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Investors seek 6% yield with options income ETFs and REITs but face tax and growth trade-offs.

Market News
30 Mar 2026
24/7 Wall Street
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Some investors prefer a 6% income strategy using options income ETFs and REITs to generate higher yields without picking individual stocks. Options income ETFs like JPMorgan Equity Premium ETF offer yields above 6% by selling covered calls, while REITs such as Realty Income provide steady dividends from real estate investments. However, these high-yield funds often underperform the S&P 500 over time and their distributions are taxed as ordinary income, potentially increasing tax burdens for retirees. Finding dividend stocks with yields above 6% that qualify for favorable tax rates remains challenging.

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