Why a 15% Yield on Blue Chip Stocks Worries Even Income Investors

A VistaShares Target 15 Berkshire Select Income ETF (NYSEARCA: OMAH) is marketing a headline 14.9% trailing yield, paid monthly, on a share price around $19. The fund aims to deliver this by holding many of the public companies tied to Berkshire Hathaway’s portfolio and adding a covered-call overlay. The key concern raised by the article is whether the distribution is supported by underlying dividends or relies heavily on options. It notes major holdings such as Coca-Cola (2.5% yield), Chevron (3.8%) and American Express (about 1%)—far below the fund’s target. That gap is filled by selling short-dated calls, but the article flags a reported 305% payout ratio, implying some returns of capital or option-premium-driven payments.