I added more GPIQ 0.00%↑ today as my first buy in a few weeks. There are several stocks that I’m monitoring like BABA 0.00%↑, GOOG 0.00%↑ and a few others that are not quite in my buy zone for outright purchases or selling put options. Therefore, I chose to put the cash into GPIQ 0.00%↑ which offers growth and income.
The income portion is around ~10% annually as of this writing which handily beats the 10-year and 30-year bond rates even after their epic rise recently. Overall, GPIQ 0.00%↑ is tracking the performance of the Nasdaq and doing it pretty well I might add.
Below, I compare QQQ 0.00%↑ and GPIQ 0.00%↑ on total return, meaning all dividends reinvested. GPIQ 0.00%↑ sits only slightly behind QQQ 0.00%↑ even though GPIQ 0.00%↑ returns 10% distributions and is an option overlay ETF!
If the total returns are similar, AND most importantly, the dividend growth rate is strong and consistent (GPIQ is sitting around 13% dividend growth now), GPIQ 0.00%↑ is the superior investment in my opinion. I will also add that net asset value (NAV) erosion has not been an issue for GPIQ 0.00%↑. They are actually growing NAV because of their clever 25/75% option overlay strategy (which is why the dividends grow).
Ultimately, high-quality individual stocks are going to give you the best bang for your buck in terms of growth, so I will never leave my individual equities. But the money that I make in individual stocks and options will definitely be invested in GPIQ 0.00%↑ at least in part.
The long-term play here is to create a virtuous cycle of investment. Strong yield on cost growth using GPIQ 0.00%↑ and reinvestment in the early stages and then use GPIQ 0.00%↑ distributions and option gains to fund individual stock equities in later stages.
Once I see a broader downturn in some of the equities that I’m tracking, I will switch back to investing in individual equities. But for now, the best course of action for me is to invest in a broad-based Nasdaq ETF that is beating bond rate income AND growing NAV by riding the AI tech rally.
As always, my content is not financial advice so please do your own due diligence when investing your own money.