ETN Of The Month: SLVO

This month's choice may seem like a reeeeeeeeach for yield...and perhaps it is.  Having previously dipped my toes into the covered call strategy, I'm now diving in.  My investment thesis is as follows:

• The covered call strategy for monthly dividend income is a successful one, given that the underlying asset will support it.
• Silver is a time-tested store of value; a secondary one to gold, but perhaps relatively undervalued (a currently popular sentiment among a subset of commodity traders).
• Silver is also an essential raw material for technological purposes, which should see increasing demand in the future.

So far, so good.  Now the risk which will throw many red flags:  SLVO's current dividend yield is 35%.  This is clearly not sustainable.  My expectation is that the yield will bounce (down and) around, with a floor in the range of my other covered call investments of 9% to 12%, which is more than acceptable.  In the meantime, I will enjoy the 35% while it lasts.

Boilerplate time...

As a stretch goal: for dividend income purposes, I'd like this portfolio to eventually be as much as a 50/50 split between stocks and yield. As seen below, it is currently 54/46.

I am in no rush to flip into yield. I would rather let my winners run forever. However, if in any given month I see no stocks that present themselves as especially good buying opportunities, I have no reservations in simply adding to my bond, preferred stock, and/or index covered call ETFs. It is truly a month-to-month situation (as it has always been!).

For the foreseeable future, I want to track my Big Five Two every month, whether I buy them or not.

Amazon (AMZN)

• $1.73T market cap
• no dividend
• $419.1B revenue
• 44% revenue growth
• $73.3B cash
• $101.5B debt
• $67.2B operating cash flow
• $31.4B free cash flow

Microsoft (MSFT)

• $2.04T market cap
• 0.8% dividend yield
• $160.0B revenue
• 19% revenue growth
• $125.0B cash
• $81.3B debt
• $72.7B operating cash flow
• $37.8B free cash flow

Here's my current portfolio (buy and hold). As always, I believe in all of these stocks/ETFs - until I sell them.

Microsoft (MSFT) 13.85%

Amazon (AMZN) 12.89%

Global X U.S. Preferred ETF (PFFD) 12.33%

iShares Broad USD High Yield Corporate Bond ETF (USHY) 12.14%

Xtrackers USD High Yield Corporate Bond ETF (HYLB) 12.03%
Invesco NASDAQ 100 ETF (QQQM) 6.65%
Alphabet (GOOGL) 5.09%

Global X NASDAQ 100 Covered Call ETF (QYLD) 3.34%

Facebook (FB) 3.18%
Invesco NASDAQ Next Gen 100 ETF (QQQJ) 2.96%
Intuitive Surgical (ISRG) 2.65%

Global X Russell 2000 Covered Call ETF (RYLD) 2.28%

Global X S&P 500 Covered Call ETF (XYLD) 2.18%
UnitedHealth Group (UNH) 1.38%

Visa (V) 1.30%
Costco Wholesale (COST) 1.30%

Verizon (VZ) 1.22%
AT&T (T) 1.20%

ProShares UltraPro QQQ (TQQQ) 0.05%

Credit Suisse X-Links Silver Shares Covered Call ETN (SLVO) 0.04%

ProShares UltraPro Russell 2000 (URTY) 0.02%

ProShares UltraPro S&P 500 (UPRO) 0.02%