Dividend investing has changed—and SCHD, JEPI, and JEPQ are the clearest proof. Each ETF generates income in a completely different way, producing dramatically different results from the same investment. SCHD offers long-term, tax-efficient dividend growth. JEPI delivers steady monthly cash flow with less volatility. JEPQ amplifies income through tech-driven upside. Together, they form a modern income toolkit built for investors who want clarity, efficiency, and results without constant monitoring.

Let’s embark on this transformative journey together and position your portfolio for success in this evolving market landscape!

Be sure to read through to the end to catch all the valuable insights this newsletter delivers to your inbox today.

Five years ago, TransMedics Group (TMDX) shares were around $14.79 each. Right now, it's holding at $130.93—a 785% total surge powered by game-changing organ transplant tech like the OCS Lung and Heart systems, which extend preservation times and boost transplant success rates. But let's drill into the six-month chart for the unvarnished truth: Starting July near $130, it climbed to peaks around $140, then dipped through August-September lows near $100 amid broader medtech jitters or earnings waits, before rebounding strongly into November for a net 1.87% gain. That's classic volatility—ups from product milestones, downs from market noise—but the overall uptrend shines, with the 52-week high of $145.50 still close and low at $55.00 a distant memory.

The five-year compound annual growth rate (CAGR) remains a healthy 54.67%, the steady yearly average (total growth raised to 1/5 power, minus 1) that turns innovation into investor rewards—about doubling every other year.

Dollar-cost averaging (DCA) is the steady heartbeat here: Keep investing $500 monthly for five years, totaling $30,000. Those chart dips to $100? They're your cue to buy extra shares at a steal, lowering your average cost while peaks like July's take smaller bites. From $130.93, at a 3.70% monthly growth rate, it all compounds.

In 60 months, your stake could hit $110,003—a $80,003 profit and 267% return. Early buys flow with full compounding, but dip-loaded months like September supercharge the recovery.

The real takeaway: If you trust TransMedics to keep delivering—refining tech, expanding FDA approvals, and growing transplant volumes—don't let short-term drops derail you. Invest regularly no matter what; in fact, buy more when prices fall, turning those valleys into your advantage. Over five years, the odds tilt toward product upgrades and market wins that drive the stock higher. With a $4.47B market cap and P/E of 54.27 baking in growth bets, your DCA discipline could make it a lifesaver by 2030. Stay invested?

The landscape of income investing no longer resembles the simple, predictable world it used to be. For someone juggling responsibilities, deadlines, and limited bandwidth, navigating today’s dividend ETFs can feel like walking through noise—until each fund is studied with clarity. $SCHD ( ▲ 0.18% ) , $JEPI ( ▼ 0.16% ), and $JEPQ ( ▼ 0.14% ) all trade at accessible prices, yet behave like entirely different tools. A $10,000 decision between them delivers dramatically different outcomes—from $388 a year to over $1,064. For someone who cannot afford inefficiency, that difference matters.

Each ETF plays a specific role in the modern income ecosystem. SCHD represents the disciplined, fundamental approach—the kind of strategy that compounds slowly but powerfully over long horizons. JEPI is engineered like a financial stabilizer, designed to generate monthly income with far less volatility than the broader market. And JEPQ brings a different dimension entirely—higher income wrapped in the aggressive upside and concentration of mega-cap technology.

This isn’t a matter of which ETF is “better.” Each one solves a different problem. SCHD supports long-term compounding with low cost and favorable tax characteristics. JEPI provides cash flow without the emotional strain of typical market swings. JEPQ offers accelerated income and access to the very companies driving AI and innovation today.

For someone overwhelmed by choices, the key is understanding that these three funds do not compete with one another—they complement one another, each addressing a distinct financial need.

SCHD has become a cornerstone for disciplined dividend investors for a reason. Its philosophy is rooted in selecting companies that have demonstrated years of stable earnings, durable cash flow, and consistent dividend growth. With more than a decade of performance data and nearly $70 billion under management, SCHD isn’t built on flash—it’s built on reliability.

Its foundation lies in 103 high-quality companies chosen from the Dow Jones U.S. Dividend 100 Index. These are mature, cash-productive businesses: names in healthcare, consumer staples, and industrials that have paid dividends through recessions, rate hikes, and political cycles. Companies like Amgen, Cisco, Merck, PepsiCo, and AbbVie serve as anchors—not because they’re exciting, but because they’re resilient.

Beyond that, SCHD’s cost advantage is unmatched. At 0.06% annually, it allows more capital to stay invested, compounding over time. For investors in taxable accounts, its qualified dividends are taxed favorably, creating long-term efficiency other funds cannot replicate.

While SCHD’s yield is lower than the premium-income ETFs, its dividend growth is steady, rising 5.79% over the past year. And although its recent price performance has lagged—returning 7.3% year-to-date and –1.61% over the last twelve months—its long-term trajectory remains strong. Over five years, its annualized return is 11.51%, proving that consistency can outperform tactical strategies across full market cycles.

