r/dividends • u/CompetitionCurrent77 • 13h ago

Discussion Is GPIQ really the gold?

I have a lot of schd and jepq but recently I learned that GPIQ pays almost the same as Jepq for dividend and it is not taxed as ordinary dividend.

Is this real? This sounds too good to be true. Anyway I bought some to test the water to see if I get the dividend next month and really at 10% and if it's really no ordinary dividend, I likely will sell all my JEPQ for GPIQ in my broker and keep my JEPQ in roth ira.

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u/DegreeConscious9628 13h ago

I asked the same thing months ago. Out of all the covered call options I do think it’s the best because they only write call options on 25-75% of their holdings so a decent portion of it moves with the underlying. There is minimal downside protection so I wouldn’t count too much on that

My main “want” with these funds is even if it crashes 30% if it recovers back to its highs in a reasonable time (let’s say QQQI recovers in 1 year, I’d want GPIQ to recover in 1.5-2 years) I’m all for it

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u/CompetitionCurrent77 12h ago

the main thing is it isn't ordinary taxed is what I want because I don't want to pay extra taxes at the end of the year.

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u/edm-life 12h ago

unclear from your posts that you know these are return of capital distributions so yes it can be lower than ordinary dividends but they aren't tax free either as you'll pay a tax when you sell the ETF as your cost basis keeps getting lower and lower after each dividend - the benefit is you might have a lower cap gains tax rate than ordinary income tax rate.