Ian Bezek
Investor/Writer, Latin American Equities, Former Analyst at Kerrisdale
The Global X SuperDividend ETF is a silly product that works well as a short to hedge long positions. Simply buying the world's highest-yielding dividend stocks is virtually guaranteed to underperform in almost all market conditions because of adverse selection. The fund has produced essentially zero total return, dividends included, over 15 years of a raging bull market. The short won't pay off in every rolling 12-month period, but it does in most. x.com x.com x.com
The Schwab US Dividend Equity ETF's dividend growth is underrated and can make it a stronger income investment than high-yield funds. A 3.5% yield growing 8-10% a year could become far more powerful than an 8-10% yield ETF with no dividend growth. Income can beat inflation, and spending the dividend leaves no NAV erosion, so principal keeps growing. x.com x.com
The new generation of covered-call income ETFs on the S&P 500 and Nasdaq 100 is preferable to traditional dividend funds like SCHD, serving as counterbalances built to underperform in bull markets and outperform in flat or down ones. Given a bullish long-term market outlook, plain S&P 500 or Nasdaq 100 funds should still outperform them over decades. x.com x.com
Quality dividend stocks look like a great place to be over the next few years as the crowded tech trade unwinds. Per @PeterBerezinBCA, in the early dotcom bust tech crashed while the rest of the market rose, so the hedge for stocks was other stocks. A quality dividend basket holds old-economy, cash-generative businesses at sane multiples, while the index hides 50% of its weight in names at 10 times sales. That outweighs a general dislike of dividends as inefficient, taxable compounding. x.com … Show more
Dividend growth, not yield, is the only dividend strategy worth following, since high-income strategies are mainly marketing and dividends are an inefficient form of compounding. Favor high-quality companies with solid balance sheets that raise dividends every year, such as Cintas, Casey's, Givaudan, S&P Global and L'Oréal. Dividend growth strategies have delivered superior returns to high-dividend ones, with considerably lower drawdowns in stress periods such as the March 2020 Covid shock. … Show more
Low-volatility and yield-replacement stocks are falling because rising bond yields make Treasuries a better source of income. Utilities, staples, health care and real estate drop when rates rise, so low-volatility names that usually outperform in turbulent markets are underperforming. Unusually, long Treasuries are falling as the VIX rises, unlike 2008 or 2020, because financing the war is increasing deficits. x.com x.com
SPYI, QQQI, JEPQ, JEPI and QDVO are tier-one income ETFs, pairing high yields with minimal NAV decay and solid records. NEOS' SPYI yields about 10-12% with very stable NAV, using a tax-efficient options strategy that keeps more upside than covered calls; QQQI applies it to the Nasdaq-100 for 13-15%. JPMorgan's JEPQ yields 8-10% via ELNs and JEPI 7-9% with a defensive tilt, while Amplify's QDVO yields 9-11% from growth stocks plus options income. x.com x.com x.com x.com x.com x.com
