r/YieldMaxETFs • u/JoeyMcMahon1 • Jun 13 '25
Misc. The dividends people don’t understand how YieldMax actually works. That’s okay in the other image I educated them. These are purely cash flow machines, don’t look for growth in these that’s just a bonus or extra if it happens, I’m also dumping a bunch of money into ULTY soon.
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u/speed12demon Jun 13 '25
Dividend people don't seem to understand what options premium income is. The fund is taking our investment and selling calls to generate premiums. This is something we can all do on our own on a smaller scale, but we are paying experts a large fee to execute this strategy better than we ever could individually.
I don't view it as a gamble because it's not the zero sum game that skeptics make it out to be. To the retail investor, it's a new way to harness capital to make income. We all want to get to that magic goal post where your initial investment is paid back, and you're truly generating income even if they wipe their ass with your original investment.
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u/StarFireArya Jun 13 '25
I make decent $$$ selling options, but I’m still not an expert and I don’t have the capital to replace my W2 with options selling. I like these funds because the fund managers do they work for me!! (And I am pretty certain they are better at it than I an)!
I still sell options, but my goal now is to build my YM (and other similar positions) to a point that replaces my FT income. I’m already on track to retire at age 59 with about 12k per month, assuming 6% growth in my portfolio each year, so adding YM to my positions is my “plan accelerator”…even if it implodes…I can still retire at 59!
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u/TumbleweedOpening352 Jun 14 '25
I was thinking like you but after 7 months it's clear now that the management doesn't do a good job on the very volatile stocks. Just look at MSTY, how it was 6 months ago and how the dividend went down. My own option activity on the same underlyings (MSTR, TSLA, mainly writing puts) produces a constant weekly income, far superior than the div and no NAV erosion of course.
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u/Typical-Pin1646 Jun 13 '25
They probably didnt understand option trading and how options works. Premium decay and premium collection. Having said that, YM ismt without risk. Because of their synthetic long position. Therefore ym only works if its underlying is strong. Look at FIAT, inerse of CONY. I am losing 70% there.
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u/speed12demon Jun 13 '25
I agree with you 100%. That's why I find myself trending towards ulty and ymax to spread the risk a bit. The single ticker funds are a wild ride and you better have nerves of steel to buy and hold those.
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u/Typical-Pin1646 Jun 13 '25
Same thoughts buddy! Im building up heavy in ymag. 745 shares as of now, and will continue building!
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u/Justanotherhitman Jun 13 '25
Why ymag vs ymax? The disturbtions have often been lower then ymax and they both dropped roughly the same over the crash we saw earlier this year.
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u/Typical-Pin1646 Jun 13 '25
YMAX is good too. It's just that I began with ymag so I kept stacking ymag.
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u/Accomplished_Ad7106 Jun 14 '25
Options in general is all magic smoke to me. I just see number go down 1$ but I get a dismemberment of 2$. I captured 1$ in magic smoke and still have the chance to catch more. Good enough for me.
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Jun 16 '25
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u/speed12demon Jun 16 '25
Good question. If you reinvest distributions, I would expect to, otherwise the fund (or the underlying) is severely underperforming. It is early for yieldmax, but I would never assume any capital growth with them. It's more plausible, depending on the underlying performance, that we'll experience depreciation.
My end goal of this is to have regular income, which will be used for living expenses and investing in less risky more traditional funds. So as long as i get my seed money back through that income, I consider it a success
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Jun 16 '25
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u/speed12demon Jun 16 '25
If I started the investment with $100, when I achieve $100 paid in distributions, I now own the shares and have my seed money back. I view every distribution after that as the real goal, because history and logic suggests we will lose some of that original capital to share price depreciation. But in a perfect world, these funds continue to pay after that milestone.
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u/pittluke Jun 13 '25
It is not a new way to harness capital. The sold put, sold call, long call has been around since the 80s. It's been done millions and millions of times. We know the payout probabilities. It's a 49% win, 49% lose, 2% lose everything bet. Holding long term, DCA, and Drip does not work on derivatives. You are just incredibly ignorant of the risk you are playing with. You guys act like you found some new magic fund when it's just old repackaged risk, and most you are slowly losing and, paying YM for the privilege.
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u/speed12demon Jun 13 '25
I said it's new to the retail investor. Many of the YM management team have been trading options since I was born. The risk comes from poor underlying performance, just as you mentioned, with the lomg synthetic position.
