Thx. Curious whether you are doing so just for the dividend or are you hoping for (or expecting) capital appreciation as well.
I only ask because I bought my first tranche of JEPI in December of 2021 and have added shares a number of times since then. But the price of the stock is down 12% from my first tranche and although I have averaged down since and reinvested all dividends, the overall performance of the stock has been unimpressive. Yes, the dividend is very nice and is definitely a part of our monthly cash flow computation (although we aren’t taking the income). So I can’t argue with that. But when I look at what some of my shipping positions have done in the same timeframe, up 30-70% with dividends from 3%-8%, JEPI has tied up a lot of capital that would have made a ton of money if invested elsewhere.
I’m not whining. But I’m starting to come to the conclusion that unless one actually needs the dividend income to pay the bills, so to speak, that the opportunity for capital appreciation is very low. JEPI is only up about 6% off the October 2023 low.
So again, it’s just a question of curiosity whether you view JEPQ as a capital appreciation and dividend play. Or just a dividend play.
Greg could you please explain in the next video how the dividends are paid out and how much income they generate each month.
For example $1,000 investment in JEPQ or JEPI.
Thanks
Joe
Thx. Curious whether you are doing so just for the dividend or are you hoping for (or expecting) capital appreciation as well.
I only ask because I bought my first tranche of JEPI in December of 2021 and have added shares a number of times since then. But the price of the stock is down 12% from my first tranche and although I have averaged down since and reinvested all dividends, the overall performance of the stock has been unimpressive. Yes, the dividend is very nice and is definitely a part of our monthly cash flow computation (although we aren’t taking the income). So I can’t argue with that. But when I look at what some of my shipping positions have done in the same timeframe, up 30-70% with dividends from 3%-8%, JEPI has tied up a lot of capital that would have made a ton of money if invested elsewhere.
I’m not whining. But I’m starting to come to the conclusion that unless one actually needs the dividend income to pay the bills, so to speak, that the opportunity for capital appreciation is very low. JEPI is only up about 6% off the October 2023 low.
So again, it’s just a question of curiosity whether you view JEPQ as a capital appreciation and dividend play. Or just a dividend play.
Thx.