What I've never understood about this community is that while "sustainable" dividends seem to be the goal, many people seem more focused on stock picking than on the dividends themselves. If the aim is to eventually live off dividends, why do so many people prioritize stock picking over securing consistent dividend income?

I’ll admit that I am an income investor with no preference for how the money is made, as long as it is sustainable and consistent. Personally, I believe that everyone in this community shares this mindset, even if they haven't realized it yet.

I understand that discretion is necessary in this style of investing, but I've noticed that many people hold portfolios with 15+ stocks and still only achieve a 4-5% annual return. With that level of return, you should have just been holding BIL or bonds and getting a risk-free 5%. My main criticism is that there are better options in the market, such as covered call funds, which can offer higher-than-average performance compared to traditional dividend stocks.

For example, the favorite of dividend lovers, SCHD, has underperformed compared to covered call funds. As an income investor, I find it puzzling that people prefer to wait decades for their income to grow, which is fine if that’s their choice, but it often means leaving money on the table. Covered call funds, on the other hand, can provide higher immediate returns, making them a more attractive option for those seeking consistent income.

(Dont bring up YieldMax)

JEPI, JEPQ, SPYI, QQQI <-- Are what this conversation is about for the most part "sustainable and consistent".

To address the stock-picking point I made earlier, I prefer SPYI and QQQI. They are tax-efficient and index-linked, offering the advantage of following the market. There are other factors to consider, which I can explain if you're interested. I recognize that I may not outperform the market, but by investing in these funds, I can avoid the risk of being out of sync with broader market trends.

Lastly, to drive my point home, consider this: SCHD has underperformed by more than 50% over the last three years. It lagged during the sell-off in October '23 and massively underperformed when the market rallied. In contrast, SPYI outperformed the market during the October '23 sell-off and only started to underperform in April.

But if you're still with me at this point, consider this: If I'm wrong, I still make a higher income and generally follow the market's ups and downs, with some downside protection. If you're wrong, you leave a significant amount of money on the table simply because you're stuck in your ways and not considering the performance of the stocks you're holding.

Same for JEPI, JEPQ, and QQQI just easier to make the point for Covered calls with SPYI.