Published on April 10, 2026

by Val Cipriani

New feature

The new tax year is upon us, meaning many investors will have a lump sum to add to their stocks-and-shares Isas – at what is a scary time to go about allocating capital. Recent levels of uncertainty would give pause even to the most veteran of investors.

As a general principle, the right thing to do is stay the course. Review your strategy and portfolio, and as long as they are still right for your goals and time horizon, it’s business as usual. If you are feeling worried about investing a lump sum in one go, you can always drip-feed the money into the market over a few weeks or months.

Still, you might be pondering which types of equity funds are likely to fare best over the next few months if the Middle East ceasefire doesn’t hold, or if volatility returns in another form.

Investors’ Chronicle

A quality resurgence

The theory goes that the most defensive equity sectors comprise companies selling essential goods and services. Broadly, this applies to the likes of consumer staples, healthcare and utilities.

In reality it’s a little more complicated. For example, within healthcare, there are also a number of growth-focused biotech companies that are actually quite racy, while the big pharmaceutical companies make up the more defensive side of the sector. But the idea is that defensive companies’ earnings should prove resilient even during an economic downturn.

Looking for global equity funds with above-average exposure to these sectors will usually lead you to managers deploying a ‘quality’ strategy. The most famous example, Terry Smith’s Fundsmith Equity (GB00B41YBW71), currently has more than half of its portfolio between healthcare and consumer staples, with Unilever (ULVR) as one of its top holdings.

Quality as a style does have a defensive tilt, at least in theory, given it looks for resilient, cash-generative companies with solid balance sheets. But the style has been out of fashion in the past few years and these funds have actually underperformed quite severely, especially in the UK and Europe.

This is partly because valuations had grown pretty demanding, and partly due to sector-specific or company-specific issues, such as the struggles seen at weight-loss drug provider Novo Nordisk (DK:NOVO.B). Arguably, it is also partly because, despite the various geopolitical crises of the past few years, markets remained fairly ‘risk on’ throughout, never really going into defensive mode for prolonged periods of time.

If the war in Iran continues, leading to higher inflation and economic stagnation, will that give quality companies a fresh boost? It could, but with interest rates likely to stay higher for longer, valuations remain a crucial consideration.

As at the end of 2025, Morningstar estimates that Fundsmith’s portfolio was still trading on a price/earnings (PE) ratio of 24. This will be lower now – the fund has shed about a tenth of its value year to date – but is still not exactly cheap. Some quality companies are starting to look less pricey, however. Unilever, for instance, was trading on a multiple of about 16 at the time of writing, although again this is partly for stock-specific reasons: investors are worried about how energy shocks will affect both its costs and its emerging market customers, and unsure about the planned spin-off of its food business.

The chart below shows how, with value stocks outperforming and quality struggling, the valuation gap between some high-profile value and quality funds is closing somewhat.

Still, a focus on valuations should continue to favour value companies overall. These have been outperforming over the past couple of years, particularly in Europe and the UK. Typical ‘value’ territory usually means a PE ratio no higher than the low teens.

Rob Morgan, chief investment analyst at Charles Stanley, argues: “Regions, sectors and styles that are priced for perfection are more vulnerable, while areas trading on reasonable multiples with solid cash generation offer a better margin of safety. This rewards patience in unloved but fundamentally sound areas.”

Jason Hollands, managing director of Bestinvest, thinks we are entering a period of ‘warflation’ rather than stagflation for the US economy – a temporary rather than permanent energy supply shock, which may not seriously impact the economy or companies, whose earnings expectations and balance sheets still look reasonably resilient. “That said, risks are building: higher energy costs, tighter financial conditions and rising bond yields all increase the probability of slower growth and potential earnings downgrades if the situation persists,” he adds.

Assuming a period of higher energy prices and lower global growth, “the balance of probabilities would favour more value-oriented investment strategies”, he says.

The funds to buy

Experts emphasise the importance of diversification in the current environment. The war could end this month or persist for some time longer yet, so we just don’t know what is going to work. Blending different styles and asset classes is a good starting point.

