{"id":17239,"date":"2025-08-04T19:24:25","date_gmt":"2025-08-04T23:24:25","guid":{"rendered":"https:\/\/sharewatch.com\/wp\/2025\/08\/04\/these-3-funds-squeeze-apple-and-microsoft-for-dividends-up-to-11\/"},"modified":"2025-08-04T19:24:25","modified_gmt":"2025-08-04T23:24:25","slug":"these-3-funds-squeeze-apple-and-microsoft-for-dividends-up-to-11","status":"publish","type":"post","link":"https:\/\/sharewatch.com\/wp\/2025\/08\/04\/these-3-funds-squeeze-apple-and-microsoft-for-dividends-up-to-11\/","title":{"rendered":"These 3 Funds Squeeze Apple and Microsoft for Dividends up to 11%"},"content":{"rendered":"
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The Nasdaq has been rallying nonstop since April. Let\u2019s discuss three payouts up to 11.2% that play the rally.<\/p>\n

The catalyst is the \u201crise of the machines\u201d with companies replacing expensive humans with cheaper robots and AI tools. Hiring numbers are down and (paradoxically to some) the Nasdaq continues to levitate higher.<\/p>\n

This summer heater in tech stocks is no surprise to us contrarians. The Naz tech giants are enjoying expanding profit margins! Amazon (AMZN)<\/strong> CEO Andy Jassy recently admitted the company\u2019s workforce will shrink, replaced by AI. This is bad for those who work at Amazon, but great for those who own AMZN.<\/p>\n

Microsoft (MSFT)<\/strong> also announced big layoffs in recent months, especially in sales and support roles easily handled by AI-driven tools. And my friends at Alphabet (GOOG)<\/strong> are looking over their shoulders wondering how much longer their services will be needed.<\/p>\n

This is a dicey time to be a rank-and-file tech bro\u2014but an exciting time to be a tech savvy dividend investor. Here are three \u201cone-click\u201d (or one-tap) dividend plays on this megatrend!<\/p>\n

Global X Nasdaq 100 Covered Call ETF (QYLD)<\/strong>
Dividend Yield:<\/strong> 11.2%<\/p>\n

Alphabet (GOOG)<\/strong> will never pay 11.2%. But we can buy GOOG and the rest of Big Tech for 11.2% payouts via a fund like Global X Nasdaq 100 Covered Call ETF (QYLD)<\/strong>, which sells (\u201cwrites\u201d) covered call funds on the Naz index itself to generate additional income.<\/p>\n

QYLD buys the stocks in the Nasdaq-100 and simultaneously writes covered calls on the index itself to generate income\u2014which it pays out monthly.<\/p>\n

It\u2019s not perfect exposure to technology. The Nasdaq-100 is made up of the 100 largest nonfinancial companies listed on the Nasdaq exchange, and in fact, it includes stocks from 10 different sectors. However, it\u2019s still tech-heavy, at 60% of the index\u2019s weight, and includes trillion-dollar tech firms like Apple (AAPL)<\/strong> and Microsoft (MSFT)<\/strong>, so it\u2019s generally treated as a proxy for the sector.<\/p>\n

But that\u2019s a marginal consideration. The real tradeoff to weigh is tactical. By selling covered calls against the Nasdaq, we\u2019re sacrificing potential upside in return for a.) much more stability and b.) the very high income from the options premiums it collects.<\/p>\n

QYLD will rarely outperform the \u201cQQQs\u201d to the upside. But it also has less downside exposure, thanks to the constant income it generates by selling the call options.<\/p>\n

QYLD: Wilder Rips, But Deeper Dips<\/strong><\/p>\n

JPMorgan Nasdaq Equity Premium Income (JEPQ)<\/strong>
Dividend Yield:<\/strong> 10.8%<\/p>\n

The JPMorgan Nasdaq Equity Premium Income (JEPQ)<\/strong> uses a similar strategy, owning roughly 100 or so Nasdaq stocks while selling calls against the Nasdaq-100. It also doles out its massive dividend in monthly distributions.<\/p>\n