For an investor who prefers predictability, who values low fees, and who thinks in decades rather than months, SCHD remains one of the most reliable long-term income engines available.

JEPI represents a different philosophy—one designed around income stability rather than long-term dividend growth. Instead of relying solely on corporate payouts, JEPI integrates a covered-call options overlay, allowing the fund to generate option premiums that form the backbone of its monthly distributions.

This structure gives JEPI a uniquely defensive profile. With a beta of 0.57, it moves just over half as much as the S&P 500. When the market drops 10%, JEPI historically declines around 5.7%. For an investor who values peace of mind and lower volatility, this stability matters as much as the income itself.

JEPI’s portfolio is built for diversification. No single stock dominates the fund. The top 10 holdings make up only 15.8%, and companies such as Nvidia, Alphabet, Amazon, and Microsoft are present but never overpowering. With 125 total holdings, the ETF spreads risk across sectors and minimizes the impact of individual market shocks.

Income is JEPI’s headline feature. A $10,000 investment produces roughly $832 a year—far more than SCHD—and monthly payments create a steady rhythm that aligns naturally with real-life expenses. Its distributions have grown 11.35% over the past year, boosted by elevated volatility that increases option premiums.

Performance has been modest but consistently positive. JEPI delivered 5.3% year-to-date and 5.29% over the past year, with a three-year annualized return of 12.99%. While it may not match the explosive returns of tech-driven ETFs, JEPI’s value lies in protecting capital while delivering reliable income.

For an investor who prioritizes stability, reduced volatility, and monthly cash flow—especially in tax-advantaged accounts—JEPI functions as a dependable financial cushion.

JEPQ takes JEPI’s core strategy and amplifies it through the Nasdaq 100—a universe dominated by the most innovative, high-growth companies in the world. This approach brings both heightened opportunity and heightened risk. With nearly half of the portfolio in technology and 47.9% concentrated in its top 10 holdings, JEPQ is a deliberate bet on AI, cloud computing, semiconductors, and mega-cap innovation.

Its largest positions—Nvidia at 9%, Apple at 7.2%, and Microsoft at 6.9%—collectively account for nearly a quarter of the fund. This level of concentration magnifies volatility; the standard deviation sits at 14.1%, the highest among the three ETFs. Yet this same structure fuels extraordinary performance when technology surges.

Income is where JEPQ stands out most. Its yield of 10.67% translates into $1,064 per year on a $10,000 investment—paid monthly. Over the past year, its distributions grew 12.54%, capturing the elevated option premiums created by sharp price swings in technology stocks.

Performance reflects its aggressive nature. JEPQ has surged 13.98% year-to-date, delivering 20.84% over the last twelve months. Its three-year annualized return of 24.5% dwarfs both SCHD and JEPI. When technology leads the market—and the AI cycle continues to accelerate—JEPQ captures that upside efficiently.

However, risk remains real. During the tariff-driven sell-off in October 2025, JEPQ experienced drawdowns exceeding 20%. Its concentration means setbacks in mega-cap tech ripple more intensely through the fund.

For investors comfortable with volatility, investing in tax-sheltered accounts, and seeking the highest possible income with the potential for strong growth, JEPQ stands out as a powerful but assertive income vehicle.

No single ETF “wins”—they succeed in different ways, for different people, at different stages of financial life. SCHD offers low-cost stability and favorable taxation, making it ideal for long-term compounding and taxable accounts. JEPI provides income with lower volatility, becoming a dependable choice for those who value consistency and calmer markets. JEPQ delivers the highest income and strongest recent performance, suited for investors willing to accept concentrated exposure and sharper swings.

The real advantage emerges when these ETFs are not viewed as competitors, but as components of a unified strategy—each one strengthening the weaknesses of the others. A thoughtful blend can deliver diversified income, risk management, and long-term growth simultaneously.

A structure like the following aligns with what many sophisticated investors quietly adopt:

This combination creates a portfolio able to withstand downturns, capitalize on long-term compounding, and participate in technology-driven upside—all while generating meaningful monthly and quarterly income.

When markets turn unpredictable, the right allocation becomes more valuable than the right prediction. For someone managing complexity every day, clarity and alignment matter more than chasing the perfect ETF. SCHD, JEPI, and JEPQ each carry the strengths necessary to serve as building blocks for a strategy that supports stability, income, and growth—without demanding constant attention.

In a world full of noise, the right tools bring structure. The right structure brings clarity. And clarity is the greatest advantage an overwhelmed investor can have.

Ready to Revolutionize Your Wealth?

Here's what's waiting for you:

With the world becoming increasingly digital, this question will be on the minds of millions of people looking for new income streams in 2025.

The answer is—Absolutely!

Thank you for taking the time to read today’s email! Your support is what allows me to send out this newsletter for free every day. 

 What do you think of the new format? Please provide your feedback in the poll below, and if you find the newsletter valuable, feel free to share it with other investors!

Disclaimer: This newsletter is for informational purposes only and should not be considered financial advice. Please consult with a financial advisor before making any investment decisions.