If you do want to give quality a go but look beyond the usual suspects of Terry Smith and Nick Train, Ben Yearsley, investment director at Fairview Investing, suggests Trojan Global Income (GB00BD82KP33). The fund invests in quality companies “purchased at attractive valuations and held for the long term”. As at the end of February, a third of the fund was in consumer staples, and another 11 per cent in healthcare. It was fairly concentrated, with just 32 stocks, and the top holdings were American derivatives exchange company CME Group (US:CME) and British American Tobacco (BATS).

For value, Hollands suggests the Xtrackers MSCI World Value ETF (XDEV), Murray International (MYI) and Ranmore Global Equity (IE00B61ZVB30). The latter was recently profiled on the IC (‘My favourite holding period is a day’). First, keep in mind that even with trackers, you do still need to take a look at what’s inside; this one still has significant exposure to the US, even if this weighting is less than the broad stock market (42 per cent).

This exposure may not be the worst thing in the world considering value stocks in the US have not rallied as enthusiastically as their European counterparts in the past year or so. Still, the ETF also has a lot in the tech sector (28 per cent), and its biggest holding is semiconductor company Micron Technologies (US:MU), whose share price has increased more than fivefold in the past year.

Meanwhile, Morgan argues for a combination of value and growth strategies. “Higher interest rates raise the cost of capital, so companies with low debt, strong free cash flow, and resilience across the cycle are likely to outperform the highly leveraged, except in the cases of very strong structural growth stories where the debt load melts away,” he says. “It’s therefore a bit of a ‘barbell’ situation for investors.”

He favours a “core of resilient compounders”, provided by value-tilted funds with a focus on earnings growth such as M&G Global Dividend (GB00B39R2Q25) and Artemis Global Income (GB00B5ZX1M70), combined with “a collection of unique growth situations”, such as the companies targeted by Scottish Mortgage (SMT).

For defensive exposure, you could also consider a sector-specific fund, although of course this is a more targeted option, not a core global equity holding. Yearsley suggests taking a look at the listed infrastructure sector, where his fund of choice is First Sentier Global Listed Infrastructure (GB00B24HJL45); Morgan likes FTF ClearBridge Global Infrastructure Income (GB00BMF7D662).

jalalive crystalhillglasses.comx 3534@capitalgadgets.com 156.241.137.2

This is now one of my favorite blog posts on this subject.

Thursday 16 April

Baillie Gifford Shin Nippon PLC ex-dividend date
BlackRock Latin American Investment Trust PLC ex-dividend date
JPMorgan American Investment Trust PLC ex-dividend date
JPMorgan Asia Growth & Income PLC ex-dividend date
JPMorgan European Growth & Income PLC ex-dividend date
Merchants Trust PLC ex-dividend date
Montanaro UK Smaller Cos Investment Trust PLC ex-dividend date
Unite Group PLC ex-dividend date

Dividend Investing, High-Yield Investing, High-Yield Investments

April 11, 2026 by Dividend Report Staff

Some of the dividend stocks below are the best dividend stocks while others require more research.

Ticker	Ex-Div Date	Pay Date	Amount	Yield
MVO	4/15/2026	4/24/2026	$0.17	29.96%
OXSQ	4/16/2026	4/30/2026	$0.04	23.08%
SPMC	4/15/2026	4/30/2026	$0.20	20.80%
BCAT	4/15/2026	4/30/2026	$0.26	20.41%
OXLC	4/16/2026	4/30/2026	$0.20	19.80%
GGT	4/16/2026	4/23/2026	$0.07	19.56%
PDCC	4/16/2026	4/30/2026	$0.22	19.00%
OCCI	4/15/2026	4/30/2026	$0.05	18.93%
ARR	4/15/2026	4/29/2026	$0.24	17.57%
HRZN	4/16/2026	5/15/2026	$0.06	15.38%

Data current as of 4/10/26

Data presented in this table is for information purposes. Other than for those equities included in the portfolios of Investors Alley subscription services no analysis is provided on any equities mentioned in this table, nor is any endorsement to any equity in this table to be inferred or implied because of that equity’s inclusion.