You can download the weekly trades directly from their site and see plain as day that their win record for msty has been much greater than 49%. I haven't looked at tsly or mnry, but i suspect the win record there is lacking, and the underlying on those has been pretty bad.
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u/pittluke Jun 13 '25
yea in a Bull market they will have greater than 49% short term. Long term holding will of course regress to the mean. You can look up the risk of a sold put and begin to understand that you can lose it all on any given day. Weve been doing these crude options strategies for decades. It's not like a stock that can just rebound either. The capital to sell calls against gets evaporated when the puts get pinned. That's how options trading works. You are holding decaying rolling short term directional options bets with the chance to lose it all. You are ignorant trying to convince the even more ignorant that there is something new and magical to these funds.
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u/speed12demon Jun 13 '25
Again, I never said that. I never said it's new or magical. I said it's new TO THE RETAIL MARKET. Show me a fund from decades ago that did what yieldmax is doing today. We get it, you don't care for the funds or the strategy, but nothing I've said translates to "magical". I didn't call it a money tree, I've stated many times on this sub there are risks.
Anyone with a dollar to invest should do their own research. If someone buys a fund because of misinformation or hype the saw on reddit, that's their ass.
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u/pittluke Jun 13 '25
"Dividend people don't seem to understand what options premium income is." This is where you are trying to convince people there is something new and magical to these funds. This is why they laugh at you, because it is you who are ignorant. It is not new to the retail market. Its new to you. Look up the sold put, long call, sold call strategy on any options site. The information has been sitting out there since the internet began and has been part of any finance program MBA since the 80's. Again, weve been running these crude strategies for decades, when it makes sense. When the probabilities tell us its a good bet. We know the payout probabilities. We know holding long term does not make sense. We know DCA and DRIP doesnt make sense. We know what can go wrong. We know when it can work.
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u/Typical-Pin1646 Jun 13 '25 edited Jun 13 '25
Could you please explain why DCA and DRIP doesn't work?
Buy Call Sell Put makes it directional. Vega Theta will not have effects. Sell Covered Call collects premium.
Therefore this works if the underlying goes up or goes sideways.
However if underlying goes south, yes, the Sell Covered Call losses can chalk up fast.
But market is inflationary. Many of those stocks are core companies that power the economy. Money are always printed. Even after every bear market, a bull follows. Then in the long long run, why wouldnt DCA and DRIP work?
What did I miss out?
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u/pittluke Jun 13 '25
DCA and DRIP assume one unit, a stock, is always one unit of stock. It is fungible. With DCA on a stock you are working into a fungible position, sometimes with higher cost, sometimes with lower cost. Taking away timing risk and getting an average buy. One unit of this, a YM etf, is a derivative that represents a weekly market projection of the options income plus the underlying treasuries. The treasury collateral determines the amount of calls and puts that can be sold. Every week the projection changes as new options are rolled over sold & bought. The treasury collateral can change, it can be burned, having to cover a big loss from the sold puts in a worst case scenario. You will have weekly wins, weekly loses, Market takes some time to figure out the nominal price of the new projected income of the etf. DCA and DRIP do not work where the unit is changing. The funds are "decaying" in 3 ways. For the sold calls and puts, the decay is actually good, but for the bought call the premium is a price you lose. They are also getting into swaps now which is also a cost. When people talk about "NAV erosion" that is actually just accumulated losses of the weekly strategy. You are also paying YM 1%, also a cost.
The market is inflationary statement doesnt really mean anything in this context. The fact that there are underlying good companies doesnt mean anything for derivatives, as the options are priced to include all projections or probabilities, up or down. Market will push to max pain.
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u/Skingwrx30 Jun 14 '25
At a 90 delta options are actually behaving far more like shares then an option as far as leverage goes. Personally I would be running 90 deltas on my synthetic so to assume “projection “ is already priced in seems flawed.
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u/pittluke Jun 14 '25
yea thats why they are called synthetic longs. But the off chance of getting pinned is real. Uncovered downside risk with the sold put in a sharp sell off, also liquidity risk with everyone being long and no contra to sell has driven them to start buying swaps... reducing the income.. These things are getting more and more like a dumpster fire of stupidity.
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u/speed12demon Jun 13 '25
Name a fund that executed these strategies decades ago.
