Nuveen NASDAQ 100 Dynamic Overwrite Fund

QQQX

Market cap $1.34B

By now, it's glaringly obvious: AI is replacing workers. And it's boosting corporate bottom lines as it does.

Retirees are the biggest income focused individual investor demographic, with Baby Boomer aged retirees cumulatively totalling over 73 million.

Sly and the Family Stone were a disruptive force in the music industry in the 1960s.

The Nuveen Nasdaq 100 Dynamic Overwrite Fund was founded in 2007 and is one of the oldest covered call funds, and has been a consistent wealth building tool since its inception.

The Nuveen NASDAQ 100 Dynamic Overwrite Fund is one of the earlier covered call closed end funds to have launched, having begun in 2007.

Nuveen NASDAQ 100 Dynamic Overwrite Fund offers high income (8.25% yield) and market-matching long-term returns by investing in NASDAQ 100 stocks and writing call options. The fund uses a covered call strategy on large-cap, growth-oriented stocks, limiting upside but reducing volatility and drawdowns. QQQX has a solid record of 18-plus years, providing its owners with high income and reasonable capital appreciation at the same time.

A market on a precipice.

Volatility is back! And we contrarians know what to do: Get ready to buy.

QQQX has outperformed the S&P 500 recently, aided by its tech-heavy focus and seeing the discount narrow, yet the fund still looks like an attractive value. The fund offers an 8.48% distribution yield, and that relies on capital gains to fund payouts—common for tech-focused option-writing funds. Switching from quarterly to monthly distributions could make QQQX more appealing to income investors, aligning it with newer ETF competitors.

For income investors, closed-end funds remain an attractive investment class that covers various asset classes and promises high distributions and reasonable total returns. Closed-end funds, or CEFs, are generally characterized by higher volatility and deeper drawdowns than the broader market. For these reasons, they are not suited for everyone. In this monthly series, we highlight five CEFs with solid track records that pay high distributions and offer "excess" discounts. We try to separate the wheat from the chaff using our filtering process to select just five CEFs every month from around 500 closed-end funds.