"Indeed, why bother with anything else when shares of the JEPI yield just north of 8.3%? And with pretty much the biggest name in the banking scene backing it, the JEPI stands tall in the specialty income scene that's grown quite competitive over the year. The JEPI on its own entails a great deal of risk, especially for those who seek greater yield stability."
"Still, for those seeking the perfect mix of stability in dividend-paying stocks (like those featured in the SCHD) as well as an income boost from call option premiums, I find the SCHD-JEPI combo to offer a potent one-two punch. Should you buy SCHD and JEPI together? What would the balance look like? So, should investors buy them together? Or is it better to stick with one over the other? As always, the right answer will differ based on one's tolerance for risk, desired yield,"
JEPI delivers a high distribution near 8.3%, funded in part by call option premiums, while SCHD yields about 3.8% from dividend-paying stocks. JEPI offers significant income but carries greater risk and less yield stability than SCHD. SCHD provides baseline dividend stability and lower yield volatility through a portfolio of dividend-focused equities. Combining SCHD and JEPI can provide diversified passive income: SCHD for stable dividends and JEPI for an income boost. Optimal allocation depends on individual risk tolerance, income dependence, portfolio context, and potentially guidance from a financial adviser.
Read at 24/7 Wall St.
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