Complete DIVO Monthly Dividend Investment Guide 2025
Maximize monthly dividends and option income with Amplify CWP Enhanced Dividend Income ETF 💰
DIVO ETF is an innovative monthly dividend ETF from Amplify that seeks high yields of 4-7% annually through two income streams: dividends and option premiums.
Use our calculator to predict future returns from DIVO's monthly dividends and covered call strategies.
- - Current Price: $42.23
- - 12-month trailing dividend yield: approximately 4.5%
- - Total assets under management: $4.5 billion
- - Expense ratio: 0.56%
- - Distribution: Monthly (end of each month)
- - Morningstar 5-star rating
💡 Note: DIVO pays monthly dividends and provides additional income through covered call option strategies. This differentiates DIVO from typical quarterly dividend ETFs, offering more frequent cash flow.
DIVO (Amplify CWP Enhanced Dividend Income ETF) is an innovative ETF gaining attention among monthly dividend investors. It combines high-quality dividend stock investing with tactical covered call strategies to provide stable monthly income and additional option returns.
DIVO Analysis Tools
Check detailed information about DIVO's dividend history and option yield trends. Successful monthly dividend investing starts with accurate information.
DIVO Portfolio Analysis
Check holdings, sector allocations, and option strategies
DIVO Monthly Dividend History & Yield
Complete monthly dividend records, option income, and total return analysis
DIVO Investment Tips
On the dividend information page, you can check DIVO's complete monthly dividend history, option premium income, and real-time yields. You can also see upcoming ex-dividend dates and payment dates through the monthly dividend calendar. If you're planning to reinvest monthly dividends, analyze how DIVO's covered call strategy generates additional income.
1. What is DIVO ETF?
DIVO is an innovative monthly dividend ETF launched by Amplify in December 2016 that tracks the CWP Enhanced Dividend Income Portfolio. This ETF has a unique structure that invests in high-quality large-cap stocks with dividend growth potential while simultaneously generating additional income through tactical covered call option strategies.
Key Features
2. Understanding DIVO's Investment Strategy
2-1. Dual Income Structure
DIVO's biggest characteristic is utilizing two income sources simultaneously. First is dividends from quality companies with dividend growth potential, and second is premiums from tactically writing covered call options on held stocks.
Top Holdings (Major Portfolio Weight) - As of March 31, 2025
Sector Allocation (As of March 2025)
27.45%
17.13%
14.54%
13.12%
8.09%
6.71%
4.48%
8.48%
Concentrated investment portfolio with 24 carefully selected holdings
3. DIVO Monthly Dividend Characteristics
DIVO's monthly dividends have powerful characteristics that differentiate it from typical quarterly dividend ETFs. It provides stable monthly cash flow and seeks high yields through two income sources: dividends and option premiums.
DIVO's Dual Income Structure
Target Yield by Income Source
Source: Amplify ETFs, as of March 2025
DIVO Monthly Dividend Trend
DIVO's monthly dividend per share over the last 12 months:
| Month | Dividend ($) | MoM Change | Annualized Yield (%) |
|---|---|---|---|
| Apr 2024 | $0.16 | +0.01 | 4.5% |
| May 2024 | $0.16 | 0.00 | 4.5% |
| Jun 2024 | $0.16 | 0.00 | 4.5% |
| Jul 2024 | $0.16 | 0.00 | 4.5% |
| Aug 2024 | $0.16 | 0.00 | 4.5% |
| Sep 2024 | $0.16 | 0.00 | 4.5% |
| Oct 2024 | $0.16 | 0.00 | 4.5% |
| Nov 2024 | $0.16 | 0.00 | 4.5% |
| Dec 2024 | $0.16 | 0.00 | 4.5% |
| Jan 2025 | $0.16 | 0.00 | 4.5% |
| Feb 2025 | $0.16 | 0.00 | 4.5% |
| Mar 2025 | $0.16 | 0.00 | 4.5% |
| 12-Month Total | $1.92 | - | 4.5% |
* Annualized yield based on share price of $42.23.
* Source: Amplify ETFs official data (as of March 2025)
Advantages of DIVO Monthly Dividends
- • Stable monthly cash flow for living expenses or reinvestment opportunities
- • Additional option premium income through covered call strategies
- • High yields through concentrated investment in 24 selected stocks
- • Increased option premium income during periods of high market volatility
4. Considerations When Investing in DIVO
Advantages
- ✓Stable monthly cash flow provision
- ✓High yields through dual income sources
- ✓Professional covered call strategy management
- ✓Concentrated investment in 24 quality stocks
- ✓Morningstar 5-star rating recipient
Disadvantages
- •Relatively high expense ratio (0.56%)
- •Potential upside limitation due to covered calls
- •Individual stock risk from concentrated investing
- •Complexity of option strategies
- •Short-term performance volatility
5. DIVO Performance Analysis
Historical Performance
| Year | Total Return (%) | Dividend Yield (%) | S&P 500 Return (%) |
|---|---|---|---|
| 2017 | 21.8% | 4.2% | 21.8% |
| 2018 | -2.1% | 4.8% | -4.4% |
| 2019 | 26.1% | 4.1% | 31.5% |
| 2020 | 12.7% | 5.3% | 18.4% |
| 2021 | 17.8% | 4.7% | 28.7% |
| 2022 | -2.8% | 5.1% | -18.1% |
| 2023 | 27.1% | 4.4% | 26.3% |
| 2024 | 20.5% | 4.5% | 23.9% |
Source: Amplify ETFs official data (as of March 2025)
DIVO Covered Call Strategy Effectiveness
DIVO's covered call strategy shows differentiated performance in the following market conditions:
Excellent Performance in Sideways Markets
When markets don't move significantly, option premium income is generated stably, providing additional returns.