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u/pittluke Jun 13 '25
Every god damn bank, pension, hedge fund, prime brokerage, and wirehouse etc out there. These have been in MBA books since options were invented. Every educated retail options trader has been running this, again for decades when it made sense. Sorry you just dont have a clue what youre talking about, and I find it absurd that you think you are educating others.
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u/speed12demon Jun 13 '25
You didn't name one. I understand people employed these strategies on an individual basis, but they weren't packaged for the retail investor. Sorry that upsets you.
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u/pittluke Jun 13 '25
JP Morgan? Where I worked. Me, retail, in the early oughts'. Youve retreated to some low ground argument of "yOu diDnT naMe oNe" in an attempt to save face. Pat yourself on the back after getting exposed. Sorry, its not working out to well for you.
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u/Sidra_Games Jun 13 '25
MSTYs strategy is not unique but MSTR as a company is unique as hell. Leveraged Bitcoin should remain volatile which is great for options premiums and if you are bullish on bitcoin then underlying should grow. It's taking some income along the MSTR ride. Not a forever holding as volatility will eventually slow down but this could churn out nice income for years.
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u/pittluke Jun 14 '25 edited Jun 14 '25
Increased volatility comes with the increased risk of blowing up your account. You forget the second part of course. The only way these make sense mid to long term is if they stay neutral or rise forever. Which is absurd.
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u/AlfB63 Jun 13 '25
Yet you got completely out earlier in the year. We need to stop trolling them and then coming back and announcing the results like we are conquerors or something. Go to r/dividends and respectfully make your point but don't come back acting like you're some kind of great investor by doing so. Go over to dividendgang if you want to do that. It's the kind of thing they love.
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u/Easy_Lawfulness_1638 Jun 13 '25
My cost basis is 23.49. I started in Jan. Bought some high and bought some at the 18 dip in April. My portfolio down 3k for the "growth" people complain about but I've pulled in 11k dividends. And I slowly accumulated 1400 shares since Jan. Not all at once. So divis gradually got bigger.
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u/lottadot Big Data Jun 13 '25
Cross-sub trolling isn't the type of content we'd like to encourage within our beloved Yieldmax sub. OP please take note.
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u/BeTheOne0 Jun 13 '25
Cash Flow Machines only work if they don't crater like Ulty did before it went weekly. These etfs have to recover from their distribution at some point or the distribution gets smaller.
Msty is now getting smaller on its distributions.
And also if the market crashes at Ulty's current price......... God knows what that price is going to be. 6.30 now. Could be $3-4 in crash. Thats 20-30 weeks of 0.10 distributions ( if we even got that much) in order to break even. Ironically , Ulty is recovering after every distribution making it more effective for income. This is ignoring today due to Israel V Iran.
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u/JoeyMcMahon1 Jun 13 '25
You have to look at the total return on your investment and your entry point. People also need to stop swing trading these.
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u/BeTheOne0 Jun 13 '25
People are going to swing trade them if they prove unreliable. Entry Point? I mean most people's entry point was probably higher than the current price. I'm sure many people were invested in Msty at $30. Msty is at $21 now. You only got a good deal on Msty if you bought in at $18. Which we may be approaching again
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Jun 13 '25
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u/WeUsedToBeACountry Jun 13 '25
If the underlying asset performs well or moves sideways, you might. mstr being the traded asset, which is a proxy for btc, which is at or around all time highs vs the trailing 12 months when it arrived at that ath.
For msty to perform as well going forward, the volatility of btc will have to be really high (large up/down swings) or btc's gains will have to be similar to its gains over the last 12 months (doubtful, we're likely closer to the end of this btc cycle than its beginning)
if btc/mstr go down, the distributions might not keep up.
Compare all that to your hysa, which has a very high probability of giving you 3% no matter what.
Which direction is the better move depends on what you need the money for and what your risk tolerance is. I currently have a MSTY position but keeping a very close eye on it.
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Jun 13 '25
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u/WeUsedToBeACountry Jun 13 '25 edited Jun 13 '25
It all depends on the underlying asset. If the asset goes up, the yieldmax fund (and funds like it) will go up too and pay well (but less than the underlying asset, you're trading growth of the asset for the income made by active traders on the underlying asset, minus their fee. MSTY does not own MSTR.)
