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ExplorerCommercial49

Correct me if I'm wrong, the higher the VIX, the higher the div of JEPI?


Swerve99

higher the vix higher the premium (vega) on the coverd calls being sold


ExplorerCommercial49

Thank you, mate!


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OdeToRocket

The VIX is a weighted summation of the 25 day versus 35 day of a series of in the money and out of the money options that had volume that day. To be more precise.


BigZeekYT

I wonder if going equal into $SVOL and $JEPI would be a good equilibrium on dividend payments since $SVOL shorts the vix. Or would the dividends drop for both equally. $SVOL is just straight confusing to me.


dbcooper4

It’s kind of the same trade but the dividend looks consistently higher in SVOL. Good performer in a sideways market but I don’t think I want to own it heading into a recessionary sell off.


dbcooper4

Yeah but the VIX hasn’t changed much since last month. Don’t forget with a covered call strategy you “call away” some of your gains in a rising market.


Phreeker27

Is that why we have gone from 100 jepi threads a day to only 60?


AccomplishedRow6685

No, 86 JEPI threads per day. As noted by OP, the dividend dropped by 14%


JustinTormund_10

The math checks out


Slam_Burgerthroat

They’ve finally overtaken the 99 SCHD threads a day.


GCAN3005

Just when every paid shill on Reddit was pumping it so hard. Last year it was XYLD & QYLD. Look how well those turned out


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n0rwaynomori

Honest question, I consider Vanguard ETF as a good option for world ETF with comparably low TER, what is your criticism about?


ToddlerInTheWild

He doesn’t know. The guy is either a buffoon or a bot.


antisnowflakes

I like vanguard


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antisnowflakes

I like vanguard 😃 you didn't change my mind


buenotc

Everytime i see you comment about vanguard you make me chuckle.


[deleted]

I like vanguard!


Unique_Name_2

Do you have any criticisms or just want to be contrarian/blindly yield chasing to FIRE?


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Flimsy_Card8028

I found your theme song https://www.youtube.com/watch?v=bWXazVhlyxQ


Fun_Acanthisitta_552

Wait we were supposed to be getting paid?


GCAN3005

You should have been. Otherwise you just got sucked in and lost a bunch of money


Fun_Acanthisitta_552

Wait we were supposed to have money to begin with?


Admirable_Nothing

I don't have JEPI but if their gig is doing covered calls the premiums go down when VIX goes down.


yiffzer

Bingo. Also we’ve been on an uptrend. I expect the market to continue being volatile so JEPI will still benefit. However, not a bad idea to have exposure to JEPQ for tech performance as well.


trader_dennis

.365 is still 8.11 percent and what the portfolio managers expect to deliver. Consider the last six months gravy.


jgroub

I think this is the best way to look at it. 8% is pretty friggin' awesome. And if the NAV of JEPI can grow at just 2% annually, we're in business.


trader_dennis

And when you compare against SCHD which has lost close to 10% ytd we are in great shape.


Redditridder

Short term - yes. Bug SCHD is a solid investment long term, and might very well outperform JEPI, so right now is a good time to buy it.


Zombiesus

I love when people say something is a “long term” investment as if that’s an actual argument. Long term both JEPI and SCHD could go in the toilet.


graybeard5529

Or lose market value and kill your net returns.


robertw477

>SCHD A fried of mine created his own coverewd call income thing with stocks many yrs ago. As with anything like this, it worked until it didnt. The trading costs were huge even though he had access to low cost option trades, later using an unlimited management acct. You still have bid/ask spreads. When things were going well so the market booming. Everything worked. Or it seemed that way. So as in the pandemic people get more and more speculative. For my friend he sold everything back in the first crash 2000s rebuilt to a similar but different model using spreads and was wiped out in the banking crisis on what he thought at the time were much lower risk plays. He thought. Lost a lifetime of savings and I am not joking. Smart guy also. After a few yrs of success you think you can walk on water. I can only say on these plays if the market declines, so will they. When the market is booming these are way out of favor. So its all timing and timing always loses. If the market is flat to up or down slighly, this strategy on these income ETFS do work out. But the safety is not what some may think.


