Investors Alley

The universe of high-yield, covered call option strategy ETFs continues to grow. Our ETF Income Edge service provides research and recommendations concerning this type of ETF.

NextEra Energy Partners (NEP) was a dividend growth superstar for almost a decade. The company increased its dividend every quarter by 3% to 4%, giving 15% annual dividend growth. The average yield of 4% or so put NEP’s yearly compound total returns in the very high teens. However, the way NEP structured the debt it issued to fund its growth eventually put the company in a pickle.

My ETF Income Edge services provide investment ideas to subscribers from the rapidly growing world of option strategy and ultra-high-yield ETFs. I have a research universe of over 70 ETFs (and growing!) funds that I review regularly to bring the best ideas to my newsletter subscribers. For ETFs with a long enough track record, I like to look at the one-year total return for an initial cut to decide whether to investigate further in the fund.

The shipping stocks sector has been in a five-month severe decline. I have a couple of shipping companies in the Dividend Hunter portfolio, and the stock charts are not pretty. Should we average down, or will this get worse?

Bitcoin recently exploded from the $55,000-to-$65,000 trading range it had been in for months. As I write this, Bitcoin trades at $88,000, and it seems destined to crack the magical $100,000 level.

This week, we are doing a covered put analysis on Tesla (TSLA). The stock price has gone straight up over the last week or so, since the election.

Single-stock covered call ETFs have become a hot investment category. Investors are drawn to yields of 50% to more than 100% on underlying stocks like Tesla, NVIDIA, Meta, Palantir, and Coinbase.

I believe financial advisers often seem to assume their clients have a time machine. They like to explain that, with enough time, anyone can enjoy a financially secure retirement. For example, if you invest $200 a month every month for 40 years, your account will be worth $1.2 million if stocks gain an average of 10% a year.

I don’t look at fixed income based exclusively on Wall Street expectations. The news media and large investment firms like to play the interest rate game, investing based on where they think interest rates will go. I prefer using fixed-income investments to generate stable, high-yield cash income streams.

In February, we launched the ETF Income Edge service to help investors sort through the rapidly growing world of high-yield (mostly) option-strategy ETFs. To find the best ETFs to recommend to subscribers, I maintain a database of this type of fund. As I write this, I have 82 option strategy ETFs on my results tracking spreadsheet. I think some big-picture information about these funds may get you interested in subscribing to our newsletter. For example: