There are companies with less systemic risk and more global diversification. They are a bit more sleep-at-night. The stocks are more interest rate sensitive. He would be shifting into lower volatility. Once the market falls 20-25% you should move to full beta exposure.

It is a straight pass-through of distributions. When an ETF has a fixed distribution that is higher than what is in it, then you are getting some of your own capital in your distribution and the ETF provider could alter it.

If you are bullish on a late cycle it is probably okay to buy on this on a pullback. He does not like late cycle inflationary plays. You could buy it for a bounce over the next couple of months, however. It will not do well if we go into a recession.

It is fine but why not go to a diversified source of dividends. ZWC-T is a basket of the best of the dividends plus a covered call overlay. You could also go for a foreign ETF but dividends are taxable.

You get 6-7% return. It holds European dividend stocks with a covered call strategy. The risk is market risk but you can feel fairly safe with this one. He bought last week during the weakness.

6.49% yield. You aren’t getting your own money back. It is dividends plus covered call exposure.

He likes it. It is in his action alert buy list. It is trading very, very cheaply. They are getting a lot of demand for their rigs. These stocks have been devastated and they have low debt. The balance sheet is in good shape relative to peers.