Investing in stocks that pay dividends can be a great way to generate passive income while building long-term wealth. In this blog post, we will take a closer look at three stocks that pay dividends: JEPI, SCHD, and SPHIX. We will compare them based on their dividend yields, historical performance, and other key factors that can help investors make informed decisions about their investments.

This blog post is not meant to be any sort of official financial advice. We are simply providing some examples that you might look into yourself if you are interested in making passive income from stocks that pay dividends. You can regard this post as an overview that offers some examples and then search the appropriate symbols and types of investments yourself to learn about them further and/or invest in them.

JEPI: $55.13/unit

JEPI is the JPMorgan Equity Premium Income ETF. This ETF invests in a diversified portfolio of large-cap U.S. stocks that have historically paid above-average dividends. JEPI currently has an Estimated distribution rate/yield of 11.3116%, which is higher than the average yield of the S&P 500. This means that investors who hold JEPI can nominally expect to receive a consistent stream of income from their investment.

One of the advantages of investing in JEPI is that it is a diversified ETF, which means that investors are not exposed to the risks associated with investing in individual stocks. JEPI has a relatively low expense ratio of 0.35%, which means that investors are not paying a significant amount in fees to invest in this ETF.

See details of this stock’s distributions and expenses here.

Note that any numbers quoted in this post may change depending on when you read this post. The distribution yield is what you would make (money you earn) when you invest in this stock so this is the type of number you want to compare with another stock to understand its yields.

SCHD: $73.20/unit

SCHD is the Schwab U.S. Dividend Equity ETF. This ETF invests in a portfolio of U.S. stocks with a history of paying consistent dividends. SCHD currently has an Estimated distribution rate/yield of 3.6091%, which is not bad but not as high as JEPI. However, please check the performance of SCHD as compared to S&P 500 over the long term for a better picture. We want you to do your due diligence here to see for yourself how this stock has performed compared to other assets.

One of the advantages of investing in SCHD is that it has a low expense ratio of 0.06%, which means that investors are not paying a significant amount in fees to invest in this ETF. SCHD is also a diversified ETF, which means that investors are not exposed to the risks associated with investing in individual stocks.

See Fidelity’s research page on this stock here to check its details on expenses and distribution rates.

Next, we are going to look at a mutual fund example but before that, we will cover the difference between mutual funds and ETFs.

Mutual Fund vs. ETF Difference (Original article)

Mutual funds and exchange-traded funds (ETFs) have a lot in common. Both types of funds consist of a mix of many different assets and represent a popular way for investors to diversify. While mutual funds and ETFs are similar in many respects, they also have some key differences. A major difference between the two is that ETFs can be traded intra-day like stocks, while mutual funds only can be purchased at the end of each trading day based on a calculated price known as the net asset value.

Mutual funds in their present form have been around for almost a century, with the first mutual fund launched in 1924. Exchange-traded funds are relatively new entrants in the investment arena, with the first ETF launched in January 1993; this was the SPDR S&P 500 ETF Trust (SPY).

SPHIX Fidelity® High Income Fund: $7.39/unit

The SPHIX Fidelity® High Income Fund is a mutual fund that invests primarily in high-yield corporate bonds and other debt securities. The fund is managed by Fidelity Investments, one of the largest asset managers in the world. The fund seeks to provide a high level of income while also maintaining a level of capital appreciation. Please note that it is also remarkably cheaper than the other funds we discussed. So this fund is one of the stocks that pay dividends that is relatively inexpensive to buy and start making passive income from.

SPHIX Dividend Yields:

One of the key factors that investors look at when considering a mutual fund is its dividend yield. The SPHIX Fidelity® High Income Fund currently has a dividend yield of the following with respect to 3 years, 5 years, and 10 years:

It is important to note that the dividend yield of the SPHIX Fidelity® High Income Fund can fluctuate over time, depending on the performance of the underlying investments in the fund. However, the fund has a history of paying consistent dividends, which can provide investors with a level of stability in their investment returns. Please note, of course, that the fund like many others has been in a loss over the last year with a yield of:

Other Key Details:

In addition to its dividend yield, there are several other key details that investors should consider when evaluating the SPHIX Fidelity® High Income Fund. These include:

• Investment strategy: The fund primarily invests in high-yield corporate bonds and other debt securities, which can provide investors with a higher level of income than other types of fixed-income investments. However, these types of investments also carry a higher level of risk.
• Expense ratio: The expense ratio of the SPHIX Fidelity® High Income Fund is 0.71%, which means that investors are paying a relatively low amount in fees to invest in this fund.
• Performance: The performance of the SPHIX Fidelity® High Income Fund can vary over time, depending on the performance of the underlying investments in the fund. However, the fund has a history of outperforming its benchmark over the long term.
• Risk: The Sphix Fidelity® High Income Fund carries a higher level of risk than other types of fixed-income investments, due to its focus on high-yield corporate bonds and other debt securities. Investors should carefully consider their risk tolerance before investing in this fund.

SPHIX summary:

The SPHIX Fidelity® High Income Fund is a mutual fund that invests primarily in high-yield corporate bonds and other debt securities. The fund has a dividend yield of +3.69% over three years. The fund also has a relatively low expense ratio and a history of outperforming its benchmark over the long term. However, investors should carefully consider the risks associated with investing in high-yield corporate bonds before investing in this fund. As with any investment, investors should consult a financial advisor to determine if the SPHIX Fidelity® High Income Fund is appropriate for their investment goals and risk tolerance.