It Pays HUGE Monthly Dividends (But My Equity Is Losing Value)

So many dividend stock investors love these monthly dividend investments (covered call ETFs). My personal experience with XYLD over the last year has been lackluster, and I want to share my results in today's video. #dividend #stock #investing Here's my first video about covered call ETFs: https://youtu.be/eAzJog8IMYw Here's my second video about covered call ETFs: https://youtu.be/pbot01ZS1_0 Timestamps: 0:00 Introduction 2:47 CHECK OUT MY PPC IAN PATREON (I share my complete dividend stock portfolio on the Corner Tier, with percentage allocation to each position) 4:02 SEGMENT 1: MY PERSONAL PERFORMANCE INVESTING IN XYLD COVERED CALL ETF 4:16 Basic Info: XYLD writes covered calls against the S&P 500. The covered calls are supposed to provide tremendous cash flow. Over very long periods of time, the underlying equity is supposed to hold value. 4:57 My average purchase price for today's analysis is $49.87. 6:47 I am down 11.1% on the XYLD equity! This is a huge fluctuation to the downside, for an investment I look at for intermediate-term cash. 7:27 So far, I have earned 6.56% in monthly ordinary income dividend distributions. 7:40 If this holds up, I'll close my first year with about 8.55% in ordinary income yield. 8:08 IMPORTANT: Roughly, I'm down about 2.51%, projecting out my first year of ownership. (And, it's even worse when taxes are factored in.) 9:44 In April, 2022 I added more money into XYLD at $49.25! This thing still held up at that time, more or less. 10:59 Conclusion: I could have done better in almost all other assets. I'm not sure XYLD is a good investment for me anymore. 11:56 IMPORTANT: What is XYLD? It's an intermediate-term cash alternative. It's an intermediate-term bond of sorts. And, the bond market has had the worst time in decades! (By that comparison, it's not so bad.) 13:05 If I need capital for my favorite dividend stocks, I'll probably sell XYLD for that opportunity. 13:59 I'm better off focusing on the basics (my core dividend stocks). 15:07 KEY POINT: During good times, if I get distracted from core dividend stocks, I know that it's time to just save cash. When I get distracted, it means the market is overvalued. 15:42 The theory is always different than practice. I just have to be careful. 16:50 SEGMENT 2: VOLATILE MARKETS CAN STRESS-TEST AN INCOME-FOCUSED PORTFOLIO 18:35 SEGMENT 3: INVESTOR PSYCHOLOGY - Investors can get carried away with riskier positions during strong, bull markets. 19:51 Bear markets can be a reminder to stay on-course. 20:30 SEGMENT 4: COMPARISON OF XYLD VS. OTHER INVESTMENT COMPARISONS 20:49 US Dollar 21:02 I Bonds 22:02 S&P 500: It's not so bad over the 1-year period 23:30 If current premiums hold up, go-forward dividend distributions are about 10.6%. 24:44 JNJ is up 9.4% over the last year, vastly outperforming everything in this market. This is the value of dividend stock investing. 25:51 SEGMENT 5: KEY TAKEAWAYS 27:52 DISCLOSURE AND DISCLAIMER DISCLOSURE: I am long XYLD, Johnson & Johnson (JNJ), PepsiCo (PEP), Starbucks (SBUX), I Bonds, Treasury Bonds, and Stablecoins. I own these stocks, bonds, and investments in my personal portfolio. DISCLAIMER: All information and data on my YouTube Channel, blog, email newsletters, white papers, Excel files, and other materials is solely for informational purposes. I make no representations as to the accuracy, completeness, suitability or validity of any information. I will not be liable for any errors, omissions, losses, injuries or damages arising from its display or use. All information is provided AS IS with no warranties, and confers no rights. I will not be responsible for the accuracy of material that is linked on this site. Because the information herein is based on my personal opinion and experience, it should not be considered professional financial investment advice or tax advice. The ideas and strategies that I provide should never be used without first assessing your own personal/financial situation, or without consulting a financial and/or tax professional. My thoughts and opinions may also change from time to time as I acquire more knowledge. These are, as discussed above, solely my thoughts and opinions. I reserve the right to delete any comments for any reason (abusive in nature, contain profanity, etc.). Your continued reading/use of my YouTube Channel, blog, email newsletters, whitepapers, Excel files, and other materials constitutes your agreement with and acceptance of this disclaimer. COPYRIGHT: All PPC Ian videos, Excel files, guides, and other content are (c) Copyright IJL Productions LLC. PPC Ian is a registered trademark (tm) of IJL Productions LLC.

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