Latest news with #AmplifyCWPEnhancedDividendIncomeETF
Yahoo
29-05-2025
- Business
- Yahoo
Hot ETFs: Cybersecurity, Income & Bitcoin
(1:15) - What Kind of Growth Can We Expect From The Cybersecurity Industry? (6:50) - Amplify Cybersecurity ETF: HACK (12:45) -What Is Driving the Popularity of Option Income ETFs? (19:00) - What Type of Investor Should Be Using Covered Call Products? (23:50) - Amplify CWP Enhanced Dividend Income ETF: DIVO (28:00) - Should You Be Using Single Stock Covered Call ETFs? (33:10) - Amplify CWP International Enhanced Dividend Income ETF: IDVO (37:00) - Breaking Down Amplify's Bitcoin ETF Products: BITY & BAGY (43:40) - Episode Roundup: Podcast@ In this episode of ETF Spotlight, I speak with Christian Magoon, Founder and CEO of Amplify ETFs, about some intriguing areas of the market that have attracted investors amid ongoing market volatility: cybersecurity, income, and Bitcoin. The global market for cybersecurity products and services is expected to witness immense growth as more companies incorporate AI into their operations—while criminals are also leveraging AI technology to amplify and intensify cyberattacks. While many companies may cut discretionary spending this year due to rising economic uncertainty, cybersecurity remains an area they cannot afford to ignore. Google parent Alphabet GOOGL recently announced a deal to acquire cybersecurity startup Wiz for $32 billion. We could see an increase in M&A activity in the cybersecurity space. Launched in 2014, HACK was the first cybersecurity ETF designed to provide cost-effective exposure to companies in the growing cybersecurity industry. Income-hungry investors have been piling into ETFs that use options strategies to generate attractive yields. In addition to offering high income, these strategies typically help reduce portfolio volatility. The Amplify CWP Enhanced Dividend Income ETF DIVO focuses on high-quality large-cap companies with a history of dividend growth and writes covered calls on individual stocks. Meta Platforms META and Apple AAPL are among its top holdings. While DIVO has significantly outperformed the market leader—JPMorgan Equity Premium Income ETF JEPI—both have underperformed the S&P 500 ETF (SPY) over the long term on a total return basis. Who are the ideal users of these products? The Amplify International Enhanced Dividend Income ETF IDVO follows the same strategy as DIVO but invests in international stocks. Newly launched Amplify ETFs combine two of the hottest trends: Bitcoin and income. They employ a covered call strategy tied to Bitcoin price exposure through the iShares Bitcoin Trust IBIT. Tune in to the podcast to learn more. And be sure to watch for the next edition of ETF Spotlight! If you have any comments or questions, please email us at podcast@ Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Amplify CWP Enhanced Dividend Income ETF (DIVO): ETF Research Reports JPMorgan Equity Premium Income ETF (JEPI): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report Amplify CWP International Enhanced Dividend Income ETF (IDVO): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
04-05-2025
- Business
- Yahoo
3 High-Yield Dividend ETFs to Help You Grow Passive Income in 2025 and Beyond
The Schwab U.S. Dividend Equity ETF buys high-quality dividend growth stocks. The SPDR Portfolio S&P 500 High Dividend ETF buys in high-yield sectors and out-of-favor stocks. The Amplify CWP Enhanced Dividend Income ETF offers a covered call income stream. There is no single way to invest for income, and as such, there is no single exchange-traded fund (ETF) for income investors to buy. If you are trying to build a diverse income stream, in fact, you'll probably want to buy several ETFs. Here are three that work particularly well together, providing a combination of high yields and different investment styles that will cover most of what a dividend investor wants. