Latest news with #MLPs
Yahoo
2 days ago
- Business
- Yahoo
3 Ultra-High-Yield Pipeline Stocks to Buy With $1,000 and Hold Forever
Key Points Energy Transfer offers both a high yield and a strong pipeline of growth projects. Enterprise is one of the most consistent pipeline stocks around. Western Midstream has a huge yield and a growing produced water opportunity. 10 stocks we like better than Energy Transfer › Pipeline operators with strong cash flow, steady growth projects, and well-covered payouts can be the backbone of an income portfolio. Let's look at three master limited partnerships (MLPs) that offer ultra-high yields, dependable operations, and steady growth. To begin investing in these names, $1,000 is a great starting point. But these have the type of steady operations that you can also feel free to dollar-cost average into over time. Energy Transfer -- 7.6% Yield Energy Transfer (NYSE: ET) is entering its next phase of growth with plenty of projects in its pipeline. The company recently announced the $5.3 billion Desert Southwest pipeline, a project that will transport natural gas coming from the Permian Basin to the Arizona and New Mexico markets. Backed by long-term contracts, it will be part of Energy Transfer's expanding Transwestern network and is expected to be online by late 2029. That's on top of its multiphase Hugh Brinson Pipeline, which will help serve power plants and data centers in Texas. The company is also making progress on its long-awaited Lake Charles LNG export project, having now partnered with MidOcean Energy and secured several offtake deals. It is still looking for more equity partners before it green-lights the project, but it's getting close. With about $5 billion in growth capital expenditures (capex) this year -- half aimed at natural gas projects -- Energy Transfer is positioning itself to capture growing demand from both LNG (liquified natural gas) exports and energy-hungry data centers. Meanwhile, its financial foundation is solid. Leverage is at the low end of its targeted range, and it had a robust distribution coverage ratio of 1.7x last quarter based on its distributable cash flow (operating cash flow minus maintenance). Management has raised the distribution for 15 straight quarters, including a recent 3% increase, and expects 3% to 5% annual growth moving forward. With nearly 90% of 2025 earnings before interest, taxes, depreciation, and amortization (EBITDA) from fee-based contracts, this is a steady income generator with big growth optionality. Enterprise Products Partners -- 7% Yield Enterprise Products Partners (NYSE: EPD) is the definition of a reliable income stock. The company has increased its distribution for 26 consecutive years while having a strong coverage ratio and keeping leverage in check. About 80% of cash flow comes from fee-based contracts, many with take-or-pay provisions and inflation escalators, ensuring stability in any energy environment. Enterprise is conservatively run, with leverage just over 3x and debt locked in for an average of 18 years at only 4.7%. It self-funds most of its growth, avoiding the need for constant equity issuance. Meanwhile, it had a robust distribution coverage ratio of 1.6x in the second quarter. The company is also seeing strong growth opportunities. It will spend between $4 billion and $4.5 billion in growth capex this year, which is a significant jump from the $1.6 billion it spent in 2022. With most of its growth projects set to come online this year or next, Enterprise should start to see accelerating growth next year. Overall, Enterprise offers solid income, stability, and a clear runway for growth. Western Midstream -- 9.5% Yield Western Midstream (NYSE: WES) delivers the highest yield of the group, but its payout is anchored by steady cash flows and disciplined management. The company is backed by parent Occidental Petroleum, which owns over 40% of the partnership. Western Midstream benefits from a strategic alignment with its parent company, as its contracts with Occidental are heavily tied to cost-of-service and minimum volume commitments (MVCs). This gives it a highly visible cash-flow stream. The company is also starting to ramp up growth, with a focus on expanding its produced water business. Its two largest projects are the Pathfinder produced water system, which will handle over 800,000 barrels per day when it comes online in 2027, and the expansion of its North Loving natural gas processing plant. Western Midstream also recently agreed to acquire Aris Water Solutions (NYSE: ARIS) in a $2 billion deal. The acquisition is expected to be immediately accretive and brings with it over 625,000 acres of dedications, significant MVCs, and an expected $40 million in cost synergies. Financially, Western Midstream is in solid shape with 2.9x leverage. Management plans to keep leverage at around 3x, even as it increases growth spending, while maintaining mid-single-digit distribution growth over the long term. However, it is looking to grow its profitability more quickly than its distribution to help bolster its distribution coverage ratio. Western Midstream combines strong assets, clear growth drivers, a disciplined capital allocation strategy, and, most of all, a very robust yield that is sure to make any income-oriented investor happy. Do the experts think Energy Transfer is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Energy Transfer make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,071% vs. just 185% for the S&P — that is beating the market by 886.18%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $663,630!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,115,695!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 Geoffrey Seiler has positions in Energy Transfer, Enterprise Products Partners, and Western Midstream Partners. The Motley Fool recommends Enterprise Products Partners and Occidental Petroleum. The Motley Fool has a disclosure policy. 3 Ultra-High-Yield Pipeline Stocks to Buy With $1,000 and Hold Forever was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
