https://money.usnews.com/investing/funds/slideshows/7-etfs-to-buy-that-pay-7-percent-or-more?src=usn_invested_nlFeb. 14, 2019
Some dividend investors look for world-class companies that withstand the test of time and provide reliable income potential thanks to quality products or massive scale. But others are happy to take on additional risk and volatility with the goal of supercharging their portfolio's yield – even if the principal value may suffer declines.
Those in this latter camp scoff at sleepy dividend payers like Johnson & Johnson (ticker: JNJ), which yields 2.7 percent. There's stability, but not a lot of income potential. Instead, these investors seek double or triple that yield. If this sounds like you, then consider these seven exchange-traded funds that each yield more than 7 percent annually.
1. YieldShares High Income ETF (YYY). This fund seeks to provide high yield via a portfolio of 30 closed-end funds. For those unfamiliar with CEFs, they operate much like a mutual fund in that you buy a stake in a larger pool of investments. But the key difference is CEFs have a fixed number of shares outstanding, and are sold via IPO like a stock and then trade on exchanges.
Think of YYY as a fund of funds, with component investments that hold a variety of high-yield investments. This approach offers a lot of diversification, and easy access to some of the highest-yielding CEFs on the market, including the DoubleLine Income Solutions Fund (DSL).
2. Global X Nasdaq 100 Covered Call ETF (QYLD). One way to supercharge your portfolio’s income is to use covered calls. This involves selling options on investments you own, granting you a guaranteed premium and only executing a sale of those assets if the value rises above a set price. It's a win-win – get paid by selling options, then lock in a guaranteed gain if stocks rise or walk away with the premium if they don't.
Your upside is capped in such a trade, and the strategy can be complex. However, the QYLD removes the guesswork by regularly selling covered calls on the Nasdaq 100 index to generate income. The result is a tremendous yield. – Jeff Reeves
