Compound Your Wealth With The Dividend Wheel Strategy

Jun. 05, 2025 9:57 AM ET, , , , , , , , , , , 33 Comments
Cain Lee
5.95K Followers
(13min)

Summary

  • I use high-yield option ETFs to generate frequent, substantial income, which I manually reinvest into undervalued growth stocks for compounding returns.
  • My Dividend Wheel strategy allows for flexible allocation of distributions, helping build growth positions without additional capital, and can be scaled to any income level.
  • Strategic use of margin can amplify income, but I stress a conservative approach and caution against over-leverage or using margin without a solid financial foundation.
  • This approach carries elevated risk and is best for experienced investors with diversified portfolios; option ETFs often underperform indices and can erode capital over time.

Software upgrade concept. The hand connects the mechanism with a gear.

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Overview

I've covered a plethora of different high-yielding assets over the last few months and I've received some questions around the actual utility of these funds. When I say 'high yield', I am not talking about the traditional

This article was written by

5.95K Followers
Financial analyst by day and a seasoned investor by passion, I've been involved in the world of investing for over 15 years and honed my skills in analyzing lucrative opportunities within the market.I specialize in uncovering high quality dividend stocks and other assets that offer potential for long term-growth that pack a serious punch for bill-paying potential. I use myself as an example that with a solid base of classic dividend growth stocks, sprinkling in some Business Development Companies, REITs, and Closed End Funds can be a highly efficient way to boost your investment income while still capturing a total return that follows traditional index funds. I create a hybrid system between growth and income and manage to still capture a total return that is on par with the S&P.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of ASML, QQQM, QDTE, XDTE, FEPI, PEP, TGT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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