In today’s economy, with persistently low interest rates and rising inflation, more investors are searching for better alternatives than regular savings. While receiving monthly dividends sounds attractive, the fear of stock market drops often holds people back. In this post, we’ll compare two popular monthly dividend ETFs: JEPI ETF and DIVO ETF. These two funds follow different investment strategies, each appealing to specific types of investors.
JEPI – High Yield & Stability: A Defensive Monthly Dividend ETF
JEPI (JPMorgan Equity Premium Income ETF) is well-known for offering an attractive 7% to 10% annual dividend yield. It provides stable monthly dividends by investing in high-quality large-cap stocks and generating additional income through covered call options.
Its top holdings include blue-chip companies like AbbVie, Procter & Gamble, and Visa. Even during the COVID-19 market turmoil, JEPI maintained relative stability. This fund is ideal for investors looking for reliable monthly income — particularly retirees, income-focused portfolios, or long-term retirement accounts.
- ✅ Consistent monthly payouts
- ✅ Low volatility
- ❗ Limited upside during strong bull markets
DIVO – Combining Dividend Growth and Capital Appreciation
DIVO (Amplify CWP Enhanced Dividend Income ETF) offers a slightly different approach. While its dividend yield is slightly lower at 4.5% to 5%, it emphasizes long-term capital growth alongside steady dividend income. DIVO uses covered calls on a smaller portion of its portfolio while focusing mostly on dividend growth companies with solid fundamentals.
Its major holdings include companies like Microsoft, Home Depot, and UnitedHealth Group — businesses known for consistently increasing their dividends. For investors seeking a balance between growth and income, DIVO can be a strong addition to a diversified portfolio.
- ✅ Higher exposure to growth stocks
- ✅ Balanced income and growth potential
- ❗ Lower monthly dividend than JEPI
JEPI vs DIVO – Which ETF Fits Your Investment Strategy?
While both JEPI and DIVO offer attractive monthly dividend income, they serve different financial goals:
- JEPI: Best for investors who need steady, predictable income — such as retirees or those relying on monthly cash flow.
- DIVO: Ideal for long-term investors seeking both dividend growth and capital appreciation.
- 💡 Not sure? A 50:50 allocation can provide both stability and growth opportunities.
Both ETFs are easily accessible via major brokerage platforms. Keep in mind that U.S.-listed ETFs are subject to a 15% withholding tax for non-U.S. investors. If you're investing through tax-advantaged retirement accounts, you may benefit from potential tax advantages depending on your country's tax treaty with the U.S.
Conclusion – Build Reliable Cash Flow with Monthly Dividend ETFs
Both JEPI and DIVO go beyond simple dividend payouts. They offer well-structured strategies designed to deliver income, protect against downside risk, and potentially grow wealth over time. Choosing the right ETF depends on your personal goals — whether you prioritize steady income or a mix of growth and dividends.
We hope this comparison helps you make informed investment decisions. Take a closer look at JEPI and DIVO today!
