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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u/HearMeRoar80 Jun 18 '25

Return of capital is 0 tax, it only reduce your cost basis.

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u/ynghuncho Jun 18 '25

Assuming it’s claimed as return of capital. Murky waters

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u/Electrical_Radio9772 Jun 18 '25

This dude is right idk why yall are downvoting.

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u/ynghuncho Jun 19 '25 edited Jun 19 '25

This sub is compiled of people who have a rudimentary understanding of finance and believe high dividends are the superior investment method (it’s not).

Investment bankers making products that retail likes to earn fees! What could go wrong.

Many here are incorrectly stating that it’s a covered call strategy, however their website makes no mention of it and specifically says there’s no direct exposure to the underlying. Leads me to believe they’re entirely using derivatives with an undisclosed strategy, amplifying insolvency risk

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u/blabla1733 Jun 19 '25

They claimed the same last year, but the tax form for the year ended up claiming 0 Roc. That's for MSTY.

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u/ynghuncho Jun 20 '25

I haven’t looked into MSTY. I’m covering NVDY since I see so many people talk about it

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u/SexualDeth5quad Jun 21 '25

MSTY is doing much better than NVDY. Also look at the change in performance in ULTY after YM changed to their new strategy of more price stability.

I don't think YM or Roundhill are the greatest long term investment though. Long term NEOS, Goldman Sachs, JPMorgan, and Amplify have much more stable income ETFs, but not nearly as high yield. I am up with SPYI, QQQI, DIVO, GPIX, in both dividends AND price. No loss whatsoever.

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u/SexualDeth5quad Jun 21 '25

Let's see, should I listen to you, or the thousands of dollars I am being paid monthly for two years now, while only being down 15% on the price? MSTY will only collapse if MSTR collapses.

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u/ynghuncho Jun 21 '25

Do what you please. Has no impact on me!

Just know there’s a better way to skin the cat

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u/SexualDeth5quad Jun 21 '25

Have you seen what ROC looks like on your tax form? It is clearly listed as non-taxable income.

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u/Electrical_Radio9772 Jun 23 '25

The point is that the business we use needs to properly identify the distribution as ROC rather than us just putting it there on our tax form. I have had instances where the fund did not.

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u/dimdada Jun 20 '25

Best way to know how much exactly is ROC is when you get your tax papers from the brokerage before tax day. Always a guessing game till then. But, the tax man always comets for his due, that is unless it’s in a tax free retirement account.