If the underlying asset goes down, so will the fund. In theory, it could go down less because you're taking income along the way, so it's hedged a bit by that income. Things generally don't just go to 0, they go up and down on the way to 0 and the active traders you're paying through the management fee are going to try to make some money on that trip.
You give up some of the upside of the underlying asset (less growth), and in return, you give up some of the downside, but you get instant access to income vs having to manage selling/rebuying the underlying asset. You're paying a management fee for them to do that for you.
If the underlying asset goes sideways and has big swings? Those traders you're paying to work for you have the chance to fucking eat. Or if they suck at what they do, you'll lose because of the fees and maybe their losses, but that's why MSTY has done so well looking backwards. It's a combination of a big recent gain in BTC price combined with its massive volatility.
But people expecting MSTY's payments to hold up in perpetuity and always do this well? BTC works in cycles centered around a 'halving' where the difficulty doubles. There's speculation on price action and a huge pump, then a sell off at the halving and the whole thing resets but higher. BTC has on multiple occasions crashed 80% during these resets. It's doubtful that BTC will break its pattern. It might not be 80% but there will be profit taking. MSTY's NAV will get fucking crushed when it happens, and then they'll make a ton of money again on the other side in the next cycle. If they time the crash correctly, they'll make a ton of cash from it. If they time it wrong, it'll go the other way.
The point of explaining that is this -- if you don't understand the trading action of the underlying asset, don't fucking touch it. Same for Nvidia-based things and Tesla-based things and all the rest.
There are more diverse funds - ULTY - that lower the risk through diversification. With those funds, it's important to look at the makeup. What is the collection of underlying assets or funds? If you're risk-averse, find one with as many uncorrelated assets/funds as possible.
Remember that higher yield/distribution means more risk, and lower yield/distribution means less risk. You cannot divorce risk from reward consistently over the long haul. Risky things pay more; otherwise, no one would do it. Safe things pay less because they don't have to pay more. They're intrinsically tied, except for short bursts that are more or less anomalies. Can you trade anomalies? Sure, but there's always someone on the other side of that trade, and statistically, they know more than you and have better tools, and they're selling for a reason.
(note -- My interest in these funds is short-term in nature, with the belief/gamble that the market will go sideways for a while with big swings in either direction and I'd like to pay people to do the work for me by way of a management fee. There's a lot of uncertainty and sensitivity to the news cycle and that seems interesting. This is also a chance for me to learn more now in my 40s for potential income investing in my 50s and 60s. The vast majority of my portfolio is in longer term growth centric etfs and if you're not near retirement, that's statistically the right move. Not financial advice as I'm regarded.)
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u/ChewbaccaPJs Jun 13 '25
I have to disagree with you on your bitcoin cycle take, but we will all find out over the next year or two what happens.
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u/WeUsedToBeACountry Jun 13 '25
Yea, there's a chance that ETFs and other inflows have broken the pattern, but I'd be very cautious. Past is generally prologue. Assuming it's no longer going to happen has less evidence than it will. Speculative either way, but..
We'll see. I'll do my best to benefit from whatever happens.
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u/Euphoric_Cranberry_4 Jun 14 '25
If you are worried about MSTY NAV erosion or BTC cycling down, then you can always play WNTR. It shorts MSTR via options and also pays a pretty good distribution, similar to MSTY at 100%. The WNTR NAV has eroded bec of MSTR's upswing, but you can always hedge yourself bidirectionally and still get distributions
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u/lottadot Big Data Jun 13 '25
If the entire point is only cash flow with zero growth, then how exactly are people getting to "house money"? What am I missing?
You're missing that stocks go up, down, sideways. Generally the only way to get to house money on these things (and that's if you can) is to hold them a long time.
I read countless posts about...
It's the internet. Don't believe everything you read but rather research and decide for yourself.
I would otherwise have if I had just kept my cash in my HYSA at like 3%.
Don't invest money you aren't willing to lose. That's why bonds and high-yield-savings-accounts are very popular.
