The Nuveen S&P 500 Dynamic Overwrite Fund (SPXX) offers a 9.2% dividend, significantly higher than the 1% yield of the State Street SPDR S&P 500 ETF Trust (SPY). SPXX trades at an 11.4% discount to its net asset value (NAV), making it an appealing investment option. Over the last five years, its dividend has increased by 38%.
Similarly, the BlackRock Enhanced Equity Dividend Trust (BDJ) yields 8.1% and has seen its payout grow by 32% over the past decade. Approximately 80% of its portfolio is invested in dividend-paying stocks, and it utilizes a covered-call strategy on about 49% of its holdings. BDJ also trades at an 8.2% discount, well below its five-year average of 5.6%.
Investing in both SPXX and BDJ offers a combined average dividend yield of 8.7%, with BDJ providing monthly payouts, making them attractive options for income-seeking investors during periods of market volatility.
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