Covered call equity ETFs have above-average yields and benefit from rising stock prices and bull markets. There are lots of covered call ETFs in the market, with different characteristics and focusing on different markets. A quick rundown of four particularly strong ETFs in this niche follows. ETFs include two focusing on quality U.S. equities, international equities, and tech.
The Dividend Harvesting Portfolio reached all-time highs, now yielding 7.95% with $2,739.40 in forward annualized dividend income. I see 2026 as a bullish year, driven by anticipated rate cuts, GDP growth, and expanding margins from stabilized input costs. Recent capital was allocated to undervalued names like Verizon and PIMCO Dynamic Income Fund, both offering compelling yields and improving fundamentals.
The Amplify CWP Enhanced Dividend Income ETF delivers a compelling blend of high-quality S&P 500 stocks and tactical covered call income generation. DIVO outperformed both risk-free assets and peer ETFs (VYM, SCHD), producing a 6.87% yield and 15.99% total return over the past year. The portfolio's forward P/E is 21.98x 2027 earnings, with 25.25% expected EPS growth, making DIVO's holdings appear attractively valued versus the S&P 500.
The Amplify CWP Enhanced Dividend Income ETF offers a compelling mix of steady yield and capital appreciation, outperforming peers in recent months. DIVO's diversified, rotationally favored holdings and lower tech exposure have driven recent outperformance versus SPY and QDVO. The fund's covered call strategy supports a stable, growing distribution, with a current yield around 5.4% at prevailing prices.
DIVO and IDVO are two of my favorite equity income ETFs. Both have solid mid-single-digit yields, outstanding dividend growth track records, and strong performances. Lots of benefits, fewer downsides, well-rounded choices all around.
The Amplify CWP Enhanced Dividend Income ETF remains a top choice for long-term, buy-and-hold income investors seeking both yield and growth. DIVO's dynamic option-writing strategy enables participation in market rallies and resilience during volatility, supporting a 4.5% yield with monthly payouts. The fund's focused, high-quality large-cap portfolio and balanced sector allocation drive robust total returns and consistent dividend growth (6.57% CAGR over three years).
Many investors in 2025 need dependable passive income, especially those getting ready to retire, and one outstanding way to achieve this is to invest in exchange-traded funds (ETFs).
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).