- The Nuveen Nasdaq 100 Dynamic Overwrite Fund (QQQX) attempts to combine the best of three worlds for income investing - high dividend, low volatility, and capital appreciation.
- With a 6.6% dividend yield, it is indeed appealing to investors seeking current income.
- However, you need to be aware of the uncertainties ahead, particularly surges in volatility and interest rates.
- The recent volatility spike and expected volatility ahead can help it generate more income but pressure its price appreciation.
- At the same time, the expected interest rate raises can diminish its real return and increase investment risks.
For further details see:
QQQX: Mixed Signals Ahead For Income Investors