Better Passive Income Vehicle: AT&T vs. JPMorgan Nasdaq Equity Premium Income ETF

From Nasdaq, Inc.: 2024-06-18 07:15:00

Investors looking for passive income have options like AT&T (NYSE: T) and JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ: JEPQ). AT&T offers a 6.3% dividend yield but faces competition and debt issues. JPMorgan’s ETF uses call options for income, offering an 8.8% distribution yield but limiting capital appreciation potential.

Though AT&T has a high dividend yield, its growth prospects and dividend sustainability should be considered. JPMorgan’s ETF combines stock exposure with call options for income and offers diversification benefits. The ETF may be a better buy due to its diversified portfolio, higher yield, and tech exposure.

Analyzing AT&T before investing, the Motley Fool doesn’t recommend it among the best 10 stocks. Their recommended stocks have historically outperformed, with Nvidia showing massive returns. Stock Advisor offers guidance on building a successful portfolio, with a track record of outperforming the S&P 500 since 2002.



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