this stock on my Roth IRA due to limited contributions.
I agree. The great thing about cash flow investing is it's a bit more protected against market volatility since the main focus isn't overall portfolio value. A dividend investor can be happy when the market goes up, because they'll see increased unrealized gains, and if the market goes down, they'll be able to buy more holdings at an increased dividend yield.
@@Ape-7 It is contingent on whether the dividends are qualified or non-qualified.
@@BleuSkiddew exactly. You will have a higher yield on cost in a shorter period of time than if there was no correction and the yield was still rather low.
The percentages changed in the nasdaq 100. Higher percent of pepsi and costco. It resets as does S&P index every year that also mitigates qyld risk
Thanks Joe! Can you remind me your video about QYLD taxes?
I hold QYLD in my portfolio and about to increase the percentage pie wise , mainly looking for cash flow to fund other potential business.
AWESOME JORGITO! THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Wait until it dips again. 5 times this year it has dipped down 4-5% percent. It pays 1% a month, so you want to buy low or a loss will eat months of dividends.
I own QYLD in my portfolio. I'm close to retirement and it gives a baseline of monthly dividend income that helps manage cashflow easier as well.
That's not dividend, that's return of capital...
@@bartz4439 yes for tax purposes it is largely a return on capital but it still stands that as a monthly income it helps smooth out the cash flow.
@@gymratt17 thats true, so in certain age it is great tool to claim back tax you get from money you invested in high yield as 12% though for longer period - it is completely shit etf. After you get all ROC each payment is being treated not as dividend but regular income!
I think it is great tool for people who truly understand how QYLD works and how to take advantage of opportunity it gives. In other hands it is just a fun ride which you will have to pay later :/
Love the comments here. Yes, the dividend is actually treated as a Return of Capital (ROC) primarily though there may be times that portions of the dividend is treated as either long-term or short-term capital gains,. When your cost basis gets to $0.00 on the investment then future distributions/dividends that are normally ROC are actually taxed at the long-term capital gains rate, not as ordinary income. =) THANK YOU for watching and for leaving your $0.02 in the comments! I appreciate you guys! 😎👍🏻
@@AverageJoeInvestor ok, maybe in US it would, in UK we dont have this seperation (if im correct) except dividend/income.
About 8 - 9 % of my portfolio, currently using dividends to purchase other stocks I like (reits, MLPs, BDCs, and other dividend stocks)
Nice work Mark! THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
How about using QYLD’s monthly dividend to feed other stocks in an IRA or Roth?
Hi Paul! It’s certainly an idea! I may have to test that in the future. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Always like your videos and I really like QYLD investment idea. Question: in one of your videos on QYLD/RYLD tax situation, you explained portion of the distribution from QYLD is reported as "return of capital" . The return of capital will not reduce the number of shares but will lower the initial stock purchase price. But I have not seen this happen to the positions I have in my account. Cold you explain? Thanks!
I put 10k of my emergency fund into NUSI (75%) and QYLD (25%). With the cash I keep in a MM account and a few CD's there is very little chance I will need the money I put in. I watched your video a few months ago and thought I would try it out. I'm also dollar cost averaging in at $75/month NUSI and $25/month QYLD. So far it's slightly down on gains but overall up since I'm reinvesting the dividends. I do this since I max out my Roth, contribute a high percentage to my 401k and have a brokerage account. I have a high risk tolerance too. 😆
AWESOME PAUL! THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Is reinvesting an option when you buy the etf?
Thanks for the video.. I too have a small position in QLYD and XYLD.. DIVO as well..
You bet Joe! THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
I have XYLD and JEPI on one account and will start RYLD and QYLD on other account next month. Will see the outcome next year.
AWESOME TUAN!! THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Good information. Thank you Average Joe.
