SPHD and DIVO sit between SCHD’s 3% and JEPI’s 8% yield, delivering monthly income with less distribution risk than aggressive options funds.
DIVO selectively writes covered calls on 34 quality dividend stocks, delivering a 6% yield while retaining more upside than full-index covered-call funds.
SPHD targets 50 S&P 500 stocks combining high yield and low volatility, delivering a 4.5% yield with shallower drawdowns that protect retirees spending from portfolios.
Don’t wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.
Not every retiree is going to need a 10% yield, and for those who are approaching or living in retirement, what matters most is a monthly check that shows up reliably every month. The same can be said for a portfolio that won’t crater in a rough quarter, and an income that comes from companies with real earnings rather than complex narratives most people don’t understand.
This is a different set of priorities than just chasing the highest headline number, and it calls for a different set of funds.
CL STOCK / Shutterstock.com
The Invesco S&P 500 High Dividend Low Volatility ETF ((NYSEARCA:SPHD)) and the Amplify CWP Enhanced Dividend Income ETF (NYSEARCA:DIVO) are two monthly payers built with exactly that profile in mind. Neither one of these funds is trying to be the best, highest-yielding in the room, but they are trying to be some of the most dependable.
How SPHD Builds Its Case Around Calm
SPHD starts with the S&P 500 and runs a two-factor screen: it selects the 50 stocks that combine the highest dividend yield with the lowest realized price volatility. The result is a portfolio that tilts away from the high-beta, growth-oriented names and toward sectors like utilities, consumer staples, and financials, as well as businesses that generate steady cash flows and experience smaller price swings than the broader market.
Don’t wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.
As of June 26, 2026, SPHD carries a 4.50% dividend yield and paid $2.33 per share over the trailing 12 months in monthly distributions. At $51.71 per share as of June 26, 2026, an investor holding 1,000 shares would collect roughly $2,330 annually.
The expense ratio is 0.30%, which is low for a factor-screened fund, and the payout ratio of 70.02% suggests the underlying companies are not stretching enough to maintain their dividends. Dividend growth of 40.50% over the measured period is notable, though retirees should note that the figure reflects a rebound from prior cuts rather than a straight-line increase.
Story Continues
The tradeoff with SPHD is well understood. By screening for low volatility, the fund tends to lag in strong bull markets when high-momentum growth names lead the charge. What it offers in return is a smoother ride and historically shallower drawdowns, which matters considerably more to a retiree spending from a portfolio than to someone still in accumulation mode.
How DIVO Adds a Covered-Call Layer on Top of Quality
DIVO takes a different route to similar income goals, in that the fund holds a concentrated portfolio of around 34 high-quality dividend-paying companies with strong earnings histories, then writes covered calls tactically on a portion of its positions to generate additional income on top of the underlying dividends.
As of June 26, 2026, DIVO carries a 6.47% dividend yield and paid $2.95 per share over the trailing 12 months. At $45.68 per share, 1,000 shares would generate roughly $2,950 annually. The expense ratio is 0.56%, reasonable for an actively managed strategy with an options component.
The fund’s total return of 16.38% over the past year, including dividends, and an average annual return of 12.41% since inception, speaks to how the quality-first equity selection has performed alongside the options income.
The covered-call overlay in DIVO is measured against funds like XYLD or RYLD, which write calls against the full index every month. Because DIVO writes calls selectively on individual positions rather than systematically across the whole book, it retains more upside participation when markets rise. The monthly distributions shift with market conditions, but the quality of the underlying holdings provides a more stable dividend floor than a pure options strategy would.
Where These Two Funds Fit in a Retirement Portfolio
Positioned against the broader income ETF landscape, SPHD and DIVO occupy a useful middle ground. The Schwab US Dividend Equity ETF sits below them at roughly 3.3%, prioritizing dividend growth over current income.
The JPMorgan Equity Premium Income ETF (NYSE:JEPI) sits above them at around 8.2%, generating higher current yield through a more aggressive options approach but with more distribution variability and capped upside.
SPHD and DIVO alike are the moderate lane, offering a higher income than a growth-oriented dividend fund, lower complexity, and lower drama than a full covered-call fund. For retirees who want a monthly cash flow without wondering whether their fund is going to cut its distribution in half the next time volatility spikes, that middle lane tends to be where the best sleep is found.
Don’t wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.
