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Stock impact report

The Energy ETF NDIV paid 44% returns this year, but dividends may not last [Yahoo! Finance]

Petroleo Brasileiro S.A. Petrobras American Depositary Shares representing Preferred Shares (PBR.A) 
US:NYSE Investor Relations: investidorpetrobras.com.br/en
Company Research Source: Yahoo! Finance
and natural resource stocks with covered call option premiums. That dual-income pitch draws investors who want commodity-sector exposure without sacrificing yield. Whether that income stream is durable is a different question. Two Income Streams, One Commodity Risk NDIV generates income two ways. First, it collects dividends from an equity portfolio concentrated in oil, gas, and consumable fuels (65%), chemicals (22%), and energy equipment and services (13%). Second, it sells covered call options on many of those same holdings, collecting premiums that supplement the dividend income. The covered call strategy caps the fund's upside when energy stocks rally sharply, but it adds a layer of income that does not depend on commodity prices alone. The options overlay is visible in the portfolio data. Short call positions exist on holdings including LYB, DOW, PBR, FLNG, KNTK, OKE, EMN, CHRD, AESI, NOG, and others. When volatility spikes, those premiums expand, which helps explain why r Show less Read more
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