My pleasure! THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
I have watched several videos about 'call options' and read some articles about, too, but I still don't understand it. If I bought QYLD simply as a dividend generator, is there a difference between this and other dividend ETFs or stocks? I understand that there is a difference in the nature of ETFs, but simply looking at my portfolio and assessing my dividends, and with regard to when to sell or when to buy, is there a difference in the process if I am not paying attention to call options or strikes?
Growth is my goal at this time, income is not. Most of my money is in S&P funds/stocks and I continue to regularly put a good portion into those investments; I have a small portion invested in QYLD where my dividends are re-invested every month. However, once I reach retirement age, assuming this fund is still in existence, I will move a good portion of the funds that were in growth into this fund for passive income.
AWESOME SHIRO! THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
What would occur for this stock not to be existing anymore and what happens to everyone’s money that is invested?
"Cash flow" and total return ("portfolio value," in your words) are not somehow mutually exclusive and are not even diametrically opposed. At the end of the day, total return is all that matters, even for "income investors."
I am 8months away from retirement. Just moved small amount of cash into QYLD. Will move some more into RYLD and NUSI. Looking at them like bonds or emergency cash. When/if the market dips I’ll sell other equities in tax deferred accounts and pull the cash over to take advantage of lower tax impact.
AWESOME DAVID! THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Another level of risk to consider is an investment going to zero, such as Enron, World Com, GM, etc. Dot com bubble and real estate meltdowns were different, but both experienced some cases of total company meltdown. Diversifying would help to temper effect.
Love the dog on the couch!! Yes, the biggest risk is having to sell when a stock is down because I need cash, so I have other stocks for that. I have both QYLD & RYLD, total creeping up to 10% overall. I'm on the verge of living off only my dividends and meager social security, so building up income, but also diversely invested in dividend growth stocks. Your videos have given me new tools for evaluating the dividend and which to keep and build on. Thank you for your excellent work. :)
THANK YOU so much for that feedback Nemo! I really appreciate it. =) YOU ARE DOING GREAT! THANK YOU for watching and for leaving your $0.02 in the comments!
Forgive me if you covered this, but in 2021, and rising NASDAQ100 in general, QYLD may be more similar to a reverse mortgage than a dividend producer given the high percentage of return capital payments. One may need to model the tax consequences of a sell. Thank you for your work.
That's an interesting idea Kent, though I think the big difference is ROC for QYLD is a taxation concept. You are not losing ACTUAL VALUE due to the ROC. With a reverse mortgage you are actively losing the value of the property UNLESS it appreciates in value. There is a defined end to reverse mortgage payments to you whereas they could continue in perpetuity with QYLD. THANK YOU for watching Kent and for leaving your $0.02 in the comments! 😎👍🏻
I agree
I just started investing earlier this year and I believe I have finally started getting a great looking dividend portfolio going and qyld is a small percentage of my portfolio oh and I'm doing this in a Roth IRA 🤠
Nice work Kyle! You are doing great! THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Back in July I split my savings account in half. Half staying in the savings account and half into RYLD and NUSI. I am up 3% over 4 months or 9% annually. A little better than the .03% annually from the credit union.
AWESOME JOE! I am currently 55/45 NUSI and QYLD in my emergency fund BUT I am going to be switching out NUSI for QRMI for the better downside protection. =) THANK YOU for watching Joe and for leaving your $0.02 in the comments! 😎👍🏻
You showed what happened to 250k for that time frame and talked about the dividends but what amount did you get during that time? 10k a year 15k or 5k
Excellent presentation on QYLD and its complexities
I own Qyld and a beginner and need a link to become a member so I may access to spreadsheets and etc. Great video!
Not having access to money when you need it is a liquidity issue/risk, not risk.
THANK YOU for weighing in Pete. Can you provide a more comprehensive definition we can work with? Always open to feedback. =)
Any idea how QYLD would perform in a bear market since they have only existed in a bull market? Perhaps the option premium portion of the fund could perform. The underlying capital would probably get smashed. If the capital gets smashed, how does the return of capital work out. As one can tell by my questions, I cannot get a grasp on QYLD.