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » The Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) is best viewed as a foundational investment, particularly with the trio of ETFs under consideration here. You may want to allocate 50% or more of your portfolio to this ETF. That's because it basically does what most dividend investors would do if they bought individual stocks. The starting point is to eliminate real estate investment trusts (REITs) and any stocks that have fewer than 10 consecutive annual dividend increases behind them. After that culling, a score is created that combines cash flow to total return, return on equity, dividend yield, and a five-year dividend growth rate into a single metric. The 100 stocks with the highest composite score get into the portfolio and are market-cap weighted. Essentially, the Schwab U.S. Dividend Equity ETF buys high-quality dividend growth stocks, with a bias toward higher-yielding stocks. The expense ratio is a modest 0.06%, and the dividend yield is currently around 3.7%, which is well above twice the level of the S&P 500. The SPDR Portfolio S&P 500 High Dividend ETF (NYSEMKT: SPYD) pairs up nicely with the Schwab U.S. Dividend Equity ETF because they take vastly different approaches, which leads to vastly different portfolios. The SPDR Portfolio S&P 500 High Dividend ETF is super simple. It just buys the 80 highest-yielding stocks in the S&P 500 index. The expense ratio is a reasonable 0.07%, and the current yield is around 4.3%. What's interesting is that this ETF tends to have heavy weightings in utility stocks and real estate investment trusts (REITs), two areas that are usually lacking in the Schwab ETF. Unlike the Schwab ETF, the SPDR Portfolio S&P 500 High Dividend ETF will often pick up out-of-favor stocks. In other words, the two ETFs aren't overlapping investments. They both add value in their own way. The SPDR Portfolio S&P 500 High Dividend ETF is probably appropriate for somewhere around 30% of your portfolio. The Amplify CWP Enhanced Dividend Income ETF (NYSEMKT: DIVO) is an options income ETF. It is actively managed, so there's no specific investment screen to describe. However, management has a penchant for high-quality dividend growth stocks. But those stocks -- usually only around 30 companies or so -- often have very modest yields. To compensate for this, the team strategically sells covered calls on a portion of the portfolio to generate income. This is a far more complex approach, as there is always something going on with the options side of the portfolio. Thus, the expense ratio is a bit high at 0.56%. And while the yield is listed as 4.7%, the actual payment fluctuates each month based on the success of the options strategy. This is more of an icing-on-the-cake type investment than a core income holding, and it should probably make up only 20% or less of your portfolio. That said, the Amplify CWP Enhanced Dividend Income ETF lets you buy stocks that would likely never be in your portfolio because they have lower yields. So, this ETF actually helps to add some growth to the mix, along with the income it generates. And it most certainly doesn't overlap with either of the two ETFs on the strategy front. The Schwab U.S. Dividend Equity ETF, the SPDR Portfolio S&P 500 High Dividend ETF, and the Amplify CWP Enhanced Dividend Income ETF work together to create a fairly well-balanced dividend stock portfolio. Although you should probably overweight the Schwab ETF relative to the other two ETFs, you can increase the income you generate by shifting the weightings around. Covering dividend growth, high-yield, and options income strategies, this trio provides an attractive overall income stream that should be resilient to the market's ups and downs over the long term, if history is any guide. The best part is that you'll have to do very little to maintain your portfolio because the ETFs are doing most of the hard work for you. Before you buy stock in Schwab U.S. Dividend Equity ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Schwab U.S. Dividend Equity ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $623,685!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $701,781!* Now, it's worth noting Stock Advisor's total average return is 906% — a market-crushing outperformance compared to 164% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 28, 2025 Reuben Gregg Brewer has positions in Amplify ETF Trust-Amplify Cwp Enhanced Dividend Income ETF. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 3 High-Yield Dividend ETFs to Help You Grow Passive Income in 2025 and Beyond was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
11-03-2025
- Business
- Yahoo
Retirement Investor With $21,600/Year In Dividends Needs $2,200 More Per Month – 'What High-Yield Stocks Will Get Me There in 3 Years?'
