JEPI Dividend Stock Review
Investing in a JEPI Dividend ETF may be an excellent way to reap the benefits of the fund's dividend. However, you should consider some factors before you make your final investment decision. In this article, I'll discuss the JEPI dividend history, how the fund selects its stocks, and the top 10 JEPI holdings. In addition, I'll explain what makes a JEPI stock ETF such an attractive option.
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JEPI pros and cons
- Options are used in the fund's strategy which means that the managers won't always win the trades. The biggest potential for loss on an option play is if the fund loses an in the money option trade.
- The fund uses a drawdown defense, this means that short term this is a great option if you need monthly income based on JEPI's yield. It's my opinion that total markets will beat JEPI long term.
- Covered call funds like JEPI offer higher risk but higher yield in this case. I recommend that investors do some research and learn how covered calls work before investing into JEPI.
- There isn't very much historical data on how this ETF performs in good times and bad times economically. It's criticized for potentially not performing well in a bull market. But we will see.
- High yield due to the nature of the fund. It's great if you are creating a portfolio that needs higher yield dividends.
- The covered call strategy will help the yield stay higher and includes some downside protection on it's baseline.
- JEPI out performed SPY in the year 2022.
How often does JEPI pay dividends?
JEPI is a dividend that is paid out every month. JEPI has a dividend yield of 11.32% and distributed $6.25 per share in the year 2022. In most cases, the dividend is distributed within the first week of each month.
How much does JEPI pay in dividends?
9.29% yield as of this month. JEPI has an average Dividend Yield of 7.61% since inception.
|6.59% Inception Low||9.44% Inception Maximum|
|7.61% Average Since Inception||7.52% Median Since Inception|
Does JEPI have downside protection?
Yes, the managers place protective puts as part of it's covered call strategy. These puts actually decrease the upside potential but YTD JEPI is beating the S&P 500 by 7%. So even with the lower upside potential the security it performing admirably.
Is JEPI Leveraged?
JEPI is moderately leveraged. It's leverage ratio is around 1.25x.
Is JEPI Actively Managed?
yes, JEPI is an actively managed fund. It mainly generates income through selling options on large cap US stocks. JEPI invests in S&P 500 stocks that generally exhibit low-volatility behaviors, then they sell options on the same stocks to generate option income.
JEPI Dividend - History
If you're interested in determining the growth and variability of a stock's dividend payout, you've come to the right place. JEPI has historically outperformed the S&P 500 in the long term. In addition to historical dividends, we also offer a JEPI stock dividend history table.
|Ex Date||Div Payout||Payment Date|
JEPI pays a variable monthly distribution. Its dividend yield is 6.67% trailing and 9.08% forward. The fund's management selects its stocks using ESG criteria, valuation metrics, and low volatility. The fund seeks to track the S&P 500 index while providing investors with a higher dividend yield. It achieves this goal by writing call options on stocks.
JEPI ex Dividend Date
Generally the ex dividend date is the 1st of the month. It does vary slightly on occasion. It generally pays out the within the first 5 days depending on weekends and holidays.
What is JEPI Expense Ratio?
JEPI has an expense ratio of 0.35%.
Is JEPI Diversified?
There are roughly 95 holdings inside of JEPI. For a monthly paying dividend ETF this is well diversified.
JEPI Holdings - Top 10
|Symbol||Company Name||Portfolio Weight|
|UNH||UNITEDHEALTH GROUP INC||
|HSY||HERSHEY CO/THE COMMON||
|ODFL||OLD DOMINION FREIGHT||
|KO||COCA-COLA CO/THE COMMON||
|AJG||ARTHUR J GALLAGHER & CO||
|JKHY||JACK HENRY & ASSOCIATES||
|BMY||BRISTOL-MYERS SQUIBB CO||
|MSFT||MICROSOFT CORP COMMON||
JEPI Sector Weight
The JPMorgan Equity Premium Income ETF, also known as JEPI, is an investment fund that invests in low-volatility stocks and sells covered call options. JEPI was launched in mid-2020 and has since amassed over $3.5 billion in assets. The fund charges a modest expense ratio of 0.35%. Here's what it means for dividend investors: JEPI holds stocks with low volatility and pays a high monthly dividend.
The JEPI is a dividend fund that invests in equity securities. It allocates eighty percent of its assets to equity securities and twenty percent to ELNs, which are hybrids of S&P 500 Index with written call options. These securities collect option premiums and produce a recurring income stream. Investors who purchase JEPI shares receive monthly distributions. However, there is no downside protection from covered calls, so you should consider this risk before purchasing any securities.
About JEPI Stock ETF
If you've been interested in investing in the S&P 500 index, you may have heard of the JEPI stock ETF. The fund's goal is to provide current income, while retaining the opportunity for capital appreciation. The JEPI uses various valuation metrics and writes call options on stocks to generate high yields. The fund charges 0.35% in fees and charges. To find out more, read about the JEPI's dividend strategy.
This was really informative! Great article.