GREAT QUESTION HANS! You are right that we just haven't experienced a prolonged bear market/correction with QYLD. I agree that there will still be volatility in the markets as many will continue to think that the market is going to rebound BUT I imagine QYLD would have to retain additional premium to keep the underlying investment built up. That unknown is why I will not YOLO into QYLD, LOL. THANK YOU for watching Hans and for leaving your $0.02 in the comments! 😎👍🏻
Neither has TESLA or BITCOIN
You have to find out until when we enter a bear market. We don't know.
In a bear market QYLD will go down significantly in price and the dividend will go down significantly.
@@stevencanal4178 can you explain why you draw those conclusions?
Hi Joe, I’m a new subscriber and really enjoy your fresh and enthusiastic videos. It’s great to see someone imparting what they KNOW rather than simply what they’ve heard somewhere else. Thanks you. I’m based in the UK and can’t see anything like QYLD on the London markets and I understand that it’s not possible for me to buy QYLD from this side of the Pond. Do you know if that’s true? I hold other US stocks but mainly CFD’s and I’m looking to find some income stocks as I’m about to retire. I’d appreciate your thoughts. Keep up the great work. Peter
the thing about it is you can watch the thing compund way easier than otherstocks say you yolo 10k thats 500 stocks in 5 years its doubled in 10 years its 2000 and so on thats with a drip so for me as a young person seeing that makes me go wow.
Thoughts on ORC as cash flow??
xyld doesnt get enough love. i have both and xyld does very well also
Thx for the video! The price of qyld seems declining over time. Is there any reason behind that?
Have to subscribe and did. Just now. And curious about etf mutal bonds and funds along with the diversity of a corporate bond etf. Like HYMU & SPHY. 1 is a mutual bond/fund and the other is corporate bonds/funds?
From what I have seen both pay monthly dividends.
Thank you for these videos and are exactly what I have been researching lately. Love the videos man you do a good job.
Love your content. Thank you for the hard work.
10% Qyld 20% Vug 20 Voo and the rest of portfolio mix of dividend and growth stocks...I thing Qyld is low risk and I will be adding more so it will be same size as Vug and Voo..
AWESOME! THANK YOU for watching Richie and for leaving your $0.02 in the comments! 😎👍🏻
Ths for analysis & sharing.
Great video.
I love/hold QYLD RYLD JEPI NUSI and DIVO. Even though I'm 35 and planning to retire in 30 years. I'm building it slowly while also buying QQQM QQQJ DGRO and other single stock dividend companies
Add some CEFs, add XYLD, sub out DGRO for GDRW and we have the same portfolio.
*DGRW
Well Done Christopher! It sounds you are on your way! THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
You are doing it wrong. QYLD is monthly income with no growth, for people with a pot of retirement money who don't want to spend the principle. A 35 year old should be in high growth tech stocks. You will thank me in 20 years when you retire early. 5% crypto too.
@@formica. I have approximately 50-70k in crypto which I earn weekly dividends on my goals are dividend growth. I have a family of 6. most of my positions I build up are into single stock companies like for example I have 70 shares of JNJ. But I'm also building up my cc/dividend etfs along with growth etfs to build up a monthly income in case it's needed for my family as I'm building a dividend growth stock portfolio to compliment my pension and 457 plan in retirement. CC ETFs are in my opinion great alternatives to bonds and even rental properties for passive cash flow.
Does QYLD and RYLD take the same approach on taxes?
GREAT QUESTION GENE! GlobalX provides Supplemental Tax Information throughout the year on their website via the Form 19a. Here is a link to the October Form for QYLD: www.globalxetfs.com/content/files/19a-notice-QYLD-10.18.2021.pdf || YTD QYLD distributions are 99% Return of Capital and 1% Net Investment Income. For RYLD it is 67% Return of Capital, 28% Capital Gains, 4% Net Investment Income. Here is the link for RYLD: www.globalxetfs.com/content/files/19a-notice-RYLD-10.18.2021.pdf || THANK YOU for watching Gene and for leaving your $0.02 in the comments! 😎👍🏻
Good analysis. Guy reminds me of the Night King.