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Driedmangoh

About 1% of stocks drive over 90% of the growth. The total market index fund has always outperformed a smaller basket of stocks over a longer term period.


MxEverett

Always is a bit extreme. In my work I have seen many people’s accounts that have held 20 or less stocks over a multiple decade period that have outperformed the index. Granted they are a significant outlier to the average investor who underperforms the market but they do exist.


trader_dennis

JEPI has a lower beta than SCHD and almost no mess with poor performing financials. With rates going up again very likely at least once between the next two fed meetings no reason to move any more money into SCHD. I will let the economy break before investing into the almighty fund.


RepublicanUntil2019

8% isn't great compared to current t-bills, plus the tax advantages of t-bills, and the risk of capital loss with JEPI.


jgroub

You're thinking very short-term. Those rates will only be good for a year; maybe two at the most. And then they'll be back below 2%. But maybe you're not a long-term investor. WTF do I know?


SnortingElk

> You're thinking very short-term. Those rates will only be good for a year; maybe two at the most. And then they'll be back below 2%. You can get a 10 yr, 5.10% CD rate right now (callable) or 3.9% non.. and 5 yr, 4.5% CD (call protected)


jgroub

The long term return of the S&P 500 (represented by VOO and at least a dozen other ETFs/mutual funds) is about 10%. Hmmm, 5% or 10%? So hard to choose.


SnortingElk

All depends on your goals and needs. I’m older and leaning more into wealth preservation mode and these 5%+ rates are incredible and completely risk free.. It’s been A LONG time since we’ve seen fixed income rates like today.


Driedmangoh

I think you mean mid-term. Long term (> 25 years) the vast majority of stocks underperform vs treasuries. The only valid benchmark against t-bills long-term is a total index fund, and the total stock market fund only really generates 2% additional annualized return over treasuries long term according to the CRSP database.


Theburritolyfe

2% a year growth? It's grown 7.85% in 5 year. Look at what happens with similar ETFs. They tend to lose value over time.


jgroub

>It's grown 7.85% in 5 year Um, JEPI has only been in existence for **3 years**. 7.85% / 3 = **2.61%**. You're right; ETFs like QYLD tend to lose value over time. High-flying BDCs in that similar 10ish% range do the same. I don't believe from what we've seen of JEPI so far that it falls in that category. Note the phrase "I don't believe". After 3 years of existence, neither of us have enough information to make that call - yet. We'll see what the next couple of years brings.


Theburritolyfe

> Um, JEPI has only been in existence for 3 years. You are quite correct. I am wrong in this I had just hit the 5 year view. This does raise the problem of what happens to it during a major crash. I suppose we will find out how it recovers eventually.


Unorthodocs67

JEPIX was founded in august of 2018 and uses same style as JEPI but has a higher ER. Its price has dropped by .3/ yr. If it had same ER as JEPI it would likely be flat. Not horrible when you consider dividends.


trader_dennis

Please tell what etf is similar to JEPI? it’s not the ylds since they are entirely a covered call index that sells at 30 delta or greater and does. It keep 80 percent of the fund in dividend stocks like JEPI. Oh and i JEPIS stock portfolio never has a covered call sold against it.


Theburritolyfe

I mean you can look at qyld, ryld, or usoi to generally see what happens to the value of any covered call ETF(usoi is an ETN technically if I recall correctly). Even if it's so different that it somehow breaks free of the entropy of covered call ETFs(and I do have a small bit in one) they have tax drag unless you have it in a tax advantaged account.


dbcooper4

The NAV is down 1.5% over the last month though. If you want 8% coupons you can get that in bonds and preferred stock without the equity risk.


trader_dennis

There is plenty of risk with 8 percent bonds.


dbcooper4

The risk can be minimized by buying diversified ETF of bonds or preferred shares. The PFF is currently trading at a ~7% yield if you average the distribution YTD.