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Investing in dividends and balancing them with high-yield stocks is a popular strategy many investors use to grow their money and receive consistent revenue. While some investors prioritize stability and slow growth, others may seek higher yields to meet certain income targets, even if it means taking higher risks. This is also the case for an investor looking to restructure his IRA to generate $4,000 per month in dividend income. Currently, he has $150,000 allocated to income-focused ETFs, generating approximately $1,800 monthly, $21,600 per year. Don't Miss: Many don't know there are tax benefits when buying a unit as an investment — CEO of Integris gathered a team of senior investment managers who have $34.22 billion in combined owned and managed assets in the West Coast — 'I still have 75% of my IRA funds in growth-oriented ETFs. I have $150,000 in income ETFs producing $1,800/month. I would like to increase that to $4,000 to retire in 3 years although I can work an additional 2 years if necessary. I would basically use 25% of my IRA for living expenses and let the other 75% continue to grow only dipping into when necessary,' the investor said in his Reddit post. His concerns, however, involve the risk associated with high-yield investments, but he's willing to explore this option to bridge the gap between his current income and his target. The r/Dividends Reddit community has offered a mix of conservative and risky asset options. Below, we'll analyze the comments and highlight the most relevant advice. Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Conservative, Diversified ETF Investments One of the most detailed and relevant pieces of advice suggests the investor balance yield with risk management. 'I'd highly recommend meeting your goals with ETFs that have primarily high total returns, then secondarily, as high of yield as possible without outsized risk. To mitigate risk, I would remove individual companies from your plan and pick ETFs that have low volatility (if possible). I would also have a hedge to your equity positions, including some form of fixed income,' he explained. Furthermore, the commenter mentioned several asset options he would invest in if he were in the poster's situation. 'Personally, for an income-producing segment of my portfolio, I'd probably have something like [Amplify CWP Enhanced Dividend Income ETF (NYSE: DIVO)] for domestic stocks, [Invesco International Dividend Achievers ETF (NYSE: IDVO)] for international stocks, and various bond funds like [iShares 7-10 Year Treasury Bond ETF (NYSE: IEF)], [iShares 1-3 Year Treasury Bond ETF (NYSE: SGOV)], [Vanguard Total Bond Market ETF (NYSE: BND)], [iShares iBoxx $ Investment Grade Corporate Bond ETF (NYSE: LQD)], etc. This is below your desired yield, but it gives an idea of portfolio construction,' the Redditor Covered Call ETF Recommendations Several comments mentioned specific covered call ETFs, real estate investment trusts and securities that would, according to the Redditors who wrote them, help the investor reach his income goal. 'Consider a position in [NEOS S&P 500 High Income ETF (NYSE: SPYI)] and/or [Global X NASDAQ 100 Covered Call ETF (NYSE: QQQI)]. Both are covered call ETFs that pay 11% or more each year,' a Redditor suggested. A Reddit user advised the investor to diversify across several asset classes, including covered-call ETFs, individual dividend stocks and more. 'If you like covered call funds you could look at QQQI, SPYI, etc. Individual stocks: [Verizon Communications Inc. (NYSE: VZ)], [Pfizer Inc. (NYSE: PFE)], [Altria Group Inc. (NYSE: MO)], [PepsiCo Inc. (NASDAQ: PEP)]. Throw in some [business development companies] like [Ares Capital Corporation (NASDAQ: ARCC)] and [real estate investment trusts] like [Realty Income Corporation (NYSE: O)]/[Main Street Capital Corporation [NYSE: MAIN)] for diversity,' he wrote. This comment suggests other covered call ETFs with both low-yield and high yields but advised the investor to do his own research before putting his money in the game. 'These are some I would consider but do some research [JPMorgan Nasdaq Equity Premium Income ETF (NYSE: JEPQ)], [Global X S&P 500 Covered Call ETF (NYSE: XYLD)], SPYI, [Alerian MLP ETF (NYSE: AMLP)], [YieldMax Innovation Option Income Strategy ETF (NYSE: GPIQ)], [WisdomTree CBOE S&P 500 PutWrite Strategy Fund (NYSE: PUTW)], QQQI, [Global X MLP ETF (NYSE: MLPA)],' it says. Lower interest rates mean some investments won't yield what they did in months past, but you don't have to lose those gains. Certain private market real estate investments are giving retail investors the opportunity to capitalize on these high-yield opportunities. , which provides access to a pool of short-term loans backed by residential real estate. The best part? Unlike other private credit funds, Looking for fractional real estate investment opportunities? The features the latest offerings. This article Retirement Investor With $21,600/Year In Dividends Needs $2,200 More Per Month – 'What High-Yield Stocks Will Get Me There in 3 Years?' originally appeared on
Yahoo
03-03-2025
- Business
- Yahoo
The 3 Dividend ETFs I Would Buy if I Were Starting Over