What is YOLO?
very good analysis, exactly what I wanted to know about QYLD.
just got another 2 grand this month from qyld....seems like a mitigated risk, I think i will go shopping
If you don't need the money it grows 12 percent per year
I am 47 years old and have a Roth IRA worth $226k that I can no longer contribute to since I am not employed. I put $26K into QYLD to grow the IRA. Should I sell some of the other investments in the portfolio (micron, Walmart, chewy, black stone) in the IRA and put it into QYLD to generate money to re-invest?
Hi Judi! GREAT JOB building up the $226,000 nest egg. I think your future investment choices definitely depend on what you are trying to accomplish. How much do you need to live on? Does this portfolio represent the entirety of your investment portfolio or just a portion? I personally think that if you are at the stage where you need cash flow then perhaps some of the value investments or those that are more growth oriented could be opportunities to transition to cash flow investments. THANK YOU for watching Judi and for leaving your $0.02 in the comments! 😎👍🏻
I don't see any capital appreciation in this fund. In fact there are some very hard drawdowns for various reasons. 5-year chart states the NAV was 25 bucks and it bottomed out at 15 currently residing just below 17. That is a 40% drawdown. If you're making 11% a year you made 55% while losing capital. 11% a year on $25 is great. 11% on $15 not so much. This implies you're holding the position the entire time. Am I wrong?
Do you know where to get historical public domain QYLD monthly distribution and yield data? Thanks!
Hi Gerard! You can get the data from the GlobalX website, Yahoo! Finance and SeekingAlpha. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Thanks!
This is EXACTLY what I needed!A steady income coming in and not necessarily growth.
I need as much dividend to come in as safely as I can get. Any other funds you suggest would be greatly appreciated. I don’t like individual stocks because they are too risky and I would rather be spread out amongst a wide range of a ETF dividend paying fund can offer. Could you list ones that would just offer good paying dividends to survive on and not growth
I am glad the video was helpful BK! SCHD is a great dividend ETF that is balanced with capital appreciation, dividend growth and dividend yield though yield is only around 3%. It has outperformed Vanguard's Dividend ETF's VYM and VIG. THANK YOU for watching BK and for leaving your $0.02 in the comments! 😎👍🏻
Actually you are not going to grouth your portfolio, it will decrease.
Beware of that
Not having the cash when you need it is liquidity risk. Liquidity risk is what causes bankruptcies and financial crisis. Investment risk is simply a valuation situation. Not complicated.
What if I don't need the cash flow? Can I just reinvest the earnings and compound it?
You certainly can Tony! I just personally think the data supports that there are better ways to do that. QYLD is best utilized for cash flow now. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
@@AverageJoeInvestor Do you have any videos on good products/investments for growing your stash? Quickly? Thanks for posting useful content!
I do own QYLD
As a new investor, I am building QYLD to fund, first it's own growth and at a later date, generate monthly cash flow.
How I define Risk
Value Risk - The likelihood of losing principle independent of dividend or non-dividend payment.
Cash Flow Risk - The likelihood of losing dividend value independent of principle investment up to a 23% (on average) principle loss.
Principle Investment Net Risk or P.I.N.K. Slip - Am I getting what I paid for? If I buy into a position for value, am I getting value growth for the money invested. If I paid
for dividend payout, am I getting consistent payouts, few dividend cuts both independent of dividend yield value? Please keep in mind, this is based on a overtime
viewpoint.
Well said. I am going to cover QYLD in a future f=video and how it would look to DRIP into this investment given what we know so far. =) THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
@@AverageJoeInvestor I was going to type something fairly similar to the above comment regarding strategy. Considering a large investment that is similar to one closer to retirement, but planning to DRIP for the next several years on it. Would be super interesting to have a third video that evaluates merging DRIP and this video as a combined strategy and pros and cons. Love your channel!