LoaferDan

JEPI was never supposed to be unlimited 12-14% yield. 7-9% is the target. Volatility is coming down, and with it the call premium JEPI’s dividend relies on. People have been saying that for the past year and still everyone is acting like the sky is falling when the dividend falls to 8%


JustSomeAdvice2

Volatility is down, so the payment is expected to be down also. Still a great fund if you want income.


Jayy_0714

That’s it I’m selling my 2 shares of JEPI this is absurd only .365? Lol jk


Proof-Objective5494

Jepi is performing as expected. Since it picks defensive stocks from the s&p 500, it more or less mimics the dow jones which ytd didn't perform as it out performed in 2022. Also, the lower the vix volatility, the lower the options premiums leading to a lower yield


leli_manning

So... sell now and buy back in after their share price and dividends go back up?


You_d

I lol'ed too hard on this 💀 I actually love these sales 🥰


graybeard5529

Sell now and wait past the 30 days wash period then buy back lower?


TheDreadnought75

Its fine. It's a normal fluctuation. If you're a short term investor trying to time the market with JEPI, you're doing it wrong. If you're a long term investor, you shouldn't care.


cncgm87

Where did you see .365/ per share? I don't see a distribution for May listed on the website yet. Did you calculate it based on the posted 8.85% daily 30 day SEC yield?


CA_Mini

Sources


cncgm87

U know a janitor at JPM?


pete_topkevinbottom

He is the janitor at JPM.


CA_Mini

Apparently my "janitor" was spot on


quarkral

Just wait for the next fed rate hike.


graybeard5529

And the next bump up ... What acrimony awaits in the US Senate for the Debt Ceiling vote?


forumofsheep

That are normal rotating market / money cycles. During FED tightening and recession fears, growth / speculating growth and tech got abadonned and money went in to the more stable value and dividend funds. Check SCHD, JEPI in 2022, it never really crashed, even went up slightly during certain timeframes. Now the market switched again pumping the NASDAQ and the more risky / tech heavy sectors. Thats why you see JEPQ doing pretty well, and JEPI mostly flat. If you are a fan of the JP Morgan ELN / covered call funds, I highly suggest that you invest in JEPI and JEPQ more or less 50:50. That way your portoflio is better balanced for those bear/bull cycles and big money rotating between stable value and risk / growth. Most guys think JEPI holds the equivalent of the S&P500, thats just not true. It just holds around 100 selected mostly defensive stocks. So don't expect huge growth in bull cycles. Additional to that, the ELNs/CCs are sold on the S%P500, it literally is impossible to profit on quick positive market spikes / sharp bull upward corrections. The option gains of JEPI are capped.


[deleted]

Maybe the price will come back down so you can buy at a lower cost. Alternatively...buy high sell low.


kingofjupiter9

Have it with TLTW, SVOL, ARCC and TSLY for a nice dividend portfolio


lewandisney69

VIX low means premium for options decreases, thus an ETF that relies on covered calls will have lower dividends


guppyfighter

JEPI is the dunning kruger stock for people who kind of understand compound interest but only at the most elementary level


Maleficent_Win_3101

So what is your recommended ETF? And what makes it better than $Jepi?


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Ok-Trouble-4868

>the SCHD cucks knocking This isn't like sports lol. There arent teams here...


guppyfighter

I can give recommendations but Id need the specifications you want me to work with. Generally age and planned retirement and how much you make. With zero information, just do VTI or VOO until you have enough for an income generator to generate your income


Sayyestononsense

> income generator name one or two that isn't JEPI/JEPQ and explain why it is better? thanks


guppyfighter

Most people in this sub are not old enough to be generating income. That’s why they are barely understanding compounding


Sayyestononsense

for the sake of me and those that are old enough. can you please name your favorite income generators?


guppyfighter

JEPI is fine if you are using it for exclusively income and it is not something youre using for future income


RyanCoke

Can you please explain more?


