Montrose Global Monthly Dividend MSCI World UCITS ETF (MONTDIV, OMX Stockholm)
With X-day on October 31, the latest dividend is SEK 0.4509. Paydate is approximately 10 days into November.
The amount follows the promised 6 percent level very well. The fund’s strategy is to generate dividends at a level of 6 percent per year and in addition to that capture as much price potential as possible. Many such Covered Call funds strive to generate significantly higher dividends and then at the same time limit even more how much price increase they capture. This Montrose fund has a relatively reasonable and sound strategy regarding how they use the options. The 6 percent is calculated on the current price in the fund each month, after which the dividend will be a different amount from month to month. Over time, the stock market goes up and one should expect the dividend in this fund to rise with the stock market in the long term.
I own the fund and think it does its job well. Over time, I get a little lower volatility and a little lower downside while getting reliable dividends. However, the aforementioned appreciated features come at a price. There are also disadvantages and the main one is that you limit the upside potential with these Covered Calls. As I said, this fund uses the options in a fairly healthy/cautious way, whereupon it still captures a lot of upside. However, there is a limitation and you miss out on some price potential.
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