These Income Strategies Can Help Protect Your Stock Investments From Inflation and Recession
by Philip Van Doorn, MarketWatch
Excerpts taken from article:
Portfolio Manager Kevin Simpson shares how DIVO can be a good match for long-term investors who wish to help limit volatility while still participating in the stock market and the opportunity for monthly dividends can be used as a possible source of income.
There is always uncertainty in the stock market, but we believe the deflationary cycle that helped feed tremendous gains over the past several decades has ended. Two related strategies can help mitigate downside risk while still capturing most of the upside potential of stocks.
The two strategies: 1. Seeking stocks of companies that have increased their regular dividend payouts rapidly. 2. Augmenting that dividend income through the use of covered call options.
Kevin Simpson of Capital Wealth Management in Naples, Fla., co-manages the $1.2 billion Amplify CWP Enhanced Dividend Income ETF DIVO. The exchange traded fund tends to hold about 25 stocks and is actively managed.
Learn more: Amplify CWP Enhanced Dividend Income ETF (DIVO)
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