NEOS S&P 500 High Income ETF

SPYI

Market cap $10B

A 65 year old retiree sitting on $750,000 inside a Roth IRA can engineer roughly $42,000 of annual dividend income that escapes federal tax entirely.

WESTPORT, Conn.--(BUSINESS WIRE)--NEOS Investments, an asset management firm comprised of leaders and pioneers in the options-based ETF space, announces May monthly distribution amounts for their suite of ETFs that pursue monthly income and tax efficiency across core portfolio exposures. May 2026 Distribution Information, based on each ETFs Ex-Dividend Date:   Distribution Rate* Amount / Share (%) Amount / Share ($) Ex-Dividend Date 30-Day SEC Yield** Boosted Bitcoin High Income ETF (XBCI) 38.8.

A $100,000 portfolio throwing off $750 a month answers the retirement income question.

The NEOS S&P 500 High Income ETF offers more attractive valuation and better downside protection than the SPY SPDR S&P 500 ETF Trust in the case of a VIX surge. And I see greater odds for both scenarios under current economic and geopolitical conditions. SPYI's trailing 12-month yield stands at 11.73%, about 13% above its historical average and signaling a noticeable discount.

I have maintained a "Buy" rating on SPYI since I began coverage in December 2024, and it remains one of the best covered call funds in its class. SPYI directly indexes the S&P 500 and overlays actively managed FLEX options, avoiding the drag of synthetic exposure used by many competing income funds. The fund has grown NAV while paying a roughly 12% distribution rate, classified primarily as return of capital, which makes it tax-efficient for taxable accounts.

There are several different paths to retiring on dividends. However, they all have major drawbacks. I share an approach that I have honed over time that seeks to bring out the best of each strategy and minimize its deficiencies.

High monthly dividend yields are very attractive to investors who live off of passive income from dividend investments. However, not all of these investments are created equal, especially in the covered call arena. I compare GPIQ and QYLD to demonstrate this point.

The largest S&P 500 ETF yields a scant 1.06%. That confirms something some income investors may not want to be reminded of: The dividend yield on the benchmark domestic equity index hovers around multi-decade lows.

I coached my son's Little League baseball team for 10 seasons. There were often months-long gaps between when I would see the kids.

It is generally prudent to focus on stocks with single-digit yields and steady dividend growth. However, not all 10%+ yields are dangerous. I detail two double-digit yielding income machines that offer strong sustainability without blowing up your portfolio.