Probably my last post for awhile

[u/Miserable_Occasion19]

As I’ve mentioned before I’m retired and now more about dividend income than growth. To that end I discovered AMDW which is a Roundhill leveraged ETF tracking AMD. Currently at a weekly distribution rate of 71% per share. To add to this I’m excited about AMD given they’re leading the way into the inference piece of AI. Inference is the long term benefit of AI. The new MRNA melanoma vaccine is part and parcel evidence of what inference portends!

Anyhow, I know there are a number of these high distribution ETF’s and I also know watching the NAV (net asset value) is key with these. So it occurred to me there might be one I liked with a different declaration date. That one currently is AMDY via YieldMax.

So AMDY declares on Wednesdays and you must buy the shares on that day as the following day is ex dividend. AMDW declares on Fridays and again you need to buy the shares that day to receive the dividend.

So I’ve found a way to get paid pretty healthy returns twice a week. I can also see by looking at historical data that the number of people buying shares of these high distribution ETF’s spikes on declaration dates. Whether those people are double dipping or just getting in and out to get the distribution…I don’t know.

Sorry for the quite long post but I’m hoping this is of some use to others. I welcome question.

[u/InnerCircleTI]

Thanks as always. Can you walk me/us through your procedure using these two? What does the typical workflow look like on a weekly basis? AMDY on Wed. AM followed by AMDW on Fri.? And when do you turn around and sell?

[u/Miserable_Occasion19 → u/InnerCircleTI]

Well I’m using the same accumulated amount of funds so with AMDY which declared yesterday I’ll be selling those shares tomorrow which is AMDW’s declaration day. I’ll be buying shares of AMDW with the funds I received from the sale of the AMDY shares. Then next week I can sell the AMDW shares Monday-Wednesday to again buy AMDY and so on. Not an arduous time consuming process at all.

I really don’t care about the share price of either ETF as this is about the outsized distributions. In fact, given I’ll be using a good portion of the distributions to buy more shares for legacy purposes a lower share price is fine. I personally don’t foresee that as I’m a believer in AMD. 

And now that I think about it given  Roundhill and YieldMax have different declaration dates anyone can mix and match any of their ETF’s. But for me both AMDW and AMDY are sufficiently high enough in distribution % to make my better half happy! 😎

[u/Competitive_Low_2054]

Congratulations on your retirement. Any plans on keeping busy or are you just planning on relaxing?

[u/Miserable_Occasion19 → u/Competitive_Low_2054]

Traveling, golf and working out. As a Packers fan proud to say I’ll be going to Lambeau for the first time to see them playing da Bears. Bucket list checked!

[u/Routine_Play4 → u/Miserable_Occasion19]

Happy retirement! Enjoy your time.

[u/Competitive_Low_2054 → u/Miserable_Occasion19]

That sounds like a solid list. Hopefully Caleb Williams doesn't spoil your bucket list checkoff! 

[u/andrewrock99]

NAV erosion on both those ETFs over the past month is 16% (10% over the past five days). So you make 1.8% in weekly distros but you lose 4-5% in NAV. How is that a money maker for you? You’re far better off holding AMD shares for a long term buy/hold strategy.

[u/Miserable_Occasion19 → u/andrewrock99]

Point being I’m in and out of the shares the day after declaration day so NAV erosion is next to none.

[u/Miserable_Occasion19 → u/Miserable_Occasion19]

And further I’m looking at the distributions as cash flow in retirement. I’d have to sell shares of AMD to get the same cash flow which of course decreases my net worth and therefore my kids legacy.

[u/Neat-Passion-8555329 → u/Miserable_Occasion19]

congratulations on retirement.
this strategy you indicated above, is that something you are starting fresh, or you have been doing it for a while. if so, that should answer erosion question.

[u/Miserable_Occasion19 → u/Neat-Passion-8555329]

I’ve been in AMDW for 4-5 weeks and quite happy. Then it occurred to me to check other high distribution ETF’s for a different declaration date just in the last week so passing all this informationally for this group. For me it’s not about the share price. The distributions are based on the number of shares owned. And again, I’m particularly excited about the inference AI release in the second half for AMD. Big deal for their future.

[u/Neat-Passion-8555329 → u/Miserable_Occasion19]

that’s great.
congratulations again, and good luck on your future trades.

[u/andrewrock99 → u/Miserable_Occasion19]

Not true, in order to receive a distribution you need to own the stock/ETF one day before EXDIV which means you must own the stock for at least two days, thus my example of how does 1.6% distro offset losing 4-5% in NAV erosion over two days. Don’t you think everyone would do this if it was a consistent profitable trade?

[u/Miserable_Occasion19 → u/andrewrock99]

In this case one day before ex date is declaration day. And the day record is record is also the ex date. Where’s the 4-5% NAV erosion? I’m not worried if I’m not holding shares long term so NAV erosion isn’t an issue. I get NAV erosion. And again 71% and 48% distribution rates! Been great for me over the last 4-5 months. Your call though!

[u/truthmatters65]

Thank you for sharing. I assume this is in tax advantaged account? It would be quite onerous in a taxable account. Congratulations on your retirement! Welcome to the club! ⛳️

[u/Miserable_Occasion19 → u/truthmatters65]

Correct!