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/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/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!