What about QYLD dividend capture using margin?
I bought in December 15th but haven't received a dividend yet. Is there a 30 hold?
QYLD, pocket change once you build up enough, you could use that dividend to reinvest into other stocks.
You didn't mention the tax implications of something like QYLD. Part of the dividend investing game has to do with not just increasing dividends but paying a lower tax rate on your income and not all dividends support this part. So while its hard to beat the income generated by QYLD, it should be compared to a comparable investment in preferred/tax-advantaged dividend stocks.
Hey average Joe, would you drop $100k in QYLD and add $12k per year to jump start the dividend process?
I've got QYLD on the 5th and I'm cool with it but I just fairly missed the activity and that pissed me off because it did not tell you the upcoming activity and date when I was looking at it.
Good video could you show a graph with qyld reinvested and how it performed not just its price over time verses spy or qqq. Thanks
Sure thing George! In the next week or so. =) THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
I for one would love to see the impact of reinvestment. Thanks
I had QYLD and XYLD, every month i had reinvested its dividend back to its stock to roll the snow ball bigger and bigger. I don'tc know if my strategy make sense and if it will underperforming the inflation hike and tax payment. Can you give me an advice?
A thing to keep in mind is that it’s not possible to lose money writing calls. Only equity…but since they ONLY sell call options they can’t lose money until they buy back shares.
Not a good definition of risk. If I want $10 at 3am because I want to get a snack at the local snack store, but my bank is closed at 3am so I do not have access to my savings account money, should I consider that bank risky?
To me, people who invest in QYLD should be looking for income. Basically spending only the dividends every month. In that case, it should perform even better in a bear market, since it would win even more of the calls that it sells. In this scenario, it doesn't appear to be that risky.
THANK YOU for weighing in James. I appreciate it.
its dropped a lot at covid peak though
Not necessarily. Everything is priced in. If calls get less likely to end up in the money, they'll end up being cheaper, which means you either get lower yield on them, or have to make them riskier.
Not to say QYLD is a bad idea (it's a decent chunk of my portfolio), but I wouldn't consider it particularly effective against a downturn.
good point !
Thanks for imparting your wisdom in this forum. You've helped answer a question for me.
Yes I do have it, retired and I use it as my cash flow for living.... I am not looking for the value of the asset to grow I like it staying flat or fluctuation +/- 10%.. that is prime to get that Covered call monthly divided of .008 to .01... on 1,000,000 that's $8K-$10K a month. adding SS# to it I have a nice monthly income without touching the original investment...
Very Nice Kelly! THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
I really like your videos, but I don't understand? How can I know if QYLD is beneficial or not? I have a monthly contribution strategy. Give your opinion.
GREAT QUESTION EDUARDO! If you are in the accumulation stage of investing and you want to grow a dividend portfolio over time, then I think QYLD can be a part of a portfolio strategy but QYLD is at its best when utilize for Cash Flow RIGHT NOW. So it depends on your investing goals. THANK YOU for watching Eduardo and for leaving your $0.02 in the comments! 😎👍🏻
@@AverageJoeInvestor Thank tou !!!
Can you make a video about O's new spin off ONL and give us your thoughts?
I have to be honest with you that this AM I noticed ONL in my Portfolio and freaked out because I was not aware that O was spinning off assets and I thought somebody had hacked my account. LOL I will consider making a video on that. =) THANK YOU for watching and for leaving your $0.02 in the comments. =)
QYLD has been losing value since the inception.
So the interest has to compensate the fall in value.
I Wonder if QYLD will return to the original value.
And also it lost the value in QE time lapse also.
I am tempted to buy but i dont want to have a dividend with the empty hands in value.
What are the thoughts of the comunity?
My idea is. I don't care about principle so if I put 100k in this. Os my 100k safe for 10 years?
