JEPI Dividend History, Dates & Yield - Stock Analysis (2024)

FAQs

Is JEPI a buy or sell? ›

The JPMorgan Equity Premium Income ETF holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average.

JEPI Dividend Information

JEPI has a dividend yield of 10.42% and paid $5.77 per share in the past year. The dividend is paid every month and the last ex-dividend date was Jul 3, 2023.

If you don't have a tax-deferred account and have to pay taxes, JEPI isn't for you. If you need to take all your dividends in cash and spend them, then JEPI isn't for you. But three kinds of investors can or even should own JEPI, as a great or even ideal choice.

JEPI is subject to equity market risk, and risk that its security selection process underperforms the broader market. Additionally, the options exposure of the equity-linked notes provides income, but limits the upside potential of the fund relative to the US stock market, and exposes investors to counterparty risk.

A Long-Term Caveat

While JEPI shines as a high-yield fund during bear markets, it's important to remember that it's not built to outperform the stock market over the long haul. The fund's main aim is to provide a stable return of 6-8% per year, a target that may not compete favorably with the returns of a bull market.

We'll start with the largest-by-a-mile dividend growth ETF: the Vanguard Dividend Appreciation ETF (VIG, $161.61), which, at $69 billion in assets under management (AUM), is nearly three times the next biggest option.

Yields from 2% to 6% are generally considered to be a good dividend yield, but there are plenty of factors to consider when deciding if a stock's yield makes it a good investment.

JEPI Analyst Price Target

Based on 1,801 Wall Street analysts offering 12 month price targets to JEPI holdings in the last 3 months. The average price target is $60.41 with a high forecast of $69.76 and a low forecast of $50.15. The average price target represents a 9.20% change from the last price of $55.32.

What is the risk of investing in JEPI? ›

Cons of Investing in JEPI

Option risk: The covered call strategy used by JEPI presents option risk, which is present if the price of the underlying stock increases significantly, and the ETF may have to sell the stock at the strike price, which could result in a loss.

While JEPI is on an uptrend, it has further upside potential based on the consensus view of over 2K analysts. Per the recommendations of 1,714 analysts, the 12-month average JPMorgan Equity Premium Income ETF price target of $60.66 implies 11.41% upside potential.

Since inception, JEPI has delivered a total return of 44% (including dividends) versus 49% for the S&P 500. The fund has underperformed the market while it's been hot and done “less poorly” during the recent bear market. JEPI is really only a buy if you believe the market is going to trade higher in the months ahead.

NYSEMKT: JEPI

Yet, the fund has an astounding 11.4% dividend yield -- so what gives? The answer lies in how the fund operates. Rather than holding the stocks and simply collecting the dividends, the fund writes call options on its portfolio, thus collecting premium income throughout the year.

To generate monthly income, JEPI can invest up to 20% in exchange-linked notes, or ELNs. These are fixed-income products issued by a counterparty that promise a return linked to a reference asset. Specifically, JEPI holds ELNs that provide exposure to out-of-the-money S&P 500 index call options.

The average price target is $60.40 with a high forecast of $69.81 and a low forecast of $50.21.