4 days ago
- Business
- Business Wire
Alerian MLP ETF Declares Third Quarter Distribution of $0.98
DENVER--(BUSINESS WIRE)--The Alerian MLP ETF (NYSE Arca: AMLP) declared its third quarter 2025 distribution of $0.98 on Tuesday, August 12, 2025. The dividend is payable on August 18, 2025 to shareholders of record on August 13, 2025. AMLP Distributions: Payable Date: Monday, August 18, 2025 ALPS Portfolio Solutions Distributor, Inc. is also the distributor for the Alerian Energy Infrastructure ETF and the ALPS | Alerian Energy Infrastructure Portfolio. Please direct any inquiries to info@ or by calling 1-866-759-5679. Important Disclosures An investor should consider the investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus containing this and other information, call 1-866-759-5679 or visit Read the prospectus carefully before investing. Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemable. All investments are subject to risks, including the loss of money and the possible loss of the entire principal amount invested. Additional information regarding the risks of this investment is available in the prospectus. Investments in securities of Master Limited Partnerships (MLPs) involve risks that differ from an investment in common stock. MLPs are controlled by their general partners, which generally have conflicts of interest and limited fiduciary duties to the MLP, which may permit the general partner to favor its own interests over the MLPs. A portion of the benefits you are expected to derive from the Fund's investment in MLPs depends largely on the MLPs being treated as partnerships for federal income tax purposes. As a partnership, an MLP has no federal income tax liability at the entity level. Therefore, treatment of one or more MLPs as a corporation for federal income tax purposes could affect the Fund's ability to meet its investment objective and would reduce the amount of cash available to pay or distribute to you. Legislative, judicial, or administrative changes and differing interpretations, possibly on a retroactive basis, could negatively impact the value of an investment in MLPs and therefore the value of your investment in the Fund. The Fund invests primarily in a particular sector and could experience greater volatility than a fund investing in a broader range of industries. Investments in the energy infrastructure sector are subject to: reduced volumes of natural gas or other energy commodities available for transporting, processing or storing; changes in the regulatory environment; extreme weather and; rising interest rates which could result in a higher cost of capital and drive investors into other investment opportunities. All K-1s are received and processed by the Alerian MLP ETF. The Alerian MLP ETF distributes a single Form 1099 to its shareholders. This notice is provided to you for informational purposes only and should not be considered tax advice. Please consult your tax advisor for further assistance. If, due to tax law changes or for other reasons, an MLP in the portfolio is deemed to be taxable as a corporation rather than a partnership for federal income purposes, then income would be subject to federal income taxation at the MLP level. This would reduce the amount of cash available for distribution to the fund which could result in a reduction of the fund's value. The Fund is taxed as a regular corporation for federal income purposes, which reduces the net asset value of fund shares by the accrual of any deferred tax liabilities. Depending on the taxes paid by the fund as a result of income and/or gains from investments and/or the sale of MLP interests, the return on an investment in the Fund will be reduced. This differs from most investment companies, which elect to be treated as 'regulated investment companies' to avoid paying entity level income taxes. The ETF is taxed as a regular corporation and is subject to US federal income tax on taxable income at the corporate tax rate (currently as high as 21%) as well as state and local taxes. The Fund is classified for federal income tax purposes as a taxable regular corporation or so-called Subchapter 'C' corporation. As a 'C' corporation, the Fund accrues deferred tax liability for its future tax liability associated with the capital appreciation of its investments and the distributions received by the Fund on equity securities of master limited partnerships considered to be a return of capital and for any net operating gains. The Fund's accrued deferred tax liability, if