These ETFs Have Become Very Popular with Income Investors

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Single stock ETFs have become very popular with income investors. It’s no surprise considering they check all of the boxes for investors: double-digit yields, monthly dividends, and yield from hot sectors that normally pay little to no dividends.

In today’s article we’re looking at funds that give you access to large-cap stocks like the Magnificent Seven and earn great dividend yields from the covered call strategies. One fund family, Kurv, just announced double-digit special distributions on several single-stock ETFs that will run through the rest of the year.

Kurv offers single-stock covered call ETFs on a handful of popular stocks. Here is the list of ETFs with current distribution yields.

  • Kurv Yield Premium Strategy Amazon (AMZN) ETF (AMZP), 12.65%
  • Kurv Yield Premium Strategy Apple (AAPL) ETF (AAPY), 12.43%
  • Kurv Yield Premium Strategy Google (GOOGL) ETF (GOOP) 13.26%
  • Kurv Yield Premium Strategy Microsoft (MSFT) ETF (MSFY), 13.52%
  • Kurv Yield Premium Strategy Netflix (NFLX) ETF (NFLP), 19.22%
  • Kurv Yield Premium Strategy Tesla (TSLA) ETF (TSLP), 24.50%

On August 15, Kurv issued a press release announcing increased distributions on select Kurv ETFs. The special distributions will continue each month for the remainder of 2024. Here is an excerpt from the press release:

These special distributions are a reflection of our investment strategy balancing our goals of price appreciation with compelling monthly income generation. These special payouts underscore our dedication to maximizing returns for our investors while guarding against NAV erosion.

“We are thrilled the increased distribution will benefit our investors who believe in our approach to generate sustainable and tax-aware income. We remain committed to delivering exceptional investment results without falling into short-term whims of the market,” said Howard Chan, founder and chief executive officer of Kurv Investment Management.

On August 20, a follow-up press release announced the distributions on four Kurv ETFs to be paid for the rest of the year.

The new dividend rates are 13% to 15% higher than the dividends paid in July.

If you want investment exposure to popular tech stocks and want to earn an attractive yield, the Kurv funds will give you that opportunity. Also, these funds have more affordable share prices than the tech stocks they hold. For example, NFLP trades for around $31.00, while NFLX is almost $700 per share.

— Tim Plaehn

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Source: Investors Alley