Dividend stocks have been too expensive, too volatile, and lagging in a market that has decided it is artificial intelligence or bust. Some high-yield stocks may even be at risk of price plunges due to reducing their dividend payouts. As a result, I haven’t been a fan of dividend stocks for years.
However, I now have a real case to make for rotating out of covered call ETFs (JEPI, DIVO, XYLD) and into a low-volatility, pure-dividend vehicle like the Global X SuperDividend U.S. ETF (DIV). The current market seems to finally have put DIV in the spotlight, not the doghouse.