Higher Premiums During Increased Volatility
When market volatility increases, option premiums rise, expanding additional income opportunities.
Upside Limitation in Bull Markets
Covered calls may limit participation in rapid stock price increases during strong bull markets.
Key Implications
- Stable cash flow creation through monthly dividends and option premiums
- Loss mitigation effect through option premiums even in down markets
- Synergy between compounding effects and monthly dividend reinvestment in long-term investing
- Consider diversified investment with other growth ETFs during strong bull markets
6. Comparison with Other Monthly Dividend ETFs
Popular Monthly Dividend ETF Comparison
| Feature | DIVO | JEPI | QYLD | XYLD |
|---|---|---|---|---|
| Investment Strategy | Dividend stocks + Covered calls | ELN + OTM covered calls | ATM covered calls | ATM covered calls |
| Underlying Assets | 24 selected stocks | S&P 500 | Nasdaq 100 | S&P 500 |
| Dividend Yield | 4.5% | 7~9% | 14.2% | 10.8% |
| Capital Growth Potential | High | Medium | Limited | Limited |
| Expense Ratio | 0.56% | 0.35% | 0.60% | 0.60% |
| Morningstar Rating | 5-star | 4-star | 3-star | 3-star |
Considerations When Choosing ETFs
7. Frequently Asked Questions
Why does DIVO pay monthly dividends?
DIVO pays monthly dividends to provide investors with stable monthly cash flow. This helps with living expense assistance, regular reinvestment opportunities, and maximizing compounding effects. Additionally, premium income generated from covered call option strategies is also distributed monthly, providing more stable returns.
What is a covered call strategy?
A covered call is a strategy where you sell call options on stocks you own. DIVO tactically writes covered calls on individual stocks in the portfolio to receive option premiums. This generates additional income (2-4% annually) beyond dividends. However, if the stock price exceeds the strike price, upside gains may be limited.
Which is better, DIVO or JEPI?
Both ETFs pay monthly dividends but have different strategies. DIVO concentrates on 24 selected stocks and uses tactical covered calls to pursue long-term capital growth and stable dividends. JEPI is based on the S&P 500 and provides higher current yields (7-9%) but has relatively limited capital growth. If you prioritize long-term investment and capital growth, DIVO might be more suitable, while JEPI could be better if you need higher current income.
Is DIVO suitable for long-term investment?
DIVO is very suitable for long-term investment. Its characteristics of pursuing both monthly dividends and capital growth help maximize long-term compounding effects. Additionally, the portfolio centered on 24 quality stocks and professional option management provide defense against market volatility. If you use a monthly dividend reinvestment strategy, you can achieve a virtuous cycle where the number of shares increases over time and monthly dividend income grows accordingly.
What is the optimal strategy for investing in DIVO?
There are several effective strategies for DIVO investment. First, a monthly dividend reinvestment (DRIP) strategy is effective for maximizing long-term compounding effects. Second, dollar-cost averaging (regular fixed-amount investment) helps utilize market volatility and lower average purchase prices. Third, a balanced approach using DIVO as a monthly dividend foundation combined with quarterly dividend ETFs like VYM or SCHD is also a good strategy.
8. Conclusion and Investment Strategies
Who is DIVO Suitable For?
Suitable Investor Types:
- Investors who need stable monthly cash flow
- People seeking both dividend income and capital growth
- Investors planning for retirement or securing monthly income
- Those who want to benefit from professional option strategies
- Investors pursuing high yields through concentrated investing
Consider Carefully If You Are:
- An investor sensitive to expense ratios (0.56%)
- Someone concerned about upside limitations from covered calls
- An investor unable to handle risks from concentrated 24-stock investing
- Someone who prefers simple index investing only
Effective DIVO Utilization Strategies:
- Monthly Dividend Reinvestment: Reinvest monthly dividends to maximize compounding effects
- Regular Additional Investment: Use dollar-cost averaging to leverage market volatility
- Balanced Portfolio Construction: Use DIVO as monthly dividend foundation combined with VYM, SCHD, etc.
- Tax-Efficient Account Utilization: Hold DIVO in tax-advantaged accounts like IRAs, 401(k)s
- Market Correction Buying Opportunities: Add more shares during market downturns to lower average purchase price