But it\u2019s a little more flexible because of a big difference between it and QYLD: management. Whereas QYLD tracks an index and typically has only one options position at any given moment, JEPQ is led by 38-year veteran Hamilton Reiner and a team of four co-managers who can sell multiple contracts.<\/p>\n

I\u2019ve also pointed out in the past that while both funds hold pretty much the same stocks, JEPQ is more heavily weighted in mega-cap names than QYLD. But that\u2019s not by definition. Indeed, today, JEPQ has a smaller percentage of assets invested in each of its top 10 holdings than QYLD.<\/p>\n

These might not seem like meaningful differences, but over time we see that JPMorgan\u2019s \u201chomemade\u201d strategy beat QYLD\u2019s straightforward approach.<\/p>\n

JEPQ Has More Than Doubled Up QYLD Since Inception<\/strong><\/p>\n

Active management can make a world of difference\u2014so much so that I typically prefer closed-end funds (CEFs) over comparable ETFs. Let\u2019s walk over to the CEF side of the border to review our final call writer.<\/p>\n

Columbia Seligman Premium Technology Growth Fund (STK)<\/strong>
Distribution Rate:<\/strong> 6.0%<\/p>\n

Columbia Seligman Premium Technology Growth Fund (STK)<\/strong> is a CEF, while QYLD and JEPQ are ETFs. But the differences go far beyond fund type.<\/p>\n

Paul Wick, who has nearly four decades of experience, and a team of five other managers run a slimmer portfolio of about 55 holdings. The portfolio is also a purer\u2014though not pure\u2014play on technology, with about 70% of assets dedicated to the sector. STK also is interested in \u201cgrowth at a reasonable price\u201d (GARP); a relatively more value-priced portfolio shows it, with price-to-earnings, sales, book, and cash flow all lower than the other ETFs.<\/p>\n

And whereas QYLD tries to own Nasdaq-100 stocks (and while JEPQ has a broader mandate but looks index-esque in its larger holdings), STK is much more willing to take some shots\u2014stocks such as Lam Research (LRCX)<\/strong> and industrial Bloom Energy (BE)<\/strong> punch well above their weight.<\/p>\n

Columbia Seligman\u2019s CEF writes covered calls, too\u2014typically on the Nasdaq-100, but again, it has more flexibility. For instance, right now, management is selling Apple calls, too.<\/p>\n

The strategy works. In fact, it works mighty well.<\/p>\n

In Fact, STK Often Outperforms the QQQ!<\/strong><\/p>\n

STK still has its drawbacks. Unlike other covered-call funds, Columbia Seligman\u2019s fund is actually more volatile than the Nasdaq, not less. Moreover, while the ETFs pay monthly, this CEF is only paying us on a quarterly schedule\u2014and at current prices (which admittedly represent a slight discount to net asset value), it\u2019s paying us just half as much as JEPQ and QYLD.<\/p>\n

\u2014 Brett Owens<\/p>\n

Sponsored Link:<\/strong> If you prefer monthly dividends, well, I don\u2019t blame you. I like getting paid more often too!<\/p>\n

In addition to the ideas we discussed here, there are plenty of payers beyond \u201cTech Bro Land\u201d yielding 8%+ that are attractive buys today\u2014click here for my favorites<\/strong>.<\/p>\n

