Here’s the problem with income investing, and I say this as someone who collects over $43,000 a year from it: the more a fund pays you, the less it grows. This is why I’ve continued to pile money into META, AMZN, MSFT, CGDV, VFLO, etc. No matter your age, growth is an important piece of the puzzle. I love the income I earn from my investments, but growth makes it easier to built wealth.
A fund like QQQI pays 14% and returned about 12% over the past year with everything reinvested. SCHD pays 3% and returned 38%. You can have the paycheck or you can have the growth, and almost every fund I’ve ever written up makes you pick one.
I deal with that by running layers. High yield ETFs pay me every week, dividend growers compound in the background, and the two together do the job. But people ask me all the time for ONE fund that does both.
So I wanted to share that today.
It pays out 8% of its value every year, it sells zero options to do it, and over the last ten years it returned 18% a year against 15.3% for the S&P 500. You got paid 8% AND you beat the index. If you were to put $10,000 into this position ten years ago, it would’ve outpaced SPY.
No covered calls capping the upside.
No borrowed money.
No return of capital dressed up as income.
It’s been paying shareholders since before World War II
The pullback we just lived through knocked the price down without touching the gains that fund the dividend, which is why I’m writing it up now.
Below is what the fund is, how the 8% actually gets set, why this year’s checks are already covered, and the performance record. Paid subscribers get what’s inside it, whether the discount is worth buying right now, how it stacks up against SCHD and QQQI, the two risks that matter, and the year-end payout that gets declared this month.