5 Monthly Dividend Stocks that Beat the QYLD

I'll also reveal five monthly dividend stocks that beat the QYLD for a higher return and great dividend. Now it’s not that the QYLD is a bad fund but it is losing your money compared to the monthly dividend stocks I’m going to show you. In fact, the QYLD returned just 8% a year over the last five years…yes even with that 12% dividend, it only returned 8% because the share price dropped so much and it’s hugely underperformed the stocks it holds . In this video, I’ll reveal five dividend stocks with an average return of 15.5% a year, almost double the QYLD, all with strong dividend yields and paying them out every single month. I’ll also explain why the QYLD strategy isn’t working, the hidden risks in the fund and the ONLY type of investor that should be investing in it!

There are a few things that are important when looking at the QYLD ETF to help you understand the strategy and where the risks are, and why the fund might underperform others.

First, the fund is selling calls against about 3% of its stocks each month, just enough to produce the cash needed to pay out that 12% annualized dividend yield. The cost of selling those calls every month is going to be a drag on the performance, though it’s fairly small. Also though, just using that covered call strategy, means if the stocks in the Nasdaq jump higher in one month…the fund is going to miss out on some of that because it’s sold another investor the right to buy those shares for cheaper. That’s why you saw the QYLD underperform the Nasdaq tech stocks by so much over the last five years.

Another weakness though is that because the QYLD is a fund of over 100 stocks, it loses the opportunity to run higher if any of those stocks does really well. The non-tech stocks like Constellation Energy and Ross Discount Stores tends to slow the growth and the returns versus the stocks we’ll look at.

You’re asking yourself, but if the plan is to hold the QYLD forever and just keep collecting that dividend…what does it matter if the share price falls? I’m not selling so I’ll never care.”

Nation, you know I love the buy-and-hold strategy but you’ve also got to ask yourself…how many stocks do you own right now that you’ve held for more than maybe a year or two? In fact, data from the New York Stock Exchange shows the average holding period for a stock is now just 5.5 months.

Even if you truly intend to hold the QYLD forever and resist the urge to sell, a lot of life happens in thirty or forty years. Expenses come up and even that 12% annual dividend isn’t going to be enough for most people to live on in retirement. Even on a $100,000 portfolio, that 12% dividend yield is only a thousand dollars a month. You’re going to need to sell the shares and when you do, it’s going to suck if you have to sell them for less than you paid.

My Investing Recommendations 📈

Joseph Hogue, CFA spent nearly a decade as an investment analyst for institutional firms and banks. He now helps people understand their financial lives through debt payoff strategies, investing and ways to save more money. He has appeared on Bloomberg and on sites like CNBC and Morningstar. He holds the Chartered Financial Analyst (CFA) designation and is a veteran of the Marine Corps.
#dividendstocks #dividendinvesting #dividends

[josephhogue]

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[stjepanhauser]

Buying a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. Hence what are the best stocks to buy now or put on a watchlist? I’ve been trying to grow my portfolio of $260K for sometime now, my major challenge is not knowing the best entry and exit strategies... I would greatly appreciate any suggestions.

[The_Garage_Project]

This one felt like click bait. lower yielding stocks then you tell us to do options. If I wanted to mess with options I would allready be doing options. Instead I buy a fund doing it for me. So if im going to option why not let the pros (QYLD) do it for me and I dont have the headache. This would be the sole reason to buy dividend stocks.. no headache and little work.

[dsanti]

I use QYLD income to buy other stocks in my portfolio. I have enough dividend income that I now can stop contributing my work cash flow and use the dividends from QYLD and other stocks to compound my portfolio. My strategy is to build your own money printing machine and then start investing in quaility dividend stocks like Apple and Microsoft

[NolanGouveia]

Love your content Joseph! I just did a short on 3 top dividends for March 2022! One of them has increased their dividend by 225% since 2013 and continues to increase!!

[gordoncaughman]

This was a good explanation of QYLD and BDC fundamentals. Well done. Thank you.

[dominikfrohlich]

Long MAIN, GAIN, GLAD, QYLD, RYLD, JEPI and many more BDCs and REITs. Know your goals and follow them. Buy on dips, don’t expect any upside from QYLD and don’t put all your eggs in one basket. Keep it going, happy investing all. World peace.

[leomelvinfernandez]

If the stock price goes down, its the perfect time to buy more, or just good for those still making monthly contributions to QYld, if you plan to leave it in for a long time. Lower price mean more shares per $$$,
> Buy the dip I guess ( or continue buying it )

[asianinvestor]

I bought main, psec March 2021 pandemic hit at the bottom price now still getting my monthly dividends..it's a good return. It's like you have a rental property giving you monthly rent 😀

[tobyharrell]

I’ve kept my QYLD and continued to buy for the last 2 years. I try not to sale my income funds. I also have some MAIN.
Thank you for sharing your knowledge and explaining this sometimes overwhelming income portfolio stuff.

[god-la-wins-verdad-]

thx for this wasn't sure which dividend stocks to buy besides qyld due to what you explained earlier...

[marilynmanstonks]

very useful. particularly I like to mix strategies, some QYLD (never selling), MAIN, HRZN, GAIN... 'unlikely selling'

[jimfife]

Thanks for the great stock advice Marine, Semper Fi

[hand-eye]

some of them most useful content on YouTube keep it up. Love hearing from a fellow finance enthusiast!

[jamesh.edwards]

Thank you! Great advice and thought process. I got some of each and they're northbound. Really great to reduce or dump qyld and that family of funds, to diversity for both income And growth! Thanks for sharing your knowledge and insights!!

[chseaston]

I currently own $20k of RYLD but will be upping it to $150k as well as buying $150k of QYLD. This will be used as my retirement income starting next year. Moving overseas where the cost of living is much cheaper. Still have my 401k untouched and growing and SS when I qualify.

[earlful]

I like what you're saying here, always learning. I do have a question regarding your 5 year comparison between QYLD and GAIN (12:35). What would happen in that time frame if you DRIP QYLD, would the ending portfolio still favor GAIN?

[jimmbear]

Nice video, thanks for all the videos about dividend stocks. Your channel is the best when it comes to dividend content. 👍🙂

[Ziegler]

I am only commenting to see if I will stay to my plan. I started Last May with QYLD and my plan is to hold it throughout my retirement. I DO NOT PLAN TO SELL THIS ETF. I have dollar cost averaged to lower my cost but I am still down. When the market goes up again and the NASDAQ 100 go up will we not see a increase in share price? I wouldnt do this at 40 but at 58 I am going to stick to my plan. This comment I will screen shot and look at in my retirement. I will let you know if I need a loan!!!

[cwaa]

Whether or not I'm officially correct, the main reason I like high dividends is that I'll take the payment and not watch the stock price that much. I waste too much time watching stock prices. I'm sure there are lots of people that tell me that's not correct or that it is foolish.