5 Monthly Dividend Stocks that Beat the QYLD

TL;DR

Five monthly dividend stocks with higher returns and strong dividend yields outperform the QYLD, a popular but underperforming fund.

Transcript

in fact that's why there is really only one type of investor that should be putting their money in the qyld right now a fraction of the investors out there that can confidently say they're going to hold the shares and not worry about that falling stock price hey bowtie nation joseph hoger and a video that will undeniably piss off a lot of people fi... Read More

Key Insights

• ✋ The QYLD has a high dividend yield but has underperformed due to a falling share price and missed opportunities for stock price growth.
• ✋ Five monthly dividend stocks with higher returns and strong dividend yields are presented as better alternatives to the QYLD.
• 😒 The QYLD uses a covered call strategy on the NASDAQ 100 index, which limits its potential for stock price growth.
• 🥹 Investors who can confidently hold shares without worrying about falling stock prices may still find value in the QYLD.
• 💐 Monthly dividend stocks can provide attractive cash flow, but investors should assess the sustainability of dividends and diversify their portfolios.
• ✋ Business development corporations (BDCs) like Main Street Capital, Gladstone Capital, and Horizon Technology Finance offer high yields and potential growth opportunities.
• ✋ In comparing stocks with high dividend yields to those with higher total returns, it is often more advantageous to sell shares on a higher-return stock than rely solely on a high dividend yield.

Questions & Answers

Q: Why has the QYLD fund underperformed despite its high dividend yield?

The QYLD has underperformed due to a falling share price and missed opportunities for stock price growth caused by its covered call strategy and inclusion of non-tech stocks.

Q: What types of investors should consider the QYLD?

The QYLD may be suitable for investors who are well into retirement, rely solely on dividend income, and can confidently hold the shares without worrying about falling stock prices.

Q: Are there any risks associated with monthly dividend stocks?

While monthly dividend stocks can offer higher returns, investors should consider the sustainability of the dividends and the overall performance of the companies. Diversification is also important to mitigate risks.

Q: What is the average holding period for stocks according to data from the New York Stock Exchange?

The average holding period for stocks is currently only 5.5 months, indicating a trend towards shorter-term investments rather than long-term holds.

Summary & Key Takeaways

• The QYLD is a popular fund that pays an enticing 11.8% dividend yield, but it has only returned 8% annually over the last five years due to a falling share price.

• Five monthly dividend stocks with an average return of 15.5% annually are shown as better alternatives to the QYLD.

• The QYLD uses a covered call strategy on the NASDAQ 100 index, but it underperforms due to missing out on stock price growth and the inclusion of non-tech stocks.