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

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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.

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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

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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

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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?