- Dividend University
- DIV 302
The Risks of Chasing Yield
High income always comes with a trade off. This course covers the risks that catch income investors out: covered calls that give away the rallies, funds whose share price melts over time, distributions that hand back your own money, yields that look generous right before a cut, and how interest rates move all of it.
- Explain why covered calls keep the downside but cap the upside
- Recognize NAV erosion and measure it
- Explain return of capital and when it is a warning sign
- Use a checklist before buying any ultra high yield fund
Syllabus
- 111 min
The Real Risks of Covered Calls
You keep all of the downside and give away most of the upside. Here is what that costs.
- 216 min
NAV Erosion: What It Is, Real Examples and How to Avoid It
When a fund pays you with its own value and the share price drifts lower year after year.
- 310 min
Return of Capital
When part of your distribution is your own money coming back, and when that matters.
- 49 min
Yield Traps
A big yield that exists because the market already expects a cut.
- 511 min
The Risks of Ultra High Yield ETFs
What can go wrong with funds yielding 30% or more, and a checklist before you buy one.
- 69 min
Interest Rates and Dividend Investing
Why dividend stocks move with bond yields, and which ones move the most.