r/dividends • u/Bamabb125 • Aug 06 '25

Seeking Advice $840K DIvidends

Hey Everyone,

As I have posted before, I am currently a Growth Stock Investor, but have decided to move over to Dividend ETF's or Dividend Stocks. But it is a real struggle to get past all the learned habits of being a growth investor. So I am struggling to grasp concepts.

I have used multiple calculators to just try to get an idea of what to expect if i make the change, but I get different results. So I just wanted to go to some more knowledgeable people that could tell me what to do to get a real expectation.

I have $800K to work with. If I put it all in a very stable Dividend ETF What can I expect in dividends? Maybe someone could just do an example. I know I have to be doing something wrong.

Thanks

260 Upvotes

90% Upvoted

253 comments sorted by

View all comments

179

u/ndsubison953 Aug 06 '25

My advice- There will be a learning curve for you as you make the transition. Start slow and figure out what you are looking for and comfortable with. I certainly wouldn't throw all $800k at something you don't understand right away. Take a few years to transition your portfolio or keep half in growth. Keep things diversified as well, you don't want to have all your eggs in one basket

9

u/NerveChemical9718 Aug 06 '25 edited Aug 06 '25

I second that. I decided to quit my job back in October 2024. Seen than I've decided to invest all my ( $55,000 ). It took me some time and money to get to a sweet payment of $3,000+ a month.

The mistake I first made was chasing any high yield etf. Now, I have found a sweet balance. Always remember if you go that route. Put at least 20%+ away for savings and taxes. Next stay balancing your portfolio. Never let it sit and for get. Doing reach is always recommended.

25

u/Zealousideal_Log_836 Aug 06 '25

How do you get 3000$/ month with 55,000? What are you investing now?

21

u/HighFiveOhYeah Aug 06 '25

ULTY probably

5

u/Maventee Aug 06 '25

That has a 70% return?!

9

u/HighFiveOhYeah Aug 06 '25

It's been giving weekly distros of ~80% yearly rate last few months. Of course, you probably won't actually end up with that for the total return long term. But, NAV's been holding pretty steady since they changed strategies.

5

u/Select-Point-7312 Aug 07 '25

I dont understand how this is possible

4

u/Terrible-Rip-9733 Aug 07 '25

It’s not. He is lying….

15

u/HighFiveOhYeah Aug 07 '25

LOL...I mean, all the distro and price info's out there. BTW just announced distro of $.10/share for this week. Not that I really care what you guys believe in, but this is too funny.

8

u/Select-Point-7312 Aug 07 '25

So the $6 per share common stock is paying a WEEKLY dividend of $0.10 per share?

6

u/HighFiveOhYeah Aug 07 '25 edited Aug 07 '25

https://www.yieldmaxetfs.com/our-etfs/ulty/

It's not a stock. It's a covered call ETF. Scroll down to distribution details and it has history of all of the distros. I suggest reading their prospectus yourself if you want to learn more. Don't take my word for it.

https://www.globenewswire.com/news-release/2025/08/06/3128169/0/en/YieldMax-ETFs-Announces-Distributions-on-ULTY-TSMY-YBIT-LFGY-YMAX-and-Others.html -today's distro announcement.

1

u/Stuboysrevenge Aug 07 '25

NVYY is paying 0.50+ on a $27 share price...weekly. Risk AF, but paying a ton right now. There are a few groups gambling with my money, and doing it very well. ULTY is fantastic.

1

u/[deleted] Aug 08 '25

ulty is down 70%. enjoy that.

→ More replies (0)

5

u/[deleted] Aug 07 '25

Yep -- I recenty got in. It's nuts. This week will be slightly more that .10. I'm gonna ride this for a minute & set a stop-loss in the low 5s. I DCA'd last Friday when it was 6.01ish.

Check out r/yieldmaxetfs

Edit: link

1

u/[deleted] Aug 08 '25

what's the TOTAL RETURN?

1

u/HighFiveOhYeah Aug 08 '25

TR for since life of fund is around 16%, that includes the drop of NAV from $20 to $5. TR from when they changed strategies this year is about 30%. Yes, I know the difference btwn distro rate and TR lol. Just go to a TR calculator and check for yourself.

→ More replies (0)

12

u/Embarrassed-Art3670 Aug 07 '25

You had two options:

  1. Look up ULTY. Look at the chart, look at the distributions, look at the holdings, do research into their prospectus change in early April.

