Cash Machine

Focus: OPTIONS

Bryan Perry Image Bryan Perry Editor, Cash Machine, Premium Income, Quick Income Trader, Dividend Investing Weekly

I want to have as much exposure to the technology sector as possible in a market that wants to reward tech stocks at every possible moment. Tech is clearly the go-to favorite sector of most fund managers where consistent alpha can be garnered that produces the broadest bang for the buck year in and year out. That assumption pretty much goes unchallenged. 

Covered-call fund Nuveen NASDAQ 100 Dynamic Overwrite Fund (QQQX) operates with a managed dividend policy and currently pays $0.35 per share per quarter, which translates to a 6.67% current yield. 

QQQX is composed of selective individual stocks. It doesn’t buy all 100 stocks that make up the Nasdaq 100 and thereby avoids many of the problem stocks that can weigh down the index. 

While the Nasdaq is ahead by 7% year to date, shares of QQQX are up 14%, thanks to the call premium being collected and some adroit stock picking by the manager. Buy the Nuveen NASDAQ 100 Dynamic Overwrite Fund under $21.50. 

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