Investors have a great interest in dividend stocks. This is because the U.S. stock market has many dividend stocks that provide stable high dividend income. Let’s check out the detailed information about popular stocks like JEPI and JEPQ, including dividends and stock prices.
- JEPI and JEPQ ETF Key Information
- JEPI and JEPQ ETFs Dividend Comparison
- Comparison of JEPI and JEPQ ETF Stock Price Trends
- Considerations for Investing in JEPI and JEPQ ETF
JEPI and JEPQ ETF Key Information
JEPi and JEPQ are ETFs created by the well-known financial company, JP Morgan. Especially, JEPi has recently been attracting a lot of attention as a high-yield U.S. stock that pays dividends monthly.
Below, you can check the key information such as investment strategies, dividend yield, and stock yield that you must know about these two ETFs.
| Category | JEPI | JEPQ | Remarks |
| Name | JPMorgan Equity Premium Income ETF | J.P. Morgan Nasdaq Equity Premium Income ETF | |
| Management Company | JPMorgan Asset Management | JPMorgan Asset Management | The management companies are the same. |
| Investment Strategy | Invests in selected stocks from the S&P 500, U.S. real estate, U.S. government bonds, and U.S. medium-term corporate bonds. | Focuses on investing in high-growth technology stocks in the Nasdaq market. | JEPI-Stability vs. JEPQ-growth strategy |
| Asset Size | 30 Billion Dollar | 8 Billion Dollar | There is a 4x difference. |
| Annual Cost | 0.35% | 0.35% | |
| Dividend Yield | 8.4% | 10.2% | It varies depending on the market timing and stock price. |
| Dividend Period | Monthly | Monthly | It has the same effect as rent from real estate. |
| Stock Yield (last 1 year) | -0.8% | +20% | @’24. Jan. 5th |
| Number of Holdings | 117 | 87 | |
| Top Holdings | Amazon, Microsoft, Progressive Corporation, Trane Technologies | Microsoft, Apple, Google, Amazon | |
| Top 10 Holdings Concentration | 28% | 55% | JEPQ has a high concentration in specific stocks. |
Notes on Dividend Yield
The dividend yields of these two ETFs are almost 10%, which seems quite high. There are some more things you need to know.
The dividend yield is calculated by dividing the dividend income by the stock price. If we take a closer look at the formula below,
- Annual Dividend Yield = Current Dividend * 12 / Current Stock Price
The conventional dividend is estimated on an annual basis, and it increases significantly when the stock price falls. In fact, there is a risk that the dividend may decrease in the next year. That is, even if the stock price rises, we cannot be sure whether this level of dividend yield will continue.
Difference in Stock Yield
However, there is a difference in the stock yields of the two ETFs. JEPi has had almost no profit recently, while JEPQ has generated a profit of more than 20%. The reason lies in the holdings and investment strategies.
While JEPi invests mainly in the more stable S&P, JEPQ invests in the Nasdaq market, which focuses on stocks with high growth potential. It seems that the recent sharp rise in technology stocks has been reflected heavily.
Next, We will check the dividend income, dividend date, and dividend frequency.
Comparison of JEPi and JEPQ ETF Dividends
The biggest reason to invest in JEPi and JEPQ would be their dividends. Let’s look at each of their dividend situations.
JEPi Dividend
- Dividend frequency: Monthly
- Dividend yield: 6~12% (varies depending on the stock price)
- Dividend payment date: Between the 4th and 7th of each month
JEPQ Dividend
- Dividend frequency: Monthly
- Dividend yield: 6~12% (varies depending on the stock price)
- Dividend payment date: Between the 4th and 7th of each month
The level and method of dividend payment are quite similar. It’s also crucial whether the dividend is consistently paid and increasing. Both ETFs have dividends that vary slightly depending on the situation, so it would be difficult to say that they are always increasing.
Also, while the current dividend yield is around 10%, it is expected to return to around 6% if the stock price rises again.
Comparison of JEPi and JEPQ ETF Stock Price Trends
Compared the returns of the two ETFs over the past 1 month, 6 months, and 1 year. Please take a look below.
Recent 1-Month JEPI and JEPQ ETF Stock Price Trends
Recent 6-Month JEPI and JEPQ ETF Stock Price Trends
Recent 12-Month JEPI and JEPQ ETF Stock Price Trends
Due to the recent rise in the Nasdaq market, which is centered around tech stocks, the stock yield of JEPQ is high.
Considerations for Investing in JEPI and JEPQ ETFs
While JEPi and JEPQ may be suitable for dividend income at present, there are a few considerations. Please see below for more details.
- The dividend yield can decrease and may be volatile.
- JEPIand JEPQ, which follow the S&P 500 and Nasdaq markets respectively, are not easily immune to the effects when market volatility increases.
- If your goal is stock yield, general indices like VOO, QQQ may be better.
- JEPI and JEPQ have a financial product structure that pays dividends. It may be difficult to gain profits from stock price increases in order to pay dividends on a monthly basis.
- The fact that JEPI has almost no stock yield despite the recent high profitability of the market is proof of this.
- Nevertheless, if you want to earn a dividend yield similar to real estate rent on a monthly basis, these may be ETFs worth considering for investment.
- While receiving real estate rent is good, considering issues such as finding tenants and maintaining the property, a monthly dividend ETF could be a more convenient choice.
Disclaimer
- This article is not written to solicit investments.
- The information provided may not be accurate due to differences in the reference period, so investors are advised to verify it themselves.
- The decision and responsibility for investments lie with the individual investor, and the author of this article does not bear any responsibility for the investment results of the readers.
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