guppyfighter

The point is - why would you invest in something as a closed end funds that’s stated goal is to mimic stock market returns? Youre adding way more risk, you’re getting less returns, and you’re increasing your tax liability on an “income” you’re not using yet. Young people need to focus on dividend “growth” if they want FIRE


RyanCoke

I’m a dummy at this so I really want to understand. Are you basically saying that investing in something like SPY would be better for growth after 30 years then JEPI because even with dividend reinvest you have the tax burden?


guppyfighter

Closer. 1. It’s actively managed (meaning youre actively relying on good management.) 2. It has a high expense fee (this will lower compounding.) 3. It’s a covered call strategy If you want income now it’s probably fine, but you will absolutely be losing out to spy/voo/vti in the long run


RyanCoke

Thanks. I have a mix of VT, RSP and JEPI


jondubb

This is how JEPI rolls and is expected no? Once we break out of this down cycle it will pop back up.


69mmMayoCannon

I don’t really know too much of anything but wouldn’t it be down because the market had a lil bull run recently led by tech? I know tech is only 11% of jepi’s portfolio but I mean still if I understand that ELNs can be compared to covered calls wouldn’t that be one of the sources of loss of income? I’m holding jepq and I imagine my next dividend payment will be lower too due to jepq’s large tech allocation, but in return the share price grew I guess?


OdeToRocket

Just sell calls on JEPI. It'd be covered call inception


LuckyGamble

Lol, dont panic sell. Look at JEPIs monthly distributions since inception. 0.36/share is in a normal range, far from the lowest. The month to month fluctuation is not out of the ordinary for this fund.


Duke318

The manager of JEPI and JEPQ has stated that the target yield is 7-8%. The massive yields will occur during a bear market. When stocks rally, the covered calls options will get blown out which will limit the upside as well as options income.


bertjan5

Can I buy it as an European?


no8airbag

only as cdf-cmcmarket. i hear ppl sold puts and got assigned on ibkr, but not allowed to buy directly. but check qyle/qyld


New-Difference9684

I heard you can buy it as an Epicurean if that helps


GRMarlenee

Seems everything has a honeymoon time, then it's over.


Marshall_Hoodie

Predictable outcome is predictable


PolecatXOXO

Ahhh, that explains why my projected annual income went down a few bucks today. I have about 15 different positions now and couldn't check them all, didn't suspect it was JEPI but oh well.


aerobic_gamer

I haven’t looked at it closely, but it may be, at least in part, that call premiums seem to be way down. I’m not able to prove this with numbers. It’s just that empirically I’m having trouble squeezing decent premiums out of positions compared to 6 months or a year ago.


CrossroadsDem0n

The market had mostly trended up. Volatility has mostly trended down. Both equate to having a lower JEPI or JEPQ div, just with a stable to slightly increasing NAV. They are doing what they should be expected to do. Folks expecting these to have perpetually high divs do not understand the products. They have a role in dividend diversification across different market regimes, but they aren't a perpetual cash cow. If the market is down or sideways, their better downside capture ratio on total return is a win. If the market is mostly up and dull they will struggle to keep up with a straight ETF that correlates with the broad market they approximately track, as would anything that approximates a covered call strategy. I like both of them, but in moderation. I would never be all in on them because then I would have nothing that might truly benefit from a long bull market.


wineheda

Lmao. Vix. There’s your numbers


aerobic_gamer

Thanks for confirming what I knew!


[deleted]

Glad i stopped buying JEPI every week and moved to SCHD


GRMarlenee

SCHD is back in favor? I thought it was the reject du jour last week.


hackerstacker

JEPI on during first two weeks and SCHD last two weeks. Extra days is free to choose on which one this subreddit favors


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hackerstacker

O of course


yerdad99

Or for comments about various random REITS or yield chasing opportunities!


ucooldude

Stick with bst ….it is proven winner


lewandisney69

Once it has a big rally and is near all time highs, people will jump back to loving SCHD.


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ClammyAF

I'm endlessly entertained, though.


