Dividend investors seeking inflation-adjusted income in today’s market face challenges due to high prices and lofty index valuations. Covered call funds like the JPMorgan Nasdaq Equity Premium ETF (JEPQ) have emerged as a source of consistent and solid income. JEPQ’s strategy of selling out-of-the-money options allows investors to participate in some upside potential while generating income. Since its inception in May 2022, JEPQ has delivered total returns of 23.53%, outperforming the S&P 500 (SPY) with returns of 23.25%. With volatility levels expected to rise throughout 2024 due to factors such as the presidential election, a slowing economy, and geopolitical tensions, JEPQ is well-positioned to offer solid income with acceptable risks. However, it’s important to note the fund’s limitations, particularly during market downturns or if volatility drops significantly.