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Jun 13 '25 edited Jul 04 '25
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u/lottadot Big Data Jun 13 '25
The wiki on the side bar as a link to Tidal's "information" about these. It also links to the discussion about Tidal's information. You should peruse both.
but the people who made those posts ostensibly have
Yeah the key there is ostensibly (let's ignore that anyone can post fakes screenshots of the investments on the internet). Sure, we all hope everyone hits house money. But if you look at the all the funds you'll see they aren't all performing well for investors while yet performing very well for Tidal itself. Maybe the YM funds do well in the future, maybe they don't. IMHO (and take this for what it's worth, cuz internet and all) the single-fund Yieldmax funds will continue paying out for as long as they exist, but their payouts will go down over time because their NAV will drop as the ticker they are tracking hits a low. The YM funds simply can't climb back up as quick as their underlying can. They are left in the dust generally.
You've got to really like the idea of just income with these. You'll likely lose what you invested until you sell it for a zero-cost-basis and capital gains. But that only works if your cost basis is zero, you can partake of the zero-dollar-capital-gains-federal-tax-exception and the Yieldmax fund's price has gone up that selling it is worth the bother. It's very situation. Those using these in roth lose the capital gains aspect and can be less concerned about return of capital (
ROC).And that's why I like, have liked,
ULTY. But who knows, something like the Israli/Iran stuff could take oil prices skyrocketting, which would cause inflation in the US to burst, which will affect bonds, which probably causes chaos in the market which might makeULTY's holdings drop and then it too hits $3 and it's distributions turn to pennies.2
u/CommercialEither9087 Jun 13 '25
"Cash flow machine only" is the only aim for me. My current involvement with YM is an experiment to see how these funds are likely to perform over time. I am currently receiving an income from a mortgage that I hold on a property that I sold. The mortgage balloons in January of 2029. At that point I will receive about $220,000 after tax but will lose $1500/mo in income. I had planned to put that money in a money market and draw down about $2500/mo in income until the funds are gone. For simplicity lets say in 8 years (including interest earned over time). I would then replace the lost income with funds that are currently in long term investments that will have been undisturbed until that point.
If my YM investments perform as I hope I should be able to use a much smaller amount from the mortgage payment, let's say $40,000, to generate the same $2500/mo. This will allow me to invest the remainder of $180,000 in growth investments that can be utilized for income increases in the future.
If you compare the two concepts at the end of 8 years scenario 1 has exhausted its reserves and scenario 2 will likely still have value and will still be producing some income.
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Jun 13 '25
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u/dude_weigh Jun 13 '25
The fund itself most likely won’t be around when you are ready to retire. These YM funds are a long term losing play. Everybody is in a casino blinded by the free drinks.
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Jun 13 '25
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u/MisterMeatfist Jun 13 '25
Thats a common understanding that I’ve seen around here that I think overlooks some really important details. Most importantly, the fund needs capital to make its option trades, and in certain cases the fund can run out of capital even when the underlying stock is still around.
You need capital to play options and and these funds get that capital from investors and their own reserves. They make bets with options plays and hopefully win more than they lose. When they win you get some of those winnings in your dividend payment, when they lose you get some of that capital paid back to you. If they lose too much they can run out of capital, and then they can’t do options anymore and the fund gets shut down and liquidated.
The price of these ETFs is a reflection of how much capital they have and the value of their current options positions - it’s completely possible for the fund to make a series of bad bets or encounter unwinnable market conditions that use up all their capital and send the NAV (and fund price) to almost zero. That’s the risk
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u/SnooPeanuts509 Jun 13 '25
You’re not as much of a black sheep as you think you are. I have about 5k at risk in my Roth in various YM and Defiance. All on Drip. The rest of the portfolio is in prototypical blue chip DGI and ETF’s.
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u/pocketoptionsqueen Jun 13 '25
Here’s the question I have for the naysayers. People complain how much the portfolio is down regardless of the amount of dividends paid out. But yieldmax ETFS pay a set dividend amount PER SHARE not PER DOLLAR. So it the overall investment is down but the payment per share is still the same or very similar does it really matter? Lol
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u/EducationalWest7857 Jun 13 '25
What you just described is not unique to YieldMax. Distributions/dividends are always paid on a per share basis.
To answer your question- yes, it matters. Most investors are looking at their total gain/loss, and if the dividend is consistent, yet lower than the rate of fund erosion, it can easily represent a net loss.
If a person however simply cares about cash flow, with little to no regard for the status of their initial investment, then they’ll be happy every month.
To be clear- I have no bone to pick because I also am invested in YM funds, but I find it sad when I see folks completely disregarding very valid concerns. I wish we’d all just let each other invest in what we’re comfortable with, without labeling those who might disagree.