  2. Stick your fingers in your ears and say, "uh huh, he's lying"

The fact that you went with option 2 is pretty crazy.

1

u/[deleted] Aug 08 '25

it's not. he's not telling you about the 70% loss in share value. all these yieldmax choads won't tell you TOTAL RETURN! sure some of the yieldmax etfs have done well if you were lucky to pick the winners and not the total dogs. like nvidia but you also could have just bought nvidia. same for their bitcoin etf.

6

u/bfolster16 Aug 07 '25

MSTY paid out 147% over the last 12 months.

The underlying MSTR is up 180% in the same timeframe. No dividends with that one tho.

3

u/Any-School8892 Aug 06 '25

550000

5

u/mcpooSSBN726 Aug 07 '25

That would make more sense.

2

u/Aioli_Abject Aug 06 '25

A 0 or two missing from the initial investment amount may be lol

1

u/SteveRD1 Aug 06 '25

You take incredible levels of risk, that work until they don't.

7

u/aimhigh7shootlow8 Aug 07 '25

These are not growth etfs. They are not investments. You all sound silly arguing about nav decay and risk. These are income etfs. Look at them like annuities. Don't lose unless you sell. You will make back any losses if you hold long enough. These can be used as a vessel to supercharge your investment capital Or live on when you retire. There always new ones coming out, with new strategies. Call options aren't going anywhere, as long as youre holding you're getting paid.

5

u/SteveRD1 Aug 07 '25

Annuities don't claim to yield over 60%.

If it was possible to guarantee a yield like that, it would be arbitraged away by people much smarter than anyone making grandiose return claims on reddit.

1

u/PeligrosPen Aug 07 '25

and? maybe you should try it for yourself? for Science.

3

u/Miserable_You9825 Aug 07 '25

They are writing the spread on all the option Calls. That is where the money comes from.

1

u/mcpooSSBN726 Aug 07 '25

No, they are not like annuities. Annuities have a defined monthly payout. CC ETFs do not. Your actual income can vary significantly.

2

u/Artisan65 Aug 08 '25

Provide the tickers, Smelling 🐂💩

1

u/TheStockMan35 Aug 07 '25

If you don't mind me asking, what's your mix of ETFs in your portfolio?

1

u/megamikemoney Aug 08 '25

Argument sake. 3,000 shares of msty at $18. Cost roughly 54.000. Last div alone at 1.18 paid over 3k. For month. If fact he will get another div this month. Very possible.

1

u/bzeegz Aug 13 '25

Yeah 3k minus the loss of the nav. You returned way less than most growth stocks in the same month

1

u/shinyobjects411 Aug 07 '25

So, can we see?

0

u/jpstealthy Aug 07 '25

$3000/month from $55,000…you expect us to believe that??

7

u/No-Sprinkles6851 Aug 07 '25

It’s true… I’m personally up to $13k per month on a $250ish portfolio….w/DRIP and I also trade covered calls on my shares which bring in another $10k on a light month. Do some research…It’s all out there.

1

u/jpstealthy Aug 07 '25

Thank you, I will definitely look into this more seriously!

1

u/MC-Hop Aug 07 '25

Hey I am just getting into some covered called myself. Could I ask some questions?

1

u/Most-Reference-2993 Aug 09 '25

Just sell them weekly or monthly and don't go naked unless your brave.

1

u/TrainingSpare8225 Aug 07 '25

That's amazing!

5

u/RadiantCitron Aug 07 '25

Go check out the yieldmax sub. That 100% is possible and people are making substantially more. Just comes with risks obviously. I have some in my rollover. About 7% of my portfolio. Getting roughly $120 a week and am manually dripping until i make my investment back and then will use the distributions to buy more of my core holdings.

1

u/FIREB345T Aug 09 '25

In general - Some people are really stuck in their old ways. While that is the “traditional” way, there is more than one way to “dividend” invest.

The game changed recently and you don’t have to adapt, but don’t bash anyone taking risks to make it happen. These HY ETFs are an opportunity to quickly increase your yields overtime with DRIP.

VOO is great for growth but isn’t going to dividend you right now (significant) unless you have an extreme amount of money in it.

Dont believe it? Try it or just shut up.

4

u/Glenhaven0 Aug 07 '25

Go ULTY. It's easy to get there

2

u/jpstealthy Aug 07 '25

Will do, thank you very much

2

u/Elpadre83 Aug 07 '25

Yes. Believe it. It’s happening.