The Best 13% Yield Opportunity in Today’s Market

April 13, 2026  by Tim Plaehn

Private credit investments are pools of non-publicly traded loans to corporations, in which investors invest and participate in the earnings of a private credit portfolio. These investments are sold through investment advisors who like offering investments that their clients cannot source on their own.

In recent months, a fear has gripped investors about the possibility of massive defaults on loans in private credit portfolios. The private credit investments, by contract, limit the amount an investor can withdraw each quarter.

Fears about potential private credit problems have pushed investors into these products to request withdrawals well above the contract limits. With the news, fear grows, and the share prices of the companies that provide private credit investments have been hammered. For example, Blue Owl Capital Inc. (OWL) is down 43% year to date, and KKR 7 Co. (KKR) is off 28%.

Private credit market fears have spread to stocks that are not directly connected to or affected by any potential problems with the types of investments offered by the likes of OWL and KKR.

Publicly traded business development companies (BDCs) also make loans to corporations. BDC client companies are smaller than the typical private credit borrower, and they become deeply involved in the business operations of the companies they finance.  The businesses and profits of quality BDCs will be fine. However, fears about private lending have also driven BDC share prices down.

With that in mind, I want to highlight Hercules Capital Corp (HTGC), a $2.7 billion market cap BDC.

HTGC is down 20% this year, pushing its regular dividend yield to more than 10%. And, the company has declared quarterly supplemental dividends, pushing the total yield to almost 13%.

On April 6, Hercules issued a press release announcing that, for the first quarter, the company had all-time-high commitments for new debt and equity investments. It continued :

“In the three months ended March 31, 2026, Hercules originated $1.81 billion of new debt and equity commitments to 16 new and 12 existing portfolio companies.”

Hercules Capital is a BDC of the highest quality. The company has provided great returns to investors for almost 20 years. Private credit fears have put HTGC shares “on sale,” and buying some now will make you a very happy investor a year or two down the road.

CMPG/CMPI offer exposure to best-in-class managers in the investment company universe.

Overview

CT Global Managed Portfolio Trust provides exposure to attractive investment themes through two Portfolios of investment companies via two share classes: CMPG, which aims to deliver capital growth, and CMPI, which focuses on income. Since June 2025, the trust has been managed by Adam Norris and Paul Green, who succeeded long-standing manager Peter Hewitt, who will retire at the end of October. Together, the new managers bring 35 years of investment experience.

Since taking over, Adam and Paul have increased exposure to themes where they see strong opportunities, including US and emerging market equities, which they expect to deliver robust earnings growth. They have also added to private equity-focused investment companies where realisations are emerging, such as Oakley Capital Investments (OCI) in the growth share class. Finally, the managers have identified attractive total return potential in the AIC Infrastructure sector, topping up their holding in Pantheon Infrastructure (PINT) in both CMPG and CMPI portfolios.

Moreover, while the basic strategy remains unchanged, Adam and Paul aim to adopt a higher-conviction approach, holding fewer investment trusts in larger size positions. They also plan to increase the allocation to global equities while reducing the UK weighting. In fact, this process is already underway, with additions to JPMorgan Global Growth & Income (JGGI) across both share classes and the exit of Lowland Investment Company (LWI) and Finsbury Growth & Income (FGT) from CMPG’s portfolio.

Assuming no unforeseen circumstances, the board expects CMPI to pay a Dividend of at least 7.6p for the current financial year, implying a prospective yield of c. 6.5%. At the time of writing, CMPG and CMPI were trading at Discounts of 3.3% and 2% respectively.

Analyst’s View

The new managers’ plan to increase the allocation to global equities and to build higher-conviction portfolios over time is, in our view, an exciting development. This should enable both share classes to capture a broader opportunity set, particularly in faster-growing regions, while the stronger emphasis on the managers’ best ideas could enhance long-term performance and reduce overlaps, albeit with greater sensitivity to the performance of individual holdings.

CT Global Managed Portfolio Trust offers exposure to promising themes, including US and emerging market equities, which are expected to deliver robust earnings growth, as well as private equity strategies benefiting from realisations. In fact, Adam and Paul see significant pent-up value in private equity-focused closed-end funds, which could be unlocked when IPO activity resumes and M&A activity picks up. While CMPI captures these opportunities to a lesser extent due to its income mandate, we think it offers an attractive prospective yield of c. 6.5%, well above that of the FTSE All-Share Index and the average constituent of the AIC Global Equity Income and UK Equity Income sectors.

