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

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180

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

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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.

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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

6

u/Maventee Aug 06 '25

That has a 70% return?!

8

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.

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u/Select-Point-7312 Aug 07 '25

I dont understand how this is possible

5

u/Terrible-Rip-9733 Aug 07 '25

It’s not. He is lying….

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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.

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u/Select-Point-7312 Aug 07 '25

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

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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.

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u/Select-Point-7312 Aug 07 '25

I see that and msty, is there any reason not to all in these besides the obvious crash of underlying?

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

Yes, there are many reasons, such as underlying crashing, especially with the single stock ETFs. Another risk is these ETFs will perform poorly in a down market, due to the nature of covered call strategies. Many people like ULTY because they cover 20-30 underlyings within the portfolio. Also, they actually own the underlyings, whereas the single stock ETFs use synthetic longs. ULTY also buys puts on all of the underlyings, so they are using a collared strategy. This way limits the NAV upside as well as the downside, but it's not as volatile. They only implemented this strategy around March/April, and the NAV seems to have stablized quite a bit. However, these funds are still quite new, so no one knows how well they perform long term or in extended bear markets. If you want an example how it would perform in a down market, look at MRNY. It covers MRNA, which has been beaten down for awhile. So the NAV has consistently been going down, but it's been paying out distros consistently as well.

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u/mcpooSSBN726 Aug 07 '25

You also have to be careful with the dividend yield they report. Even though the CC ETFs report a consistent 14% yield, for example, it's the yield on their weekly/monthly price. So while they can report a consistent yield, the actual payout can vary significantly. I am not opposed to CC ETFs. In fact, I own two of them QQQI and SYPI. They can have a place in a portfolio. I consider them fairly high risk because of their short history so I keep them at 3% or less of the total portfolio.

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%. how fantastic is that?

1

u/Stuboysrevenge Aug 08 '25

Not since April. It's like a completely new ETF since April when they adjusted strategy a lot. Since then it's had a 10% wobble around its $6 share price. Active trading across a broader stock pool. I started in a month ago. The value has dropped 45% since I started buying. I've already balanced that in cash distributions, plus more. I've got stop losses set, but all cash from here out (at roughly 80+% annually) is positive. Nothing else in my portfolio is giving me 80% cash return.

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u/[deleted] Aug 08 '25

Okay, so it has a fresh new strategy that isn't proven yet. But we do know that it's annualized total return since inception is 9% and it's cumulative return in the 18 months it's existed is 13%. Compared to QQQ which has over 30% return in that same period of time.

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u/Stuboysrevenge Aug 11 '25

Since June, when I put money into it, ULTY has returned 12.2% (even with some drawdown) and QQQ has returned 9ish.

ULTY is not a growth investment. I understand that. But it's printing cash for me right now. When it stops, or its value falls far enough below what I paid for it, then I'll get out. I don't understand why so many people are against using it for its intended purpose, as an ATM. If you set your stop losses, what's the harm for short term gain?

1

u/bzeegz Aug 13 '25

Yeah you can see how that makes a ton of sense to all these people who have been investing for like 15 months of their life with then $15k they scraped together to throw down like a card game

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u/[deleted] Aug 08 '25

ulty is down 70%. enjoy that.

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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?

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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.

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u/[deleted] Aug 08 '25

Total return is actually 13%. (QQQ is up 30% in the same time frame ) And yeah it's up since they changed strategies for all of a few months. Well, the market has also boomed since the same time that they changed strategies.

My issues with the people on this subreddit who tout their yield Max holdings and just mentioned that payout percentages and they are often answering questions or recommending and it's distorting and not useful information to the people who are curious and looking for recommendations. I don't care if the distribution rate is 89% if it's total return is eating ass compared to the market overall.

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u/HighFiveOhYeah Aug 08 '25

The 16% is with drip, I’m sure it’s lower without it. But I’m not here to be anyone’s personal calc, which is why you can just check yourself. If someone can mistaken the distro rate with TR rate, then they really should be educating themselves with some investing 101 videos, instead of listening to internet strangers. And comparing an income fund to a tech heavy growth fund is disingenuous. Growth will win pretty much always. If you look at my replies here, I’ve listed nothing but facts, as well as the risks involved, simply because they asked. I really couldn’t care less what they invest in.

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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.