Amplify CWP ETF Offers 6.49% Yield and 12.13% Five-Year Dividend CAGR
Amplify CWP Enhanced Dividend Income ETF (DIVO) yields 6.49% with $2.90 annual dividends per share and a 12.13% five-year dividend CAGR. The fund combines income generation through dividend-paying stocks with a covered-call overlay aimed at boosting distributions while managing downside risk.
1. Fund Overview
Amplify CWP Enhanced Dividend Income ETF invests in a diversified basket of high-quality, income-generating U.S. equities and employs a covered-call overlay to generate additional premium income.
2. Yield and Dividend Growth
The ETF pays $2.90 per share annually, representing a 6.49% yield on current NAV, and has achieved a 12.13% compound annual growth rate in dividends over the past five years.
3. Covered-Call Strategy and Risks
By writing covered calls on underlying holdings, the fund captures option premiums that boost distributions, though this approach may cap upside during strong rallies and introduce assignment risk.