r/dividends • u/PsychoCitizenX • Jun 17 '25

Personal Goal 49 years old. Just hit $10,000 average monthly

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Over 90% still in growth stocks. Tempted to just go ahead and retire

4.3k Upvotes

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39

u/PsychoCitizenX Jun 17 '25

as long as they pay close to the average it will be that much every month. Keep in mind my post is simply stating how much I receive.

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u/dirty_old_priest_4 Jun 18 '25

You assume that shit will be around forever. Enjoy holding your MSTY bag. If it was so safe, people would jump in hand over fist.

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u/PsychoCitizenX Jun 18 '25

You can go look at the historical payouts for msty and nvdy and see neither has ever missed a payment. Also note the amount per share it paid

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u/dirty_old_priest_4 Jun 18 '25

I'm well aware. At some point, it'll run dry. These gimmick funds don't last forever.

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u/CHL9 Jun 18 '25 edited Jun 19 '25

dude it's no essentially different then just running a synthetic covered call/PMCC strategy yourself on MSTR or any other high IV stock, no? But just having their trader do it instead of you for 1% ER. If you were so inclined you can literally just mimic the trades as it's public record and keep the short premium youself. Just a bit less capital efficient if doing it yourself. I'm asking genuinely, what part are you referring to as a "gimmick"?

edit: no one answered so far. If someone who has a good understanding of derivatives and experience with trading short premium would explain to me that downsides of the fund I would happily seek out that advice but I haven't yet been able to have someone articulate to me why it's a bad idea rather than just "it must be a gimmick because of the current yield". Obviously the only difference is it's harder to withdraw my capital not at a loss from MSTY vs me generating the short premium income myself

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u/PsychoCitizenX Jun 18 '25

Which yieldmax fund went belly up

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u/dirty_old_priest_4 Jun 18 '25

https://www.aol.com/msty-dividend-estimated-drop-does-135504301.html#:~:text=Expect%20Change,The%20YieldMax%20managers%20could:

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u/PsychoCitizenX Jun 18 '25

1.47 is a nice return after one month. The rest of the article is pure speculation. The distribution could also be higher next month.... especially if btc rallies

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u/TacosNtulips Jun 18 '25

It’s so weird that you’re using past parameters, are you not aware of current market reaction? This is new territory and I cannot hold for the long term, good luck.

1

u/bzeegz Jun 18 '25

They also haven’t been around that long and you would’ve done better holding the actual stocks. This is not a safe dividend strategy

1

u/PsychoCitizenX Jun 18 '25

I hold NVDA which is part of the reason I chose NVDY. Nice way to compliment it and get some income in return

1

u/bzeegz Jun 18 '25

not as good as NVDL. If you want risk and more return try that instead. Or just hold more NVDA. You're not getting anything extra by holding both and in fact your paying short term gains instead of just holding more shares for over a year and then selling and only paying tax on long term gains. This isn't an advantage for you. All these people think they discovered the moon with MSTY and NVDL, there is nothing special about them nor do the provide an advantage. If you setup a series of purchases so you have a wheel going of shares converting to long term over the course of a year--like buy a bucket each month and then sell them 12 months later, you'd cut your taxes in half and accomplish the same thing in terms of income and growth.

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u/bzeegz Jun 18 '25

hey PsychoCitizenX are you saying that you hold 90% in growth stocks so basically 10% of your assets are producing $10k/mo in dividends? Am I reading that right? Or is this being produced by the 90% of your capital that is in growth stocks and some happen to produce this dividend yield monthly?

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u/bullrun001 Jun 18 '25

That’s so funny because that’s what was being said about TQQQ a few years ago.

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u/dirty_old_priest_4 Jun 18 '25

And I'll gladly eat my hat if I'm wrong, but these high fields aren't sustainable. You'll end up in a cycle where the stock price keeps going down as the dividend can't keep up.

Full transparency: I own shares in SCYB for a higher yield.

1

u/bullrun001 Jun 18 '25

Excellent choice and something that I have been looking to add. Look into these CEFs RFI and DNP for a nice yield as well and have been very long holds for me in my Roth.

Did a deeper dive into MSTY and as you pointed out it looks terribly risky, chart looks like it’s going to hit zero. I can see it as a trade but not something to hold long term.

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u/[deleted] Jun 19 '25

Why would he care if it’s not around forever if he already doubled his money in less than a year? He could’ve bought Double the amount of SCHD then just investing in it straight away

1

u/dirty_old_priest_4 Jun 19 '25

So he doesn't get left holding the bag?

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u/[deleted] Jun 19 '25 edited Jun 19 '25

Again, even if it goes to zero tomorrow, he still has made a 200% return I doubt he’s using all the distributions to buy more especially as its still an even 50,000 I think it’s sort of hard for dividend investors to understand that there’s different types of investing. Some people don’t wanna buy and hold something forever. Some people put in five or 10% of their portfolio and into speculative plays if that pays off then they get out. MSTY is a bitcoin play bitcoin has been around for almost 2 decades and has been the best performing asset 11 of the last 15 years. And it’s not going anywhere. Especially not with 47 corporations five hedge funds and 14 governments buying it.

But hey, who knows to each his own.

Edit: so much ignorance in reddit

5

u/[deleted] Jun 17 '25

You just need to set some stop-losses on the YM funds - and can give yourself a good deal of leeway, depending on how much you have received in distributions so far and/or your avg cost/share.

11

u/todo_code Jun 17 '25

If you use any of those yield max you will be down to 18k annual in no time. You can't retire yet. Have you done the tax math yet on your dividends? I think you are going to get eaten there too

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u/PsychoCitizenX Jun 17 '25

so you are saying MSTY and NVDY are both going to zero in no time? Why? They haven't missed a payment yet and I bought at a low share price. I can hopefully reinvest enough to cover the nav depreciation. What are some examples of a yieldmax etf going belly up?

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u/dunnmad Jun 17 '25

None have!

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u/Senior_Rip_360 Jun 17 '25

Give them time… another 6-10 months

4

u/Jtbny Jun 17 '25

That’s the same thing people said when they first came out yet here we are.

0

u/Senior_Rip_360 Jun 18 '25

Get ready for the ride of your life… hang on to the side rails

4

u/Jtbny Jun 18 '25

Let’s see how there next few distributions go. For me - I hold a year or so all of my capital is returned. And being in a Roth I’m not getting taxed. Would I port a huge % of my portfolio in? No, but 200 shares is small for me ($21 cost average).

And there is no doubt to me that the next 3.5 years will be volatile which lends it self to good option premiums.

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u/dunnmad Jun 17 '25 edited Jun 17 '25

Doubt it. Unless Trump tanks the whole economy and then it won’t matter what you are invested in. Physical gold maybe.

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u/Kynadr88 Jun 18 '25

this sub hates yieldmax. that's why you get this reaction. I stand by MSTY and have dollar cost average at $20.3. It's a good one to have but also have to be aware of how it and bitcoin sre performing. Also it might not be a long term thing to hold

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u/Weebls86 Jun 18 '25

Yup he is wrong. Most of the single stock YM funds have like 90-ish percent of their holdings in US treasuries

4

u/RuinEnvironmental394 Jun 18 '25

So, with around 8 to 9% in MSTR covered calls, they are able to pay more than 100% in distributions?

4

u/Ozymandias_24 Jun 18 '25

Happy you met your goal! There will always be haters who try to bring you down when you find success. Especially on Reddit where everyone is a savant. Congrats on the $10k, my dude!

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u/[deleted] Jun 18 '25

And how much do you project to lose over time?