passion7272 @passion7272: "Let's talk about $JEPI ..."

Bangladesh

Edited

Let's talk about $JEPI (Jpmorgan Equity Premium Inco) (Jpmorgan Equity Premium Inco) and $JEPQ (Jpm Nasdaq Equity Premium) (Jpm Nasdaq Equity Premium) - Part 2 of 10 of these two dividend powerhouses In the first part of this series, I have talked about how these two funds earn money to pay such a high dividend. In this part, let's see how these funds behave during market crash or bull run. Performance during market crash: Take 2022 as an example, a challenging year for equities. The S&P 500 declined nearly 18%, and the Nasdaq Composite plunged over 30%. JEPI, with its conservative, value-oriented portfolio, experienced a modest decline of approximately 3.5% for the year. JEPQ was launched in May 2022, so it lacks a full-year performance record for that period. JEPI's resilience can be attributed to its covered call strategy, which provided consistent income through option premiums, cushioning the impact of the market downturn. While in 2021 JEPI paid a dividend of 6.9%, but during the market crash of 2022 it's paid 11.7% in dividend. Performance During Bull Markets In 2023, the market rebounded strongly, with the S&P 500 returning roughly 24%. JEPI achieved a total return of approximately 9.8% for the year. While JEPI's return was lower than the broader market, it's important to note that its strategy focuses on generating income rather than maximizing capital appreciation. The covered call approach can limit upside potential during strong bull markets, as the premiums collected from selling call options cap the gains from rising stock prices. Dividend Yield in Bull Markets: In 2023, JEPI paid a total dividend of $4.62 per share. With an average share price of approximately $54.17, this results in a dividend yield of about 8.5%. I am invested in both of these funds and planning to increase the investment slowly as the market is very volatile for the last few months, also with a fear of recession and trade war. Investing in these funds during market tensions can help to sleep well. If you like these kinds of contents please make sure to follow me, so you don't miss the future parts of this series. $SCHD (Schwab US Dividend Equity ETF) $QQQ (Invesco QQQ) $SEZL (Sezzle Inc) $PLTR (Palantir Technologies Inc.) $1810.HK (Xiaomi Corp)