Don't Fall Into the Dividend Trap. How Investors Misunderstand Covered Call ETFs

We explore the free dividend fallacy and how it applies to option income strategies. We break down the return drivers of covered call ETFs and examine the long-term performance record and volatility. Finally, we explain why it's better to own a single stock than a single-stock covered call ETF, such as MSTY, NVDY, or TSLY, offered by YieldMax.Show NotesThe Dividend Disconnect - Samuel M. Hartzmark and David H. SolomonSam Hartzmark on Dividends - Meb Faber ResearchThe New American Hustle: Dividends Over Day Jobs - Denitsa Tsekova and Vildana Hajric - BloombergCovered Calls Uncovered - Roni Israelov and Lars N. Nielsen - Financial Analysts JournalVolatility Risk Premiums Embedded in Individual Equity Options: Some New Insights - Nikunj Kapadia and Gurdip singh BakshiSponsorsTake the Money for the Rest of Us book quiz to see which investing book is best for you.Delete Me – Use code David20 to get 20% offInvestment MentionedInvesco S&P 500 BuyWrite ETF (PBP)JPMorgan Equity Premium Income ETF (JEPI)WisdomTree Equity Premium Income Fund (WTPI)YieldMax TSLA Option Income Strategy ETF (TSLY)Tesla (TSLA)YieldMax NVDA Option Income Strategy ETF (NVDY)NVIDIA (NVDA )YieldMax MSTR Option Income Strategy ETF (MSTY)Strategy (MSTR)Related Episodes471: Unlocking Income—A Comprehensive Guide to Investing in Covered Call ETFs466: Does Dividend Investing Still Work?See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Show: Money For the Rest of Us

Hosts: J. David Stein