Core Viewpoint - The JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) has attracted nearly $32 billion in assets due to its high dividend yield of 11.52%, but this comes at the cost of potential capital appreciation [3] Group 1: JEPQ's Structure and Performance - JEPQ mirrors the Nasdaq-100 and generates income by selling covered call options, which provide monthly distributions but limit upside during stock rallies [4] - The fund has maintained monthly distributions since its inception in May 2022, with amounts fluctuating between $0.34 and $0.68 per share based on market volatility [4] - JEPQ has a competitive expense ratio of 0.35% and holds a significant portion of its assets in mega-cap technology stocks [4][7] Group 2: Opportunity Cost and Comparison with QQQ - JEPQ's top holdings include Nvidia (8.02%), Apple (7.58%), Microsoft (6.48%), Alphabet (5.88%), and Broadcom (4.95%), which have shown substantial capital appreciation over the years [5] - The Invesco QQQ Trust (QQQ), which does not employ covered calls, has outperformed JEPQ with a year-to-date return of 22.27% and a five-year return of 106.68% [6] - JEPQ's strategy results in an annual return reduction of 10-12 percentage points compared to QQQ, highlighting the trade-off between high income and capital gains [7]

Core Insights - Chevron Corp is a major player in the energy sector, involved in oil and natural gas extraction, refining, and renewable energy initiatives [1] - The article highlights three Dividend Aristocrats, emphasizing their potential for stable income and capital appreciation [4][5] Company Summaries Chevron Corp (CVX) - CVX stock has appreciated nearly 85% over the last five years, indicating strong capital growth alongside increasing dividends [7] - The company offers a forward annual dividend of $6.84, yielding approximately 4.4%, with a 37% increase in dividends over the past five years [8] - Analysts rate CVX as a Moderate Buy with a score of 4.07 out of 5, with a price target of $197 per share, suggesting a ~29% upside potential [9] AbbVie Inc (ABBV) - ABBV stock has risen 119% over the past five years, showcasing significant capital appreciation [11] - The company pays an annual dividend of $6.56, yielding 3%, with a 45% increase in dividends over the last five years and a payout ratio of 68.07% [12] - Analysts also rate ABBV as a Moderate Buy with a score of 4.07 out of 5, with a price target of $284 per share, indicating ~31% upside potential [13] Linde Plc (LIN) - LIN stock has increased by 63% in the last five years, reflecting solid capital growth [15] - The company pays a dividend of $6.00 per share, yielding about 1.5%, with a 59% increase in dividends over the past five years and a low payout ratio of 36% [16] - Analysts rate LIN as a Strong Buy with a score of 4.48 out of 5, with a price target of $576 per share, representing around 38% upside potential [17] Investment Strategy - The three highlighted companies are considered compelling options for investors seeking stable income and potential capital growth, supported by their strong market positions and commitment to shareholder value [18]