Finally, we note that several closed-end funds are still trading at wide discounts, particularly those focused on alternative assets. While this reflects the challenges these sectors have faced over the past three years, it could also mean that both CMPI and CMPG portfolios are well positioned to capture a potential recovery. In particular, we believe that closed-end funds in more interest rate-sensitive areas, such as renewable energy infrastructure, could benefit from a more supportive rate environment.

Bull

• Higher-conviction portfolios and greater global diversification could boost returns
• Offers exposure to promising growth themes
• Could benefit from a recovery in alternative-focused sectors

Bear

• Retirement of long-standing manager
• Trust of investment companies approach results in high overall cost of investment
• Gearing on underlying trusts and income share class can exaggerate

Source: Columbia Threadneedle Investments, as at 31/08/2025

The new managers also see strong total return opportunities in the infrastructure space and have introduced Pantheon Infrastructure (PINT) into both CMPG and CMPI portfolios. PINT provides exposure to infrastructure assets across North America, Europe, and the UK through co-investments. With its focus on areas such as data centres and other digital infrastructure, Adam and Paul see significant growth potential in PINT’s portfolio and believe that future realisations could be supported by private equity capital. Adam and Paul have also introduced Cordiant Digital Infrastructure (CORD) into CMPI’s portfolio. As of 16/09/2025, CORD holds six companies that own infrastructure assets embedded in the digital economy, including communication towers, fibre-optic networks, and data centres, primarily in Europe. The investment company follows a ‘buy, build and grow’ approach, aiming to acquire companies, develop them to increase revenues, and expand their asset base. Adam and Paul note that CORD is highly cash-generative, which has enabled the company to increase its dividend each year since its launch in 2021 (offering a yield of c. 4.5% at the time of writing), while also reinvesting to grow its capital base, providing attractive NAV growth prospects. Given its strong total return potential, Adam and Paul do not rule out introducing CORD into CMPG’s portfolio in the future.

Finally, the new managers have increased CMPI’s holding in BioPharma Credit (BPCR), which specialises in providing loans to companies in the life sciences industry. These companies have struggled to raise capital through equity, as investor appetite for higher-risk, speculative ventures has waned amid a higher interest rate environment. They have also faced regulatory and political risks, including the Trump administration’s plans to introduce drug price controls and the vaccine scepticism of Robert Kennedy Jr., the new Secretary of Health and Human Services. As a result, companies in the life sciences sector have become more reliant on debt. Adam and Paul also note that BPCR charges high interest on its loans, incentivising companies to repay early and incur substantial prepayment fees, which have historically been used to pay special dividends. At the time of writing, BPCR offered a prospective yield of c. 7%.

Having skin in the market is often a good way to build up your knowledge of Investment Trusts, so could be a starter option.

CMPG Higher risk as TR only.

CMPI Lower risk as even if your timing is wrong you still have the dividends to re-invest.

Or you could have a 60/40 split and re-balance as profit/losses occur.

Higher risk trade that turned out to be a lower risk trade.

CMPG is the companion share to CMPI, CMPG mainly growth but some income and CMPI mainly income but some growth.

One to watch, as it’s likely to continue down but maybe a Trust to research if you are building a pot for your tax free element of your SIPP pension.

Pays a small dividend so could be Pair Traded

Lower risk to hold shares like Polar Tech, no trade is risk free but if you can choose when to sell it’s likely to be at a profit.

On Target.

Dividends for the first two months of the current year will be £1,720.00.

Cash at the end of next month for re-investment will be £2,202.00.

Most probably heading for a higher yielding Investment Trust to balance out the recent purchases in TMPL/MRCH.

All purchases include ten pound buying costs and five pound selling costs.

Costs whilst in days of yore were a big drag on re-investing small amounts of cash are now manageable.

