DIVO Dividend Calculator

About DIVO

DIVO — the Amplify CWP Enhanced Dividend Income ETF — is an actively managed dividend-and-options income fund issued by Amplify ETFs with Capital Wealth Planning (CWP) as the subadviser. Launched in December 2016, DIVO holds a concentrated portfolio of approximately twenty-five high-quality US large-cap dividend-paying stocks and overlays a tactical, actively managed covered-call writing program on selected positions within that basket. The strategy is explicitly hybrid: the equity sleeve looks like a quality-dividend large-cap portfolio (mature payers, often with multi-decade dividend-growth histories), and the options overlay layers a premium-harvesting income stream on top through selectively written covered calls on individual positions rather than mechanically writing calls on the whole basket or on a broad index. The result is a fund that produces a monthly distribution combining underlying dividend yield with selectively harvested option premium, at a yield level meaningfully below the mechanical covered-call ETFs (QYLD, XYLD) but above pure-dividend ETFs (SCHD, VYM).

DIVO uses an active selective covered-call overlay — not a mechanical one. This is the structural feature that distinguishes DIVO from the mechanical covered-call ETFs and from the actively managed broad-market covered-call ETFs. The subadviser (CWP) selects which individual positions within the twenty-five-stock basket to write calls on at any given time, chooses the strike price and expiration tenor of each option based on the manager's view of each name's near-term technical setup and the option-market premium environment, and rolls or closes positions on a discretionary basis rather than on a fixed monthly cycle. The covered-call coverage at any time is partial — typically only a subset of the twenty-five positions has active short calls, with the remainder held outright — and the strikes are typically written above the current price rather than at-the-money, which preserves more equity upside than an at-the-money write would. The premium yield generated by the overlay is therefore lower per dollar of equity than QYLD's mechanical at-the-money strategy would produce on the same basket, but the equity upside retained is correspondingly higher.

The structural consequence of DIVO's selective active overlay is that the fund's behavior in different market environments sits between pure-dividend ETFs and mechanical covered-call ETFs. In a strong bull market, DIVO's selectively written calls cap upside on the covered subset of positions but the uncovered positions and the above-strike portion of covered positions continue to participate in price appreciation — the fund captures meaningfully more upside than QYLD or XYLD would on the same basket, at the cost of a lower headline premium yield. In a flat or sideways market, the selective overlay collects premium on the covered positions without surrendering meaningful upside (since the basket isn't moving much anyway), and the dividend income from all twenty-five positions continues unchanged — the fund operates near its design point in this environment. In a bear market, the selective overlay provides a partial cushion on the covered positions (the call premiums offset some of the price decline), the uncovered positions decline in line with the equity market, and the underlying dividend stream from the twenty-five names provides some baseline income through the drawdown.

How DIVO pays distributions

DIVO distributes monthly. The ex-dividend date typically falls in the second or third week of each calendar month, with the pay date following a few business days later. The per-share cash amount each month is a blend of the underlying dividend income collected from the twenty-five-stock equity basket (smoothed across the year by the fund's monthly distribution cadence) and the option premium collected from the selective covered-call overlay during the prior cycle. The blend ratio is not fixed — in periods of high implied volatility on the underlying names, the option-premium portion of the distribution grows; in periods of low implied volatility, the underlying-dividend portion dominates. Over a calendar year, the aggregate distribution averages out to a mid-single-digit to high-single-digit yield on NAV, depending on the volatility regime and the manager's coverage decisions across the year.

DIVO's distribution composition is a mix of qualified dividends (from the underlying equity basket, where the named US large-caps meet the standard holding-period rules), ordinary income (from option-premium-related short-term gains and option-premium accruals where the option lifecycle does not produce qualified-dividend treatment), and potentially small components of return of capital depending on the fund's realized gains and losses across the year. The year-end 1099-DIV reports the exact split, and the relative proportions can shift meaningfully year to year depending on how active the option overlay has been and on the fund's realized capital gains and losses inside the wrapper. Holders in taxable accounts should expect a mixed-character distribution that is partially favorable (the qualified-dividend portion) and partially less favorable (the ordinary-income and ROC portions) relative to a pure-dividend ETF. Tax-advantaged accounts (IRA, Roth IRA, 401(k)) shelter the entire distribution and the character split becomes irrelevant inside the wrapper.

The expense ratio on DIVO is moderate-to-high among dividend-income ETFs — higher than the lowest-cost passive dividend funds (SCHD, VYM, HDV) and roughly comparable to other actively managed dividend-and-options funds. The compounding drag over a multi-decade horizon is meaningful at the long end of a DCA-plus-DRIP framework but is partially offset by the active manager's ability to adjust both the equity basket and the overlay strategy as market conditions change. The fund has navigated multiple market regimes since its 2016 inception (the 2018 volatility window, the 2020 COVID demand shock, the 2022 rate-shock drawdown, and the 2023-24 recovery) with the distribution stream continuing through each window, though the per-share amount has varied with the volatility environment and the manager's coverage decisions.

Who DIVO suits

DIVO suits investors who want a hybrid dividend-and-option-income product, prefer monthly cash flow, value the active manager's discretion in both the equity basket selection and the option-overlay execution, and accept the moderate-to-high expense ratio as the cost of active management. The fund is structurally between SCHD (pure equity dividends, no overlay) and JEPI/QYLD (covered-call dominant) on the income-versus-upside trade-off — the selective active overlay produces less option-premium income per dollar than the more aggressive covered-call funds but retains more equity upside in bull markets than they do. Investors who want pure dividend exposure with full upside participation should weight SCHD or VYM more; investors who want maximum option-premium-derived income at the cost of upside should weight QYLD or XYLD more; investors who want the hybrid approach with active discretion should weight DIVO.

DIVO versus JEPI versus QYLD is the comparison that maps the active-versus-mechanical covered-call ETF universe. QYLD is the mechanical reference point — write at-the-money one-month index calls on the full Nasdaq-100 basket every month, collect maximum mechanical premium, distribute, and accept the corresponding upside cap. JEPI is the diversified actively managed alternative — hold a separately managed US large-cap equity basket (not a full index) and write covered calls through equity-linked notes with strike selection and notional sizing left to the JPMorgan portfolio team, typically writing below-the-money or partial-coverage positions designed to retain more equity upside than QYLD's mechanical strategy. DIVO is the selective active alternative — hold a concentrated twenty-five-stock quality-dividend equity basket and write covered calls on selected individual positions at the CWP subadviser's discretion, with above-the-strike writes and partial coverage that retain meaningfully more equity upside than either QYLD or JEPI's broader overlays. The headline yield ranking typically runs QYLD highest, JEPI middle, DIVO lowest; the equity-upside-retention ranking runs in the opposite order. Investors choose among the three based on where they want to sit on the yield-versus-upside trade-off and on how much weight they place on active manager discretion versus mechanical rule transparency.

DIVO is held in both taxable and tax-advantaged accounts. In taxable accounts the mixed-character distribution produces a more complex tax outcome than a pure-dividend ETF would; in tax-advantaged accounts the wrapper neutralizes the character question entirely. The dividend calculator on this page can model DIVO using the current forward yield and a modest annual DGR consistent with the fund's historical pattern; given the actively managed and option-overlay-dependent nature of the distribution, a conservative DGR assumption (zero or low single digits) is more defensible than an aggressive one, and investors planning around a long horizon should run multiple scenarios to bracket the realistic range.