The problem is the unlimited downside …. I find that is better to buy QYLD when the market dips heavy, say 5-10 percent or start loading in QYLD if there is another crash like covid
@@VezzpGaming I agree I'm in usoi qyld. And nusi. I buy when they dip. Usoi is 20% dividend
GREAT QUESTION! You can definitely treat QYLD like an annuity where you are not really concerned about portfolio and are OK with losing a small % over the long term IF the dividend continues to pay at a high level. As to whether your $100K is SAFE I would say at any time you COULD experience a market downturn and your portfolio could be as low as $60-$70K as we've found that QYKLD will track the QQQ pretty closely (COVID Correction). THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Good analysis. For those approaching retirement, I think these make so much more sense than high yield bond funds. However I don't understand the rationale for someone in their growth phase dca into these. Rather they should purchase the traditional ETFs for the growth, then transfer to these income focused ETFs when needing the portfolio to generate income. Believe you will be better off. For me, I am considering taking 500K and splitting it between QYLD and JEPI, when combined with Social Security it will cover my burn rate. ( I will Keep the other 93% of the portfolio as is more growth focused. For millennials reading and believe I may have missed some decimal places, NO, I achieved my size of portfolio the long slow method of letting compound interest do its job. No YOLOs here.
Jon, any info on what happens to those two funds during bear markets? As an example, if in 2022 the S&P index is down 12% and in 2023 it goes down another 20%, how would that affect the 500k split between QYLD and JEPI? I was thinking of the same strategy.
@@racerx6 i would expect (obviously} that the price per share will be down But funds would be making income on their non exercised covered calls. Do you concur?
@@buyerclub2 I don't know enough about it, but it does make sense. I too, am not concerned about the principal reduction, I just want to generate more income. I figure inn the months that I don't need the extra income, I could just buy more shares.
Just park money there and let it grow. QYLD and RYLD had been compared to the part 10 years of record breaking growth. Should we go sideways or down, those appreciation stock will be dogs and these two will be kicking out Divs. It would be nice to get back to their pre covid prices so spread the word.
Is QYLD an alternative for an annuity?
I like QYLD, but I also want to leverage growing dividends. I plan to use QYLD as a bridge to generate more income while a position in SCHD grows. Over time, more income will come from SCHD, as it is based on holding companies with growing dividends. I also like the idea of using QYLD and NUSI together as a “not quite emergency” fund. Keep 1-2 months in cash, while months 3-6 are 70% NUSI , 30% QYLD. This will keep your emergency fund from being eroded by inflation over time.
Well said! THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
That’s me pretty much as well.
I'm pretty much on this same train. About $14K split between QYLD, NUSI, and SCHD. I am, however, on the fence about continuing to DRIP the dividends, or simply grab the cash. It's not much cash, I know, but it returns a hell of a lot better than a savings account in terms of interest or bonds.
@@twloughlin Im keeping the dividends in cash and occasionally putting some back at the dips. It is the emergency cash and eventually I’ll need new tires.
@@DavidSmith-lp5tz Well just recently I picked up a very small side hustle, and I am taking $200/month and buying QYLD with it. I find it hard to beat in terms of short-term return for this small portion of the portfolio. Maybe that gets me new tires and a new pair of shoes each year 😀
Ron Muhlenkamp considers "Risk" as losing value to inflation.
That is also a great way to think about it as well Steve. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
A Risky investment is a growth start up stocks. Not a income generator that you will almost 100 percent make money on if you hold it for 7 years and great chance to double your money. QYLD pays you as You need it and that is why I need it every month paying me
WELL SAID! THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
I currently have around 39 thousand in epd I got lucky and bought in around $6 living off dividends would it be wise to sell and switch over to qld
Hi Kurt! All things being equal I think an ETF is always better than an individual stock. That being said, I don't think QYLD should be 100% anybody's entire portfolio. THANK YOU for watching Kurt and for leaving your $0.02 in the comments! 😎👍🏻
EPD hasn't been $6 since July 2000 unless there were splits. The midstreams are coupled to the price of oil which is strong now but will peak. $39000 in EPD is paying ~ $750 a quarter or $250 a month. I would diversify unless you have 10 other holdings.