GPIQ: Goldman Sachs Built The Income ETF I Wish Existed 5 Years Ago

Apr 10, 2026, 8:30 AM ETGoldman Sachs Nasdaq-100 Premium Income ETF (GPIQ)NVDA, AAPL, JEPQ, QQQ

Steven Fiorillo

Summary

• The Goldman Sachs Nasdaq-100 Premium Income ETF offers a dynamic covered call strategy, delivering a 10.42% yield and strong total returns since inception.
• GPIQ’s flexible overwrite approach allows active adjustment of call coverage, capturing elevated option premiums during volatility while retaining upside exposure.
• Tax-advantaged distributions and a tech-heavy portfolio position GPIQ as a compelling income vehicle, particularly in uncertain or volatile markets.
• I remain bullish on GPIQ, adding to my position as its structure thrives amid elevated volatility and upcoming earnings uncertainty.

I have been investing in and writing about income-producing assets for a long time now. I have an entire segment of the portfolio structured around generating cash flow from equities. I spend quite a bit of time tracking and analyzing my income producing assets and I believe that the current market environment is an attractive entry point for long-term investors into income producing assets. The big thing about covered call strategy ETFs that people trend to glance over is that they are not conservative vehicles for people afraid of stocks just because they have a large distribution yield. They are structured to pay out a large amount of income for capping some of your upside during periods when nobody knows what is coming next.

I believe that the Goldman Sachs Nasdaq-100 Premium Income ETF (GPIQ) is built for this exact moment. The Iranian conflict has caused the flow of roughly 20% of global oil supply to become constricted as the Strait of Hormuz has become the most important global choke point. We’re headed into the heart of Q1 2026 earnings with big banks setting the stage for big tech later in the month. The market is going to demand proof that Big Tech AI spending is translating into real revenue causing uncertainty which could translate to increased options premiums. GPIQ is paying a distribution of $5.33 which is a yield of roughly 10.42% at a time when GPIQ is only down -2.7% for the year. I think that GPIQ will continue to generate low double digit or high single digit yields while returning positive appreciation throughout the year.

Following up on my previous article about GPIQ

Back in November I had written an article on GPIQ (can be read here) and since then the total return is 2.82% due to the large distribution compared to the S”&P 500 gaining 1.69%. I felt that GPIQ offered a compelling blend of capital appreciation and double-digit yield as the dynamic covered call strategy left the upside partially uncapped. This allowed GPIQ to benefit from market appreciation while producing a large recurring income stream for investors. Despite the evolving Fed policy GPIQ’s distribution rate has been stable and I felt it had become more attractive in a failing rate environment. I am following up with a new article on GPIQ because I feel the current environment is creating opportunities for covered call ETFs especially with how uncertain the geopolitical landscape has been. In my opinion, GPIQ is built for periods like this as it can generate large amounts of recurring income when the market falls and follow the market higher on green days since a portion of the portfolio is uncapped.

What GPIQ Actually Is And How It Works

GPIQ launched in October 2023, so it does not have as long of a track record as some of the other covered call ETFs such as the Global X Nasdaq 100 Covered Call ETF (QYLD). While this isn’t a long enough timeframe for some investors what GPIQ does have is a clear and well executed strategy backed by Goldman Sachs Asset Management, and results that speak for themselves. GPIQ has constructed an equity portfolio that mirrors the Nasdaq-100 index. The top holdings look exactly like what you would expect with Nvidia Corporation (NVDA) representing 8.74% of the portfolio and Apple (AAPL) coming in at 7.67%. The tech sector makes up roughly 51% of the portfolio, with communication services at about 15% and 104 positions.

Where GPIQ gets interesting is the overlay segment of its strategy. It sells call options on anywhere between 25% and 75% of the underlying holdings which is the key differentiator. This is what Goldman calls a dynamic overwrite strategy which is significantly different than covered call ETFs operating at fixed percentages. QYLD writes calls on 100% of its portfolio every month while the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) utilizes equity-linked notes which have their own structural limitations. GPIQ can actively adjust how much of the portfolio is being overwritten based on market conditions which is what I like about it.

