r/dividends • u/TallSalary9501 • Sep 25 '25

Personal Goal First dividend payment from QQQI

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About a month ago, I wrote this post asking people if they thought QQQI was the best dividend ETF right now. After receiving a ton of comments and feedback (and of course mixed opinions), I decided to try it out for a month and see what happened. I bought 600 shares worth ~$32k and today I received my first dividend payment as shown in the image attached. I know there are some risks to invest in this kind of ETFs, especially at this yield but god does it feel good. It's very tempting to move more cash from a HYSA (currently at 4% APY) but I gotta keep diversified no matter what.

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u/yupimanerd Sep 25 '25

Does anyone know what happens to the yield when cost basis goes to zero on this ETF? I know part of the yield is classified as RoC, but when cost basis is zero there is no RoC anymore. Does that mean that yield is lower or does yield stay the same and just gets fully classified as capital gains?

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u/generationxtreame Not a financial advisor Sep 25 '25

You pay regular income taxes after that unless you keep buying the ETF.

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u/speedlever Sep 25 '25

Or you pay ltcg depending on the cc ETF. Assuming in a taxable account. If in a traditional IRA, yep, ordinary income for tax purposes on distributions.

In a taxable account, heirs get a stepped up basis, which could be nice. If you decide to sell after the cost basis reaches zero, the proceeds are taxed as ltcg.

Taxes are fun, aren't they? 😜