The Quality Over Quantity Approach
JEPI holds hundreds of stocks. DIVO holds about 25.
The strategy is simple but hard to execute: Buy world-class companies (Microsoft, McDonald's, Home Depot) and write covered calls on individual positions only when they look overextended.
Why Only 5% Yield?
You might look at DIVO's 4.5% yield and say "That's boring."
That is the point.
DIVO is not trying to give you a 10% yield. It is trying to give you S&P 500-like returns with slightly less risk and slightly more income.
The Growth Factor
Because DIVO only covers part of its portfolio (tactically), it captures much more upside than JEPI during bull markets.
DIVO is basically "Tier 2 (Dividend Growth)" with a turbocharger.
Who Is This For?
If you are 40-55 years old—too young for bonds but old enough to want cash flow—DIVO is your best friend. It is the bridge between "Growth" and "Income."