When volatility spikes and premiums expand, GPIQ has the ability to overwrite a larger portion of the portfolio. This allows them to collect larger premiums and deliver more income to shareholders. When the market trends higher GPIQ has the ability to reduce the overwrite percentage and let more of the underlying equity appreciation drive the share price higher. That flexibility is why GPIQ has managed to deliver both a double-digit yield and better total returns than most of its peers. GPIQ also utilizes FLEX options through the CBOE which are customizable exchange-traded option contracts. This gives the portfolio managers the ability to tailor strike prices and expiration dates in ways that standard listed options cannot match.

The taxed advantaged income profile is a benefit for income investors

GPIQ has paid $5.33 in distributions over the trailing twelve months (TTM) which is a 10.42% yield. The part that doesn’t get enough attention is the tax treatment of these distributions. A large portion of the distributions get treated as return of capital because GPIQ uses index options that qualify for Section 1256 tax treatment. The gains are split on a 60/40 basis between long-term and short-term regardless of holding period. When I considered this against ETFs that are taxed as ordinary income GPIQ looks increasingly favorable especially at the end of the year when Uncle Same gets is fair share. For some investors this aspect can become extremely favorable especially when you have larger amounts of income being generated from the underlying investment.

Since the end of 2023 GPIQ has paid 29 monthly distributions which have amounted to $12.26 of income. GPIQ opened at $38.78 and since 2023 has appreciated by 32.70% while producing another 31.71% in monthly distributions. Since it went public GPIQ has generated a total return of 64.32%. When I look at the characteristics of GPIQ the dynamic income approach looks very appealing as the monthly distribution has averaged $0.42 over the past 29 months which is a monthly yield of 0.82% based on the current share price. From an income perspective this works in my portfolio and I am very bullish on GPIQ going forward because its structure will benefit when the geopolitical tensions finally get sorted out while maintaining an attractive yield compared to the risk free rate of return.

Why Earnings Season Makes The GPIQ idea Timely

Q1 2026 earnings season is about to get started as JPMorgan Chase (JPQ) will set the tone on Tuesday 4/14. Big tech will come right as we have the April FOMC meeting at the end of the month. The consensus expectations for the S&P 500 are about 13.2% YoY earnings growth for Q1. Technology has seen its YoY earnings growth rate increase to 45.1% from 34.3% on December 31st. The market is looking for another strong quarter from the names that dominate the Nasdaq-100 which would be beneficial for GPIQ. The March washout shook out a lot of the speculative froth causing a repricing of mega-cap tech. It looks like there has been a lot of AI fatigue and the market wants proof that the amount of capital being spent on CapEx is going to pay off. I think were setting up for a scenario where the companies that deliver strong results are going to get rewarded and we’re going back to good news is good news and bad news is bad news. This kind of dispersion would be beneficial for GPIQ’s covered calls strategy because it keeps implied volatility elevated across the index.

If the Magnificent 7 come in and report strong Q1 numbers, GPIQ would participate meaningfully in the upside because it can dial back its overwrite percentage. If earnings come in mixed and the market chops sideways or pulls back further it still has the ability to generate that 10% plus yield that everyone loves collecting. This is a setup where the fund gets paid either way and the only question is how much capital appreciation comes along with it. The reality is that nobody except the management teams know what these companies are going to produce and more importantly what they will guide for. What we do know is that the implied volatility embedded in Nasdaq-100 options right now is elevated relative to where it was for most of 2024 and early 2025. This has become a direct input as to how much income GPIQ can generate. When the VIX was sitting at 13 or 14, covered call funds had to work harder for their yield and now with the Vix over 20 the premiums are significantly larger.

GPIQ is outperforming it’s peers since inception and it’s not even close

I compared GPIQ to the Invesco QQQ Trust (QQQ), the SPDR S&P 500 Trust (SPY), QYLD, JEPQ, and the Neos Nasdaq 100 High Income ETF (QQQI) since it’s first day of trading and the results were overwhelmingly bullish. The metrics that I track are the starting price, todays price, how much appreciation was generated, the amount of income produced, and what the total return was. All of the data is in the table below. I am not as shocked as some may be to learn that GPIQ has almost doubled the total return of QYLD and been able to maintain a total annualized return that has almost matched the market.