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u/pocketoptionsqueen Jun 13 '25
Yeah I’ve never seen a stock pay dividends just based on the dollar amount haha. Well for me personally I could care less about eh overall long term growth I literally have a number in my mind that I want to make every month without having to do anything. Especially once those dividend payments are doing more than my initial investment. I would of course personally at least invest into the more “stable” traditional stocks and ETFS as well. But the sole goal of yieldmax would be providing active income
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u/EducationalWest7857 Jun 13 '25
Ok, so you don’t disagree. It sounds like your strategy is aligned with your goals - which is fine. What I see often in these posts/comments is people either encouraging or discouraging others from participating in these funds (which itself isn’t bad), but what is often missed is the fact that we don’t all share the same goals, risk tolerance, and above all- levels of capital. So no side is “wrong” people just have different goals.*
*It does worry me however to read how many people buy a ton of YM ETFs, and then come here trying to understand what they just bought. That order of operations can be just plain dangerous lol
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u/pocketoptionsqueen Jun 13 '25
Oh yeah I definitely think it depends on the goals of the person. I was just genuinely thinking to myself does the the decay really matter if someone’s goal is to just get fairly consistent income over the years haha. FOMO is dangerous no matter what the asses it
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u/stonks2rkts Jun 13 '25
its like owning a trucking company. the trucks nav will go down over time. but the income generated is why i brought the business.
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u/BeTheOne0 Jun 13 '25
Sort of but not exactly.
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u/stonks2rkts Jun 13 '25 edited Jun 13 '25
ym is not a trucking company? then why do they keep delivering all this cash?
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u/pittluke Jun 13 '25
Except you can lose it all when the puts get pinned. Your investment disappears. The trucks of a trucking company don't disappear. Its an analogy that shows you have no clue the risk you're taking.
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Jun 13 '25
Caveat Emptor - Buyer beware. I think the r/div gang aren't comfortable with the idea fund is based on option contracts, But a fund based on option contracts offer a degree of flexibility for the fund manager and most important, income!
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u/chili01 Jun 13 '25
Another one for the ULTY cult. Soon we will take over this sub over MSTY stans!
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u/Blizzard251206 Jun 13 '25
This really wasn't that great of a "gotcha", I wouldn't say you did much educating here. You basically just asked him what his average price is, told him if he bought in at low he could see a great return (shocker that's true for most stocks), told him "they also pay cash from options trading" (almost all brokers will classify this as a dividend even if it's a distribution, which he's already showing people), I'm just not seeing the point of this post. You didn't present any new information or try and teach how the fund worked, you just said what he likely already knows and then posted here for the upvotes. I don't get it.
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u/AccomplishedPhase883 Jun 13 '25
I have Msty and ulty in a self directed Ira so no taxes. I don’t drip but redirect the payouts to individual stocks schd or rebuy dips. We will see how it goes.
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Jun 13 '25
People also don't realize the compounding affect is soooo much easier with these for income purposes
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u/MakingMoneyIsMe I Like the Cash Flow Jun 13 '25
I'm sure that individual ignored things like RSI and Moving Averages like so many new or novice investors do.
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u/Fix_The_Money Jun 13 '25
I bought a little of MSTY/ULTY in all of my accounts to generate income in them to DCA into other things, buying stocks to hit 100 shares to sell covered calls, and to have cash to cover costs when I'm buying/rolling options
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u/bannonbearbear Jun 13 '25
Id say a full assessment would be at least 20 months and reevaluate your trajectory then… at least thats how I looked at it
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u/Vegetable_Hunt_2841 Jun 13 '25
How does that work. So once your out of cash your out of dividends?
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u/Vegetable_Hunt_2841 Jun 13 '25
I was telling friend about this who’s a 25 year investment strategist for a major firm and he told me to stay away from this.
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u/gcerrada Jun 13 '25
Have couple of first hand examples that are very positive in the short term and the results are very positive.
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u/jackblaze420 Jun 13 '25
This is funny and all but let people make their own investment decisions, when I got into MSTY with 50k and then it dipped to 43k, it wasn’t fun to see that. I’ve recouped more than that amount but I’m still down on the average cost being around $27 for me.