any, is reflected each day in the Fund's net asset value per share. The deferred income tax expense/(benefit) represents an estimate of the Fund's potential tax expense/(benefit) if it were to recognize the unrealized gains/(losses) in the portfolio. An estimate of deferred income tax expense/(benefit) is dependent upon the Fund's net investment income/(loss) and realized and unrealized gains/(losses) on investments and such expenses may vary greatly from year to year and from day to day depending on the nature of the Fund's investments, the performance of those investments and general market conditions. Therefore, any estimate of deferred income tax expense/(benefit) cannot be reliably predicted from year to year. The Fund employs a 'passive management' - or indexing - investment approach and seeks investment results that correspond (before fees and expenses) generally to the performance of its underlying index. Unlike many investment companies, the Fund is not 'actively' managed. Therefore, it would not necessarily sell or buy a security unless that security is removed from or added to the underlying index, respectively. ALPS Advisors, Inc., registered investment adviser with the SEC, is the investment adviser to the Fund. ALPS Advisors, Inc. and ALPS Portfolio Solutions Distributor, Inc., affiliated entities, are unaffiliated with VettaFi and the Alerian Index Series. ALPS Portfolio Solutions Distributor, Inc. is the distributor for the Fund. Not FDIC Insured • No Bank Guarantee • May Lose Value About SS&C Technologies SS&C is a global provider of services and software for the financial services and healthcare industries. Founded in 1986, SS&C is headquartered in Windsor, Connecticut, and has offices around the world. Some 22,000 financial services and healthcare organizations, from the world's largest companies to small and mid-market firms, rely on SS&C for expertise, scale and technology. Additional information about SS&C (Nasdaq: SSNC) is available at SS&C ALPS Advisors, a wholly-owned subsidiary of SS&C Technologies, is a leading provider of investment products for advisors and institutions. With over $29.69 billion under management as of June 30, 2025, SS&C ALPS Advisors is an open architecture boutique investment manager offering portfolio building blocks, active insight and an unwavering drive to guide clients to investment outcomes across sustainable income, thematic and alternative growth strategies. For more information, visit ALR001946 8/13/2026
Business Wire
4 days ago
- Business
- Business Wire
Alerian Energy Infrastructure ETF Declares Third Quarter Distribution of $0.38617
DENVER--(BUSINESS WIRE)--The Alerian Energy Infrastructure ETF (NYSE Arca: ENFR) declared its third quarter 2025 distribution of $0.38617 on Tuesday, August 12, 2025. The dividend is payable on August 18, 2025 to shareholders of record on August 13, 2025. ENFR Distributions: Ex-Date: Wednesday, August 13, 2025 Record Date: Wednesday, August 13, 2025 ALPS Portfolio Solutions Distributor, Inc. is also the distributor for the Alerian MLP ETF and the ALPS | Alerian Energy Infrastructure Portfolio. Please direct any inquiries to info@ or by calling 1-866-759-5679. Important Disclosures An investor should consider the investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus containing this and other information, call 1-866-759-5679 or visit Read the prospectus carefully before investing. Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemable. All investments are subject to risks, including the loss of money and the possible loss of the entire principal amount invested. Additional information regarding the risks of this investment is available in the prospectus. Investments in securities of Master Limited Partnerships (MLPs) involve risks that differ from an investment in common stock. MLPs are controlled by their general partners, which generally have conflicts of interest and limited fiduciary duties to the MLP, which may permit the general partner to favor its own interests over the MLPs. A portion of the benefits you are expected to derive from the Fund's investment in MLPs depends largely on the MLPs being treated as partnerships for federal income tax purposes. As a partnership, an MLP has no federal income tax liability at the entity level. Therefore, treatment of one or more MLPs as a corporation for federal income tax purposes could affect the Fund's ability to meet its investment objective and would reduce the amount of cash available to pay or distribute to you. Legislative, judicial, or administrative changes and differing interpretations, possibly on a retroactive basis, could negatively impact the value of an investment in MLPs and therefore the value of your investment in the Fund. The Fund invests primarily in a particular sector and could experience greater volatility than a fund investing in a broader range of industries. The Fund may be subject to risks relating to its investment in Canadian securities. Because the Fund will invest in securities denominated in foreign currencies and the income received by the Fund will generally be in foreign currency, changes in currency exchange rates may negatively impact the Fund's return. Investments in the energy infrastructure sector are subject to: reduced volumes of natural gas or