This 8.1% Dividend Crushes SPY, Loves a Market Crash
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 12 2025
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Source: NASDAQ.COM
Market Volatility Comparison: The current market volatility in 2025 is driven by irrational panic rather than economic fundamentals, contrasting with the more severe conditions of 2022, where inflation and interest rates were rising. The recent GDP contraction was primarily due to increased imports, not a decrease in consumer spending.
Investment Strategy Recommendation: Investors are encouraged to consider the Nuveen S&P 500 Dynamic Overwrite Fund (SPXX), which offers an 8.1% dividend through an option-selling strategy, providing exposure to the S&P 500 while mitigating risk during volatile markets. However, it is advised to also look into other stock closed-end funds for long-term growth potential.
Analyst Views on SPXX
Wall Street analysts forecast SPXX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SPXX is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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Current: 18.070
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Current: 18.070
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About SPXX
Nuveen S&P 500 Dynamic Overwrite Fund (the Fund) is a diversified, closed-end management investment company. The Fund’s investment objective is to seek attractive total return with less volatility than the S&P 500 Index. Under normal circumstances, the Fund invests at least 80% of its assets in a diversified equity portfolio made up of securities consisting of S&P 500 Index that seeks to substantially replicate price movements of the S&P 500 Index and is designed to support the Fund’s option strategy. The Fund also invests in other investment companies, including exchange-traded funds (ETFs), that provide similar exposure to individual common stocks consistent with the Fund’s investment objective. It invests in various sectors, including aerospace and defense, beverages, biotechnology, capital markets, chemicals, communications equipment, diversified telecommunication services, entertainment, consumer finance and others. The Fund's investment adviser is Nuveen Fund Advisors, LLC.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