Since inception GPIQ has generated $12.68 of capital appreciation while producing $12.68 in distribution income. This has led to a total return of 64.32% from a combination of 32.70% appreciation and 31.62% in distribution yield. The annualized return on GPIQ has been 22.37%. SPY which is the benchmark has a total return of 64.76% over this period with a 22.50% annualized return. GPIQ’s performance is within a half of percent of SPY. QQQ which is the benchmark for the Nasdaq 100 has a total return of 71.97% with an annualized return of 24.65%. When I look at JEPQ, QQQI, and QYLD there is a huge drop off in total return since GPIQ hit the market. JEPQ has a total return of 53.18% while QQQI and QYLD both have the same total return at 36.30%. The data is clear and GPIQ is holding its own against the market and currently superior to its peers.

The risks to investing in GPIQ

Even though I am bullish on GPIQ there are several risks to consider. The first risk is concentration considering over 50% of this fund is in technology. If the Tech sector doesn’t perform this earnings season we could experience a multi-quarter bear market in tech which will impact GPIQ’s share price. The premium income provides a cushion but it’s not going to save investors from a large step down in Nasdaq 100. . During the April 2025 tariff shock, GPIQ fell roughly 25% peak to trough before recovering. Next, if we get a ripping bull market due to the geopolitical tensions easing then GPIQ will underperform QQQ as the The covered call overlay inherently caps some upside. That is the trade-off as investors are trading some capital appreciation potential for current income. If your goal is pure growth maximization GPIQ isn’t the right investment for you. The reality is that GPIQ has only been in existence for 2.5 years and we have not seen it navigate a prolonged recession or a sustained bear market. The dynamic overwrite strategy looks great in a volatile but ultimately recovering market but there is no data as to how its overwrite strategy will perform during a genuine downturn. Investors should do their own due diligence and make sure this strategy is right for them.

Conclusion

One of the things I think about is if I was going to build building an income-focused portfolio from scratch today would I want a vehicle that gives me exposure to the best companies while paying a double-digit yield that is tax-advantaged? The answer is yes and GPIQ checks off all the boxes especially in this market environment. We are in a market where volatility is elevated and earnings season is about to inject a fresh round of uncertainty. The Fed is not likely to cut rates and the geopolitical landscape is a mess. All of those factors push implied volatility higher which pushes option premiums higher and positively impacts GPIQ’s distribution income. GPIQ doesn’t need optimal conditions or a rising market to work and it’s built for the types of uncertain environments we’re living through. I am still bullish on GPIQ and adding to my position.

This article was written by

Steven Fiorillo

I am focused on growth and dividend income. My personal strategy revolves around setting myself up for an easy retirement by creating a portfolio which focuses on compounding dividend income and growth. Dividends are an intricate part of my strategy as I have structured my portfolio to have monthly dividend income which grows through dividend reinvestment and yearly increases.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of GPIQ, QYLD, JEPQ, QQQI, NVDA, AAPL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Disclaimer: I am not an investment advisor or professional. This article is my own personal opinion and is not meant to be a recommendation of the purchase or sale of stock. The investments and strategies discussed within this article are solely my personal opinions and commentary on the subject. This article has been written for research and educational purposes only. Anything written in this article does not take into account the reader’s particular investment objectives, financial situation, needs, or personal circumstances and is not intended to be specific to you. Investors should conduct their own research before investing to see if the companies discussed in this article fit into their portfolio parameters. Just because something may be an enticing investment for myself or someone else, it may not be the correct investment for you.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Comments 

Thanks @Steven Fiorillo for this article. I manage my portfolio a little differently than I used to as I now maintain at least one year of personal distributions (sometimes 2 years) in SGOV/JAAA. Then I set my investments to DRIP and mostly leave them alone. Sometimes, I’ll trim some of my CEFs to harvest a discount-premium swing and I’ll put those monies into my savings bucket.

For 2025 I invested in QQQI QDVO and SPYI. They did well and I had some nice gains but for 2026 I changed it up and exited QQQI QDVO entirely and put everything into GPIQ and SPYI.

So far GPIQ has been doing just as well as my previous split. SPYI is lagging a little YTD but I turned DRIP off in January for this fund to help add to my SGOV bucket since I took a distribution