other energy commodities available for transporting, processing or storing; changes in the regulatory environment; extreme weather and; rising interest rates which could result in a higher cost of capital and drive investors into other investment opportunities. The Fund employs a 'passive management' - or indexing - investment approach and seeks investment results that correspond (before fees and expenses) generally to the performance of its underlying index. Unlike many investment companies, the Fund is not 'actively' managed. Therefore, it would not necessarily sell or buy a security unless that security is removed from or added to the underlying index, respectively. ALPS Advisors, Inc., registered investment adviser with the SEC, is the investment adviser to the Fund. ALPS Advisors, Inc. and ALPS Portfolio Solutions Distributor, Inc., affiliated entities, are unaffiliated with VettaFi and the Alerian Index Series. ALPS Portfolio Solutions Distributor, Inc. is the distributor for the Fund. Not FDIC Insured • No Bank Guarantee • May Lose Value About SS&C Technologies SS&C is a global provider of services and software for the financial services and healthcare industries. Founded in 1986, SS&C is headquartered in Windsor, Connecticut, and has offices around the world. Some 22,000 financial services and healthcare organizations, from the world's largest companies to small and mid-market firms, rely on SS&C for expertise, scale and technology. Additional information about SS&C (Nasdaq: SSNC) is available at About SS&C ALPS Advisors SS&C ALPS Advisors, a wholly-owned subsidiary of SS&C Technologies, is a leading provider of investment products for advisors and institutions. With over $29.69 billion under management as of June 30, 2025, SS&C ALPS Advisors is an open architecture boutique investment manager offering portfolio building blocks, active insight and an unwavering drive to guide clients to investment outcomes across sustainable income, thematic and alternative growth strategies. For more information, visit
Yahoo
11-08-2025
- Business
- Yahoo
Forget Energy Transfer? The Smartest High-Yield Energy Stocks to Buy With $100 Right Now.
Key Points Energy Transfer pays a 7.5%-yielding distribution backed by a rock-solid financial profile. Western Midstream and Plains All American Pipeline have even higher current yields. The fellow MLPs could also increase their payouts at faster rates in the future. 10 stocks we like better than Energy Transfer › Energy Transfer (NYSE: ET) stands out in the energy sector for its attractive distribution. The energy midstream giant currently yields over 7.5%. However, it might not be the optimal option for those seeking to turn $100 into a high-octane income stream. Fellow master limited partnerships (MLPs) Plains All American Pipeline (NASDAQ: PAA) and Western Midstream Partners (NYSE: WES) currently offer higher-yielding payouts (8.5% for PAA and 9.5% for WES) backed by similarly strong financial profiles. That makes them smarter ways to maximize your passive income production these days. A well-oiled, income-producing machine Plains All American Pipeline owns and operates midstream energy infrastructure focused on crude oil and natural gas liquids (NGLs). About 8 million barrels of oil and NGLs flow through its system of pipelines, storage terminals, and other assets each day. The MLP primarily collects a fixed fee as those volumes pass through its network (85% of its earnings after closing the pending sale of its Canadian NGL business). The company has a stable cash flow profile similar to Energy Transfer, with only 15% of its future earnings having commodity price exposure compared to about 10% for its larger rival. The oil pipeline company expects to produce enough cash to cover its high-yielding distribution by 1.75 times this year. That's a comfortable level. (It's currently above its 1.6x target.) It's not too far from Energy Transfer's current coverage level (nearly 1.9x through the first half of this year). Plains All American Pipeline also backs its payout with a strong balance sheet. The oil pipeline company exited the second quarter with a 3.3x leverage ratio, putting it toward the low end of its 3.25x to 3.75x target range. That's well below Energy Transfer's level, which is currently near the low end of its 4.0x to 4.5x target range. Energy Transfer's larger, more diversified business model allows it to have a higher leverage ratio. Plains' already strong financial profile will grow only stronger once it closes its Canadian NGL sale. The company's strong financial profile allows it to invest in expanding its operations. Plains invests in organic expansion projects and makes small bolt-on acquisitions. (It bought another 20% interest in the BridgeTex Pipeline Company in the second quarter.) These growth investments should enable the company to continue increasing its distribution. Plains All American expects to increase its payout by around 10% annually until it reaches its targeted 1.6x coverage level, and then it aims to grow its payment at the same rate as its cash flow. That's likely a faster pace than Energy Transfer, which targets annual distribution growth of 3% to 5%. Steady baseline income growth with upside potential Western Midstream primarily focuses on providing natural gas, crude