Source: Contrarian Outlook<\/p>\n

<\/div>\n<\/p><\/div>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

The Nasdaq has been rallying nonstop since April. Let\u2019s discuss three payouts up to 11.2% that play the rally. The catalyst is the \u201crise of the machines\u201d with companies replacing expensive humans with cheaper robots and AI tools. Hiring numbers are down and (paradoxically to some) the Nasdaq continues to levitate higher. This summer heater […]<\/p>\n","protected":false},"author":1,"featured_media":17240,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ocean_post_layout":"","ocean_both_sidebars_style":"","ocean_both_sidebars_content_width":0,"ocean_both_sidebars_sidebars_width":0,"ocean_sidebar":"","ocean_second_sidebar":"","ocean_disable_margins":"enable","ocean_add_body_class":"","ocean_shortcode_before_top_bar":"","ocean_shortcode_after_top_bar":"","ocean_shortcode_before_header":"","ocean_shortcode_after_header":"","ocean_has_shortcode":"","ocean_shortcode_after_title":"","ocean_shortcode_before_footer_widgets":"","ocean_shortcode_after_footer_widgets":"","ocean_shortcode_before_footer_bottom":"","ocean_shortcode_after_footer_bottom":"","ocean_display_top_bar":"default","ocean_display_header":"default","ocean_header_style":"","ocean_center_header_left_menu":"","ocean_custom_header_template":"","ocean_custom_logo":0,"ocean_custom_retina_logo":0,"ocean_custom_logo_max_width":0,"ocean_custom_logo_tablet_max_width":0,"ocean_custom_logo_mobile_max_width":0,"ocean_custom_logo_max_height":0,"ocean_custom_logo_tablet_max_height":0,"ocean_custom_logo_mobile_max_height":0,"ocean_header_custom_menu":"","ocean_menu_typo_font_family":"","ocean_menu_typo_font_subset":"","ocean_menu_typo_font_size":0,"ocean_menu_typo_font_size_tablet":0,"ocean_menu_typo_font_size_mobile":0,"ocean_menu_typo_font_size_unit":"px","ocean_menu_typo_font_weight":"","ocean_menu_typo_font_weight_tablet":"","ocean_menu_typo_font_weight_mobile":"","ocean_menu_typo_transform":"","ocean_menu_typo_transform_tablet":"","ocean_menu_typo_transform_mobile":"","ocean_menu_typo_line_height":0,"ocean_menu_typo_line_height_tablet":0,"ocean_menu_typo_line_height_mobile":0,"ocean_menu_typo_line_height_unit":"","ocean_menu_typo_spacing":0,"ocean_menu_typo_spacing_tablet":0,"ocean_menu_typo_spacing_mobile":0,"ocean_menu_typo_spacing_unit":"","ocean_menu_link_color":"","ocean_menu_link_color_hover":"","ocean_menu_link_color_active":"","ocean_menu_link_background":"","ocean_menu_link_hover_background":"","ocean_menu_link_active_background":"","ocean_menu_social_links_bg":"","ocean_menu_social_hover_links_bg":"","ocean_menu_social_links_color":"","ocean_menu_social_hover_links_color":"","ocean_disable_title":"default","ocean_disable_heading":"default","ocean_post_title":"","ocean_post_subheading":"","ocean_post_title_style":"","ocean_post_title_background_color":"","ocean_post_title_background":0,"ocean_post_title_bg_image_position":"","ocean_post_title_bg_image_attachment":"","ocean_post_title_bg_image_repeat":"","ocean_post_title_bg_image_size":"","ocean_post_title_height":0,"ocean_post_title_bg_overlay":0.5,"ocean_post_title_bg_overlay_color":"","ocean_disable_breadcrumbs":"default","ocean_breadcrumbs_color":"","ocean_breadcrumbs_separator_color":"","ocean_breadcrumbs_links_color":"","ocean_breadcrumbs_links_hover_color":"","ocean_display_footer_widgets":"default","ocean_display_footer_bottom":"default","ocean_custom_footer_template":"","ocean_post_oembed":"","ocean_post_self_hosted_media":"","ocean_post_video_embed":"","ocean_link_format":"","ocean_link_format_target":"self","ocean_quote_format":"","ocean_quote_format_link":"post","ocean_gallery_link_images":"on","ocean_gallery_id":[],"footnotes":""},"categories":[29],"tags":[],"class_list":["post-17239","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-dividends","entry","has-media"],"_links":{"self":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/posts\/17239","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/comments?post=17239"}],"version-history":[{"count":0,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/posts\/17239\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/media\/17240"}],"wp:attachment":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/media?parent=17239"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/categories?post=17239"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/tags?post=17239"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}