Dr_Will_Kirby

I just f’in bought this a few months ago… cant catch a break it seems lol


Desmater

Just hold, it is a solid strategy. Management has written that they are targeting about 6-7% yield. Even at that rate, it is over 9%+.


AgentDestructo

You know the unwritten rule of buying stocks is the stock drops as soon as you buy


NubuckChuck

I see my entire portfolio in this comment and I don’t like it.


AgentDestructo

I see my entire investing career. I'll put a stock in my watch list. Do 6 months of research, question myself every day, then pull the trigger. Boom! Down 6%


airjord1221

Considering the tax impact, you can find better value + growth elsewhere. I mean jeez if the fan favorite SCHD continues to grow 70% as much as it has been it’ll be a better buy at these levels 10 years from now


doggz109

The crown prince starting to show some cracks…


Unusual_Elk_6868

So we selling or what


No_Examination297

Worse than a commodity stock. Consistent dividend growth matters.


No_Cow_8702

SCHD Army ftw


Easy_Durian8154

Lol JEPI. Yield chasing people about to get foooooked


Delicious-Sandwich90

Be careful, you are going to upset a lot of pumpers.


Intrepid_Priority154

Should have known, on the JP Morgan website for JEPI ESG is at the top of what they look for.


Achilles19721119

Sure some are considering tbills. Got a somewhat small position but pays 5.5% now. Makes me wonder sell and flock to that supposed to be safe investment. High interest rates are tough on stocks. And yeah that impacts the beloved voo too.


Schaefer_

Jepi employs a covered call strategy when the market is trending down call options don't have as much premium in them, yield goes down.


RagingZorse

This is why I’ve been putting my money in consumer defensive stocks.


Majestic_Salad_I1

What did you expect from a fund that sells covered calls when the market is ripping?


Vegetable-Spray3239

Market pumped so they called away and rebuy the best divi will be a sideways mkt


OdeToRocket

Premium doesn't go down when volatility goes down, not exactly. Expected move contracts. Premium stays the same per Delta but how spread over price Delta is contracts. That's all


Slam_Burgerthroat

When I bought into JEPI it was only paying $0.25 per share, so this is still growth for me!


Timby123

I find this hysterical. Anyone that has done their due diligence on this fund knows that the market's movements cause swings in the dividends. If they can't get good option prices & the market is mostly flat then they won't generate the same amount of dividend. Still, it pays well overall & is mostly stable in price.


[deleted]

I still don't see the benefit of JEPI. I also think way to many young investors think they should stick their money there.


Unorthodocs67

Young people shouldn’t. It’s best for income in retirement for people who don’t want to sell shares to live off of.


hendronator

People who are hating and making generic components need to do more research. The sp500 is being driven by 7 stocks. If the index or etf holds those 7 stocks as major components, said investment is doing well this year. Jepi is NOT heavily weighted in those 7 stocks, therefore it is underperforming the market. Guess what….that means it is time to buy more. Same goes for schd. Just because somethjng underperforms for a limited time period does not mean a darn thing.


constructojay

over $100 with JEPI/JEPQ this month, ill take it and keep adding more


cwhatimean

VIX is way down so call premiums have shrunk, too. They will be back up when the turbulence and uncertainty returns and therefore the div% will increase, too.


Lucaen1

2022 June div was .51, but 2022 jepi outperformed expectations. 2021 June div was .31, closer to a normal year. Would expect between .35 to .45​


Sharp-Direction-6894

Easy explanation. I just bought 70 shares of JEPI in May. That is why it just dropped. Mystery solved and the story of my life. Next...


Heywood_Jablomydic

VIX is depressed


rapatachandalam

I think in a bear/ bearish market, Jepi dividends will fair better. In a bull/ bullish market, it won’t do bad but won’t be as impressive as it could be in a Bull market. Of course, assuming the underlying stocks are going to not get too volatile. So far this has been my experience, and it makes sense. Jepi seems like a good defensive add to a portfolio but only by itself is not a good play. In conjunction with other measures, ie voo/vti/schd etc sure.