oil, and produced water services to oil and gas companies in the Delaware, DJ, and Powder River Basins. Fee-based contracts supply much of its earnings. That enables the MLP to produce predictable cash flow to support its high-yielding dividend. The energy midstream company expects to generate $1.3 billion to $1.5 billion of free cash flow this year. That's enough money to cover its lucrative distribution and the capital expenses to maintain and grow its operations, with room to spare. The MLP also has a sub-3.0x leverage ratio, giving it additional financial flexibility. Western Midstream plans to use some of its excess financial capacity to buy Aris Water Solutions in a $1.5 billion cash and stock deal. That deal will enhance its operations and boost its free cash flow next year. Meanwhile, it has visible growth coming down the pipeline in 2027 from its recently approved North Loving II gas processing plant and Pathfinder Pipeline projects. The company's growth investments should support continued distribution increases. Western Midstream aims to deliver low- to mid-single-digit annual growth supported by the steady expansion of its core business. Additionally, it sees the potential for incremental distribution growth fueled by major expansion projects and acquisitions. Better income options Energy Transfer is an excellent MLP to buy for passive income. However, Plains All American and Western Midstream currently offer higher-yielding payouts. Further, those MLPs (which, like Energy Transfer, send a Schedule K-1 Federal Tax Form each year) could deliver higher income growth rates in the future. That makes them smarter investments for those seeking to maximize the income produced from every $100 they invest. Should you buy stock in Energy Transfer right now? Before you buy stock in Energy Transfer, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Energy Transfer 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 $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Matt DiLallo has positions in Energy Transfer. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Forget Energy Transfer? The Smartest High-Yield Energy Stocks to Buy With $100 Right Now. was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-07-2025
- Business
- Yahoo
3 Dividend-Paying ETFs to Buy in July Even if the S&P 500 Sells Off
Key Points Global X MLP ETF is a 7.5%-yielding ETF with little correlation to the broader market. The Schwab U.S. Dividend Equity ETF is a stellar choice for passive income investors looking for high yield and low expenses. The JP Morgan Nasdaq Equity Premium Income ETF generates passive income from growth stocks using options. 10 stocks we like better than Global X Funds - Global X Mlp ETF › The S&P 500 (SNPINDEX: ^GSPC) continues to roar higher as we approach the end of July. Not only is the index at an all-time high, but it's also up more than 27% from its April low. The "V-Shaped" recovery may have some investors hesitant to smash the buy button, even on top stocks. Folks in that boat may want to consider diversified exchange-traded funds (ETFs) that focus on generating passive income. That way, the return isn't solely dependent on stock prices going up. A trio of Motley Fool contributors think the Global X MLP ETF (NYSEMKT: MLPA), Schwab US Dividend Equity ETF (NYSEMKT: SCHD), and the JP Morgan Nasdaq Equity Premium Income ETF (NASDAQ: JEPQ) stand out as top ETFs to buy now. Invest in America's energy infrastructure with this high-yield ETF Lee Samaha (Global X MLP ETF): This ETF invests primarily in midstream master limited partnerships (MLPs) that own natural gas pipelines and storage assets. MLPs trade publicly but are treated as limited partnerships for tax purposes, which gives them advantages when making distributions to investors. As such, this ETF, which currently holds 20 infrastructure investments, offers investors significant distributions -- its current trailing-12-month distribution yield is 7.5%. Moreover, as the chart below demonstrates, its performance tends to have little correlation with the S&P 500 index. While that's not always a good thing, it does offer investors a way to invest without increasing their overall exposure to the S&P 500. In a nutshell, the ETF's performance is driven by sentiment regarding the long-term role of natural gas in the economy. That's sometimes been negative, not least due to the rise of renewable energy, causing concern over the long-term structural role of gas. That said, there has been a growing realization in recent years that natural gas is likely to play a crucial role in future energy provision, as its reliability and cost offset the intermittency of renewable energy sources. Moreover, it's an energy source abundantly available in the U.S. -- one that will help ensure domestic energy sufficiency. Low management fees and a high yield are only two reasons to love the Schwab U.S. Dividend Equity ETF Scott Levine (Schwab U.S. Dividend Equity ETF): One of the usual suspects when it comes to reliable ETFs that provide strong dividends, the Schwab U.S. Dividend Equity ETF is a great choice for investors looking to fortify their portfolios with a rock-solid source of passive income. In addition to its distribution that has a 30-day Securities and Exchange Commission (SEC) yield