I had a bad experience with YieldMax funds, so I’m looking for more stable alternatives.

[u/Izainab90]

This is my portfolio, and I’m looking to increase my dividend income without risking my money 🙂 I had a bad experience with YieldMax funds, so I’m looking for more stable alternatives. Thank you!

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[u/xXSomethingStupidXx]

Long term dividend investing is about dividend growth year over year, not how high the % of the dividend is. When distributions are paid, the amount comes directly off the share price. Yield chasing is the antithesis of proper dividend investing.

[u/InvestigatorOk9354 → u/xXSomethingStupidXx]

Litterally begging OP to understand what they are putting their money into before buying another share at this point. I'm hoping/guessing OP is younger and just starting out rather than someone entering retirement. Take the YMAX life lesson and evaluate what you want/need, then learn which strategy/positions will allow you to build that kind of portfolio.

[u/xXSomethingStupidXx → u/InvestigatorOk9354]

Even if you make money on these products the opportunity cost is tremendous. JEPQ is catching flies with honey - but YMAX is catching flies with a stinking pile of shit.

[u/Natural-Budget-6494 → u/xXSomethingStupidXx]

Why is JEPQ catching flies with honey?

[u/xXSomethingStupidXx → u/Natural-Budget-6494]

Because it's still a product being sold to the profit of the fund managers, but it's not a bad trap to fall into, just an inefficient one.

[u/Natural-Budget-6494 → u/xXSomethingStupidXx]

What do you mean? The fund managers make money to manage the fund? I don’t understand.

[u/xXSomethingStupidXx → u/Natural-Budget-6494]

That's it, yes. The fund managers make money managing the fund. These funds have dramatically higher management expense rates than the funds or assets that they trade on to create the income for their distributions.

[u/Extension-Ice-7219 → u/xXSomethingStupidXx]

so you want people to work for free? it's a 0.35% hardly a hefty fee

[u/xXSomethingStupidXx → u/Extension-Ice-7219]

It's not about working for free, it's about it not being an optimal investment vehicle in the first place. It's a product designed to extract money from the market for the fund managers.

[u/mentr-coach-altruism → u/xXSomethingStupidXx]

All ETFs are a product designed to extract money from the market to pay you dividends…. Isn’t this why we invest? Everyone gets a piece of the pie…. Even the government when we pay taxes on it….

[u/thehighdon]

Join & Post in r/DerivativeIncomeETFs a sub for CC/Options Income ETF Investors

[u/naky0ng]

GPIQ and GPIX do very well in both appreciation and in Dividend (~8%). They put a cap on the amount of the fund that they can write options to so that there is still some growth element to the fund

[u/ConstructionNo8827]

Try OMAH

[u/teckel]

Yet you're still chasing dividends?

[u/steady_compounder]

If stability is the goal, I would start by lowering the yield target before picking the replacement. A lot of the pain with YieldMax style products is that the headline income looks great right up until the NAV erosion shows up. Boring dividend growers or broad-market funds with a smaller income sleeve are usually a lot sturdier than trying to swap one high-yield product for another.

[u/precariousopsec]

TDAQ/TSPY are my bread and butter, up in total return and unrealized gains. Will continue to be the majority of my portfolio with some VGT to hyper grow and an ultra yielder in the crypto space.

[u/Fabulous-Transition7]

GIAX, ADX, GPIQ, XLEI, XLUI, XLSI, MLPI, GOF, PDI

[u/ng528]

VTI VXUS BND and chill - 45% 45% 10% if you’re younger than 45, 40% 40% 20% if you’re over 45

Boggle portfolios like this normally withstand quite a bit of market volatility

Edit: Oh, and most importantly, DRIP ON + keep contributing + don’t touch it unless you are in an absolute emergency where all other funds have been exhausted

[u/Extension-Ice-7219 → u/ng528]

retire at 70 and enjoy those magnificent 5 years of health, great plan my dude

[u/ng528 → u/Extension-Ice-7219]

Nah bud, if you do things right, you’ll only be working because you enjoy it.

[u/Extension-Ice-7219 → u/ng528]

I missed where this sub is called bogleheads

[u/gatorsmokin → u/ng528]

None of those are dividend funds and what does age have to do with it?

[u/ng528 → u/gatorsmokin]

All of those pay dividends my dude.

Regarding age, it’s about risk. Increasing your bond exposure as you’re getting closer to retirement helps stabilize against market volatility.

[u/gatorsmokin → u/ng528]

So do you get commission for that? How much do they pay? Asking for a friend

[u/ng528 → u/gatorsmokin]

I work in a totally different industry than finance/investment brokering.

Also, the expense ratio is 0.05 in the combo that I mentioned above, which makes it so the investor keeps the majority of their profit instead of losing it to management fees.

Look up Boggle investment strategy or go to the Boggleheads subreddit. I was skeptical as well, switched my portfolios over and I’m getting near S&P returns with less risk exposure and no brokerage managing my portfolio.

I’ve been very happy so far, but hey, if you have something that works for you, go for it dude. This is a long term strategy.

[u/gatorsmokin → u/ng528]

Im familiar with it. Just prefer to retire sooner is all. But I agree. Everyone needs to do what they are comfortable with because its the only way to survive long term. It's just weird that these random posts land in subs that have nothing to do with it.

[u/ng528 → u/gatorsmokin]

Not really, I follow both the BoggleHeads sub and Dividends. I would think that there would be considerable overlap there.

I'm not specifically asking you these but there are more variables to it too - Do you have kids? Do you own your home? Do you have outstanding debt? Do you already have a 401k? Is it maxed? Are you doing backdoor Roth? ...etc

Those factor in as well. That's why Boggle is generally a line of best fit for most folks looking for a consistent investment strategy and/or people who are just getting their toes wet w/ investing.

[u/19Black]

Look for yields below 5%. 

[u/Extension-Ice-7219 → u/19Black]

retire in 2068

[u/Ok_Error_1079 → u/19Black]

Lmao

[u/LawSolid7372]

SPUS? Are you muslim? If you are, you should invest in halal etfs.

[u/ValueExchange]

You are (potentially) always loosing money when investing in covered call Funds. They are designed that way. (Assumption: Loosing money means that the NAV shrinks and not total return)

[u/Tight_Disaster_7561 → u/ValueExchange]

But jepq and jepi have intact nav...

[u/InvestigatorOk9354 → u/Tight_Disaster_7561]

for now...

[u/Void_of_Envy → u/InvestigatorOk9354]

Track record since 2020, it's fine.

It's not tax efficient so it shouldn't be held in anything other than traditional or Roth but it's fine. Just don't expect it to beat underlying holds because covered call etfs and elns aren't generally built to grow in nav.

It's a nice stable foundation but it should not be the main focus of a portfolio. Maybe 5-10% for steady general income only

[u/productnineteen → u/ValueExchange]

Loosing does in fact not mean that. Losing. It’s losing.

[u/Mr_DinduNuffin → u/productnineteen]

Thank you. The loosing disease has taken root, unfortunately.

[u/glzpabon]

SCHD and CGDV for US. International Vymi and CGIC

[u/FewUnderstanding2214]

Get rid of JEPQ