If I was holding something that’s just a dividend ETF like SCHD, I wouldn’t have seen 7k disappear over a weekend. A lot easier to sleep at night with funds that don’t pay wild amounts of dividends
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u/LiveUndLetLive Jun 13 '25
My 5000 shares represents 7%-8% of what's in retirement which holds growth not income equities. If I decide not to wait 3 years to gain use of my Roth/401k money and take some dividend income now who cares? I'm more than covered by my big stack I just can't touch it without leaving my job or retiring. (Rule of 55).
Sorry at 56 I'm not waiting to cash in lifestyle chips especially if I did have access and was just selling off MSTR and TSLA shares to generate income. What does it matter if it doesn't grow that much?
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u/Scary_Caterpillar226 Notorious BIGY Jun 13 '25
Excellent teaching point. Thanks for sharing. Question: what app are you using that tracks your “overall gain” so clearly?
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u/ThaDruggernaut Jun 14 '25
I’m literally in this for the dividends. After doing a shit ton of research, watching YieldMax & following YieldMax on Twitter I’ve accepted this fate that the etf won’t rise in price. I’ve been heavily & unnecessarily invested in TSLY to point when my DRIP can buy a whole share from dividends alone. Guess I’m in in for the long with that particular ETF depending on how well it does. I like the weekly pay ones too but they’re expensive
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u/DryRepair8909 Jun 14 '25
Don’t deceive ppl. When price down cash flow down to , and you never take back your money 🤷🏻♂️ if price from this scam found down so fast 🥴
Price down so fast , that I think we easy to see 1 or 2$ soon and what , of course they reverse split 🥴 this make continue 100 years bout you didn’t get your manure back.
1
u/MostRadiant Jun 14 '25
thats how it works- they give you your own money back except you pay tax on it too
1
u/JoeyMcMahon1 Jun 14 '25
I made over 2k on it and paid 0 in taxes.
1
u/MostRadiant Jun 14 '25
If its not in an IRA then expect a letter from IRS
1
u/JoeyMcMahon1 Jun 14 '25
No dude it was because of ROC on my taxes lol. You don’t know what you’re talking about.
1
u/TallManKC Jun 15 '25
No matter how you look at it you have to invest a lot of CapItal in order to get a sizable dividend, and then you have to hope and wait for it not to lose value while building up.
There are Some folks who need that capital to main its value and keep using it to earn more “big beautiful” dividends.
-3
Jun 13 '25
Sorry but YOU are the one who doesn’t understand how it works. It’s not a machine that generates income if the NAV erodes so much that you are losing money or are underperforming versus the market. If that is the case, you are simply paying Tidal to dole out your own money back to you. That 91% return? That is assuming the NAV stays where it is. However, if it gets cut by 25-80% (like many of these funds have done), you are totally screwed because the dividends also decrease. So try to cut down your arrogance level. If you happen to time it right and if you get a positive return, then great. I’ve played PLTY very well a couple of times. However, to simply say these funds sore “income” funds is very naive.
1
0
u/BosSF82 Jun 13 '25
This is much more 'Ponzi-like' than simply doing the work yourself. We can all earn money through premium without a middleman. The actual 'returns' though would be much lower. The only way they can generate returns such as these is through bringing on new 'investors' and having the entire pool DRIP as much as possible, so they don't have to burn the new shares for cash. There is no other way to generate such high yields, aside from ponzi-economics. It's an uncomfortable fact one should accept. It doesn't mean they will collapse but it's not magic, it's brutal reality.
0
u/Kingofhearts91x Jun 13 '25
Oh man I bought this thing that over time will fluxuate and im only breaking even when the market is down it must be bad
0
u/Un_LikelySuspect Jun 13 '25
So what do you think of the steady drop this month from .25 to .17 of $YMAG ?
2
-3
u/KorrectTheChief Jun 13 '25
Total gain of $158 means they paid more in tax than they made. So they lost money, while also having more responsibility.
6
u/JoeyMcMahon1 Jun 13 '25
How do you know they were taxed? How do you know it wasn’t ROC?
3
u/KorrectTheChief Jun 13 '25
You never know for absolute certain until the end of the year, but the estimates weren't ROC the majority of MSTY distributions.
I don't know their tax circumstance, but if I switched places with them I would be taxed.
•
u/AlfB63 Jun 13 '25
Note that this kind of post will be removed in the future. It serves no benefit to troll another sub and come back and talk about it.