of 3.8%, the ETF has an extremely low total expense ratio of just 0.06%. With net assets of over $71 billion, the Schwab U.S. Dividend Equity ETF is an attractive option for risk-averse income investors for a variety of reasons. For one, companies that have market capitalizations over $70 billion represent about 62% of the fund's holdings -- an attractive feature since large-cap stocks usually demonstrate less volatility and more reliable dividends than smaller-cap stocks. Tech stalwart Texas Instruments and oil supermajor Chevron, for example, are the top-two positions among the ETF's 103 holdings. Both companies have market caps in excess of $195 billion, and they've demonstrated multiyear commitments to increasingly rewarding shareholders with dividends. Chevron's heavy weighting in the fund is unsurprising. Not only is Chevron one of the largest energy stocks by market cap, the energy sector comprises the largest share of positions in the Schwab U.S. Dividend Equity ETF. In fact, large energy stocks often return capital to shareholders via dividends. The S&P 500 may nudge lower this month, but if it does, generating steady passive income from the Schwab U.S. Dividend Equity ETF will take the sting out of it. This ETF's high yield is the real deal Daniel Foelber (JP Morgan Nasdaq Equity Premium Income ETF): The ETF was launched in May 2022. That year ended up being the worst calendar year for the Nasdaq-100 since 2008, and the new ETF offered a way to use the volatility of the underlying holdings in that index to earn income from options, dividends, and other means. The primary way the ETF earns income is by selling covered call options. Call options take away the potential upside of a stock in exchange for a guaranteed return. For example, the price of Nvidia (NASDAQ: NVDA) -- the largest holding in the Nasdaq-100 and the JP Morgan Nasdaq Equity Premium Income ETF -- is $170.78 per share at the time of this writing. An Aug. 15, 2025 call with a $175 share price at the time of this writing has a midpoint between the bid and ask price of $4.10. Someone selling that call option would collect $4.10 per share, but they would also have to sell Nvidia for $175 a share if the buyer of the option decides to execute it, which could happen if Nvidia is over $175 a share. The move will backfire if Nvidia soars, but because there's a guaranteed gain from the option income, the strategy can be effective for investors who are willing to sacrifice the upside potential of a stock in exchange for dividend income. And that's exactly the kind of investment objective the JP Morgan Nasdaq Equity Premium Income ETF aims to achieve. It's also worth understanding that stocks with higher volatility tend to command higher options premiums. So the premiums on the call options for stocks in the Nasdaq-100 will generally be higher than S&P 500 stocks. Or put another way, the buyer of a call option on a red-hot growth stock is going to be willing to pay more than they would for a call option on a stodgier company like Coca-Cola. The high options premiums are why the fund sports a whopping 11.2% 30-day SEC yield (as of June 30, 2025). Over the last three years, the JP Morgan Nasdaq Equity Premium Income ETF has only gained a modest 15.3% despite its holdings being similar to those of the growth-stock-powered Nasdaq-100. But factor in its dividend income, and the fund is up 61.4% -- which is close to the S&P 500. As you can see in the chart, investors would have produced an even larger return if they had just invested in the Nasdaq-100 without an income-oriented strategy. But the last three years have featured explosive gains for top growth stocks. If these stocks cool off or trade sideways for a while, the JP Morgan Nasdaq Equity Premium Income ETF will likely outperform the Nasdaq-100. The ETF features a 0.35% expense ratio, which is much higher than a low-cost index fund or sector ETF. However, the fund offers a service that would be extremely difficult to replicate without an ETF, so the fees could be worthwhile if the fund aligns with your investment objectives. The fund stands out as an excellent way to generate monthly passive income from growth stocks. However, it's worth understanding that the call premiums generated don't offer much downside protection, so the fund can feature similar volatility to the Nasdaq-100 during rapid and steep sell-offs. Should you invest $1,000 in Global X Funds - Global X Mlp ETF right now? Before you buy stock in Global X Funds - Global X Mlp ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Global X Funds - Global X Mlp 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 $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 28, 2025 Charles Schwab is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Daniel Foelber has positions in Nvidia. Lee Samaha has no position in any of the stocks mentioned. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron, JPMorgan Chase, Nvidia, and Texas Instruments. The Motley Fool recommends Charles Schwab and recommends the following options: short September 2025 $92.50 calls on Charles Schwab. The Motley Fool has a disclosure policy. 3 Dividend-Paying ETFs to Buy in July Even if the S&P 500 Sells Off was originally published by The Motley Fool Sign in to access your portfolio
