JEPI Is Great For Monthly Income, Buy Little Known KBWD Actually Pays More

23 hours ago 2

Michael Williams

Wed, December 10, 2025 astatine 10:07 AM CST 4 min read

24/7 Wall St.

KBWD concentrates heavy successful owe REITs and BDCs that usage important leverage and look precocious involvement complaint sensitivity.
Top holdings AGNC and ARMOUR output 13.70% and 18% respectively but run with important leverage risk.
JEPQ offers monthly income done Nasdaq-100 covered calls alternatively of KBWD’s concentrated fiscal assemblage approach.
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For investors seeking monthly income, JPMorgan Equity Premium Income ETF (NYSEARCA:JEPI) has go a household sanction with its important yield. But Invesco KBW High Dividend Yield Financial ETF (NASDAQ:KBWD) offers an adjacent higher output by focusing exclusively connected fiscal assemblage dividend payers. However, investors should cautiously analyse the fund's concentrated holdings and disbursal operation earlier committing capital.

KBWD generates income done dividend distributions from its underlying holdings, not done options strategies similar JEPI. The money maintains utmost attraction successful fiscal assemblage equities, chiefly owe REITs and concern improvement companies. This assemblage absorption creates some accidental and hazard for income-seeking investors.

KBWD's holdings exemplify the yield-versus-risk tradeoff. ARMOUR Residential REIT (NYSE:ARR) precocious declared a $0.24 monthly dividend ($0.72 quarterly) with publication worth of $19.02 per share. The institution reported $194.5 cardinal successful gross and $159.3 cardinal successful nett income for Q3 2025, supporting its $18.2 cardinal residential MBS portfolio.

AGNC Investment Corp (NASDAQ:AGNC) declared a $0.36 per stock quarterly dividend successful Q3 2025, yielding 13.70% annually. The institution operates a $90.8 cardinal bureau MBS portfolio with $903 cardinal successful gross and $764 cardinal successful nett income for Q3. Book worth reached $8.83 per share, up 6.0% to $8.28 successful the quarter. However, 1.2% of the portfolio remains connected non-accrual status.

Annaly Capital Management (NYSE:NLY) paid $0.70 per stock successful Q3 2025, generating an 8.1% economical instrumentality for the 4th and 11.5% year-to-date. The institution manages a $97.8 cardinal portfolio (64% Agency MBS, positive $6.9 cardinal successful Residential Credit and $3.5 cardinal successful MSR), reporting $1.79 cardinal successful gross and $843 cardinal successful nett income for Q3. The institution operates with 7.1x GAAP leverage and 5.7x economical leverage.

These owe REITs run with important leverage, evidenced by their concern models of borrowing short-term to put successful mortgage-backed securities. This makes them highly delicate to involvement complaint movements and output curve dynamics.