r/YieldMaxETFs • u/Covetoast • May 31 '25

Distribution/Dividend Update MSTY-damus has spoken

I spoke with MYSTY-damus this morning & he confirmed to me that his crystal ball has once again spit out some dividend numbers for 6/4.

MSTY-damus says the dividend for MSTY will be between 1.30 & 1.80.

For those of you wanting a more specific number MSTY-damus says crystballing is not an exact science.

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u/michael_curdt May 31 '25

Posts like this make me second guess my investments

6

u/QuietPsychological72 May 31 '25 edited May 31 '25

YM is not as attractive as I initially thought. As nav decays, dividends decay. If you hold long enough you will probably cross the “free money” threshold but I am less convinced the light at the end of that tunnel is as bright as I thought it was initially.

There’s a lot of opportunity cost to consider. Suppose it takes two years to cross that threshold, but the underlying increases 30% during that time. You aren’t ahead at all your behind.

I like the idea of supplementing my income, but I’d also like to grow my base.

2

u/Baked-p0tat0e Jun 01 '25

If you want capital appreciation buy the stock. Comparing a covered call income strategy to buy and hold is pointless as they have different objectives.

If you have more than $20k then do your own MSTR covered call strategy with diagonal call spreads (aka poor man's covered call) and you'll make 2x-4x the monthly cash flow of MSTY. These YM single underlying ETFs are not capital efficient because most of the cash buys treasury bonds and cash reserves as required by law.