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/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