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REDDIT

yield minus taxes on qualified (SCHD) vs. covered call (DIVO) - which produces more income?

R
Jan 7, 2026 · 20:07

I suck at taxes, and I suck at math, but I'm curious... a qualified dividend ETF (like SCHD) pays less yield, but is more tax friendly. A covered call ETF pays higher yield, but is less tax friendly. So which ETF is preferable in a taxable account? After taxes, which ETF produces more income? If the answer is the covered call ETF, then why are people always preaching for qualified dividends in a taxable account?