Thanks again for the video Joe. I also have an excel doc like you do that calculates my dividend income and I just updated it and to my surprise my highest common stock (aka not HNDL, PFFD or RYLD) was CRWS!! Their special dividend smoked my other common stocks. (Rumor is the company is own by a nice old man that loves to give back to investors)
i have a Second part to this comment/question:
I think energy will really take off and im looking for dividend growth companies. I own AQN and am very happy with them. Im leaning XEL but have looked into D and CNP however they just cut their dividends and that scared me. (Non Partnerships)
I still am a bit cautious with the energy sector myself. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
$80M is a micro-cap!
Average Joe Investor, In the comments you received on QYLD in the past year, do folks see QYLD as a stock and not an index of stocks used for covered calls which leads people to see QYLD as a much more riskier investment than its performance history shows?
GREAT QUESTION JAY! I would say I get quite a variety of opinions on QYLD ibn the comments. Some people are YOLO'ing into QYLD, some are even doing it on margin, some see it like I do as a great tool in a portfolio to generate yield and others dismiss it entirely as an expensive way to underperform the market. THANK YOU for watching Jay and for leaving your $0.02 in the comments! 😎👍🏻
AWESOME VIDEO. I was going through the same dilemma when considering these CC ETFs. Keep up the great work, Joe!
THANK YOU so much for that feedback! I really appreciate it. =) THANK YOU for watching and for leaving your $0.02 in the comments!
OK so what if you have your money in QQQ or similar, then a day before the EX-DIVIDEND DATE for QYLD you sell QQQ and put it in QYLD, keep it there until you get the dividend, then move it back again to QQQ?
Hi Dawn, it certainly is a strategy you could attempt, BUT there is definitely risk as QYLD will always dip in value by the cost of the dividend on the ex-dividend date so you run the risk of losing money if you try to time it perfectly. Certainly an interesting strategy. THANK YOU for watching Dawn and for leaving your $0.02 in the comments! 😎👍🏻
Why did their dividend jump to $0.49!? AMAZING! I had a HELLAVA month.
I've owned QYLD for a few years. Now that I'm retired; I'm glad I've owned it for a few years. Living on Dividends and not having to touch principle is the only way to go for me. Reinvest the dividend in down markets really helps to boost your monthly payout and increases the principle. Thanks for sharing your videos.
Thanks for sharing Johnnie! GREAT JOB! THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
We haven’t experienced mid to longterm bear market in nasdaq 100. I think it’s quite risky you might lose years of dividends. It would take much much more time for QYLD to recover than QQQM
In a bear market the price would go down, but the dividends should increase, because it would be winning all the call options that were sold.
It’s a fair point to consider as the corrections we have seen in the life of QYLD have been short-lived. We just don’t know how QYLD will perform in an extended bear market. Yes, QYLD will win the call options for sure but they may have to be tactical to use that option premium to purchase additional underlying holdings. Hard to know for sure! THANK YOU both for watching and for leaving your $0.02 in the comments! 😎👍🏻
You’d win more call options in a bear market but their premium would likely be lower than when in an up market. Conversely put premiums would balloon in a bear market.
@@gerardbroussard6336 yes, agreed. Its a tradeoff, premiums would be smaller. Usually though, halfing your losses, more than makes up for halfing your premiums. The other item that turns in your favor, is that you don't have to keep repurchasing shares to make up for ones called away and when you do purchase shares, the cost is lower. To me, its amazing how good they've been in a raging bull market. Usually for call options, you want a sideways or lower trending market.
QYLD lost value between 2020 and feb 2022!!
How?
Can QYLD regain value or will continue to fall from 17 to 10?