When I started investing, my investment choices were pretty limited. Today, with the advent of exchange-traded funds (ETFs), there is more that investors can do, and the costs are attractively cheap. If I were a new dividend investor today, I probably wouldn't buy individual stocks. Instead, I would buy Schwab US Dividend Equity ETF (NYSEMKT: SCHD), S&P Portfolio S&P 500 High Dividend ETF (NYSEMKT: SPYD), and Amplify CWP Enhanced Dividend Income ETF (NYSEMKT: DIVO). Here's why. When I was in my teens, my father introduced me to investing. It created a lifelong passion and has allowed me to build a sizable nest egg for my family. (Thanks, Dad!) I really enjoy doing the legwork that's involved in researching stocks, keeping up to date on them, and, mostly, seeing the stock dividends hit my account every month. My enjoyment of the investing process is an important fact here because, back when I was in high school, the choices for dividend investors were, to revert back to my youth, "lame." That's not the case today, and a lot of it has to do with the growth of index investing and the creation of exchange-traded funds. If I were to start investing today, the enhanced landscape of opportunities would likely lead me to ETFs and a heavier focus on saving money (which is where most investors can do the most good for their long-term financial success). However, what dividend ETFs would I buy? I believe Schwab US Dividend Equity ETF, S&P Portfolio S&P 500 High Dividend ETF, and Amplify CWP Enhanced Dividend Income ETF work together to cover a huge amount of dividend investing ground. Schwab US Dividend Equity ETF only looks at companies that have increased their dividends annually for at least a decade, and it excludes real estate investment trusts (REITs). That's a sweet spot for me, as it highlights companies that have a commitment to returning value to shareholders via dividends and requires a company to be generally well-run. However, the ETF doesn't stop there. Once it has that pool of candidates, Schwab US Dividend Equity ETF creates a composite score looking at cash flow to total debt, return on equity, dividend yield, and the five-year dividend growth rate. The 100 stocks with the highest composite scores get into the ETF and are weighted by market cap, so the largest companies have the biggest impact on performance. Without getting into the details, this approach basically creates a portfolio of high-quality, high-yield dividend growth stocks. The cost? A tiny 0.06%. The ETF's dividend yield is roughly 3.5%, which isn't massive, per se, but is much higher than the 1.2% available from the S&P 500 index (SNPINDEX: ^GSPC). More importantly, Schwab US Dividend Equity ETF is doing exactly what most dividend investors are trying to do: buy good dividend stocks. With good dividend stocks covered, there are a few caveats to consider. Schwab US Dividend Equity ETF has no exposure to REITs and has limited exposure to utilities (largely because of the screening methodology). It also won't likely own a lot of companies that are turnaround stories. All of these exclusions have value in the dividend investing world. S&P Portfolio S&P 500 High Dividend ETF helps to fill in those gaps. While Schwab US Dividend Equity ETF uses a complex approach, S&P Portfolio S&P 500 High Dividend ETF's methodology is shockingly simple. It selects from the S&P 500 index, which ensures that the companies it is looking at are large and economically important. Then, it just picks the 80 with the highest yield. That tends to result in a heavy concentration in REITs and utilities. It will include high-yield stocks that would fall into the turnaround camp. The expense ratio is a reasonable 0.07%, and the yield is 4.2%. There's one more notable fact: The stocks in the ETF are equally weighted, so each investment has the same opportunity to impact performance. This helps to limit risk since no investment is disproportionately large. With just two ETFs, investors can cover a huge amount of dividend ground. But there's one more little income tactic that I would want to include, and that's selling covered calls. This can be a complicated tactic, so I don't do it myself. I "hired" Amplify CWP Enhanced Dividend Income ETF to do it for me. If I were starting over, I'd "hire" this ETF again, even though the 0.56% expense ratio is a bit high. (It is a specialized type of investing, so it probably deserves a premium price tag.) Amplify CWP Enhanced Dividend Income ETF is actively managed, so there's no detailed methodology to explain. Quite simply, the managers buy 30 or so dividend stocks that they believe are high-quality. Then, they opportunistically write covered calls on the portfolio. This is what I would be doing, too, if I wanted to create a covered call portfolio. The big benefit is that covered calls can help generate extra income for investors. The dividend will vary over time because of the nature of the covered call approach, but the yield is currently 4.5% or so. If I were to put this portfolio together, I would probably put 50% to 60% of it in Schwab US Dividend Equity ETF despite its lower yield. The focus on quality stocks is worth it. Then, I would split the rest of the portfolio equally between S&P Portfolio S&P 500 High Dividend ETF and Amplify CWP Enhanced Dividend Income ETF. That would help increase my yield, keep my risk minimized, and create a fairly well-diversified portfolio. The only thing I might add would be a broad-based bond ETF, and I'd be done, spending my time enjoying life and, of course, squirreling as much cash away as I could manage. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $323,920!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $45,851!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $528,808!* Right now, we're issuing 'Double Down' alerts for three incredible companies, and there may not be another chance like this anytime soon.*Stock Advisor returns as of February 24, 2025 Reuben Gregg Brewer has positions in Amplify ETF Trust-Amplify Cwp Enhanced Dividend Income ETF. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. The 3 Dividend ETFs I Would Buy if I Were Starting Over was originally published by The Motley Fool
