This 8.7% Payer Looks Like a Winner (But You Have to Get the Timing Right)

Covered-call funds give us something we demand at a time like this: outsized 8%+ payouts! And the last few months have shown us something else: These funds work --especially when you use them in a specific kind of market (hint: conditions just like those we're facing now). Covered-Call Funds "Translate" Option Gains Into 8%+ Dividends Even though the name sounds complicated, covered-call funds have a relatively straightforward setup behind them. They start by letting you hold a bundle of stocks, just like, say, an ETF would. In the case of the covered-call fund we'll talk about today, the Nuveen S&P 500 Dynamic Overwrite Fund (SPXX) , these are the companies in the S&P 500. So far, so good.