The broader market could soon go through some pivotal changes in the near future as we turn the page to December, with investors confident about another rate cut this month.
Market looks overheated? Earn stable income with high-dividend ETFs?
Amplify CWP Enhanced Dividend Income ETF is rated a Strong Buy for conservative income investors seeking balanced growth and defensive income. DIVO's active, concentrated portfolio of large-cap dividend stocks and tactical covered call strategy deliver consistent income without eroding NAV. DIVO outperforms peers, like JEPI and XYLD, in drawdown mitigation and total returns, while capturing most of the upside in bull markets.
Amplify CWP Enhanced Dividend Income ETF offers a 4.5% yield, monthly income, and superior total returns versus peers like SCHD and JEPI. DIVO uses a tactical covered call strategy on high-quality, large-cap dividend growth stocks, providing income, inflation protection, and tax advantages. DIVO has outperformed similar ETFs over 1-, 3-, and 5-year periods, with a 5-star Morningstar rating and strong, consistent dividend growth.
At various stages of life, we can have different financial goals and this will mean owning different exchange traded funds (ETFs).
With markets rallying lately due to strong hopes of a Fed rate cut this week, the actual reaction can be muted when the news hits the market. ETFs like QYLD, DIVO, JEPI and XYLD may help balance income and risks.
DIVO is a misunderstood ETF, offering a tactical blend of growth and income, ideal for managing sequence of returns risk in retirement. Its active management—selecting quality stocks and writing selective covered calls—delivers higher risk-adjusted returns and more stable income than peers. DIVO's hybrid structure bridges the gap between growth and income, providing portfolio stability, inflation protection, and reduced drawdowns during market stress.
DIVO invests in high-quality, large-cap, dividend-paying stocks using covered calls, aiming for lower volatility and steady income. Top holdings like Meta, Apple, and Microsoft are leaders in AI and innovation, but the fund's yield and volatility edge over the S&P 500 is minimal. DIVO's total returns consistently underperform the S&P 500, and its expense ratio is significantly higher than passive alternatives like VOO or SPY.
SCHD is my overall favorite dividend growth ETF. However, DIVO offers several qualities that seek to improve on SCHD. I share why DIVO may make more sense than SCHD for many investors, as well as when it does not make sense.
The DIVO and SPHD ETFs recently raised their dividend payouts multiple times. Moreover, DIVO and SPHD enable diversification and can help to reduce share-price volatility.
DIVO offers balances steady yield, capital appreciation, and risk management—ideal for my income portfolio preferences. Active management and a focused portfolio allow DIVO to adapt sector exposure and holdings to current market conditions, supporting consistent performance. The fund's covered call strategy boosts yield without eroding NAV.
Most investors generate passive income from the stock market through dividend stocks and ETFs.