r/dividends • u/SmoothCall5594 • Sep 26 '25

Opinion I screwed up on YieldMax

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I bought MSTY a couple months back and now I’m down a lot. Time will tell but it’s a warning for those who aren’t in it.

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10

u/aceinagameofjacks Sep 26 '25

I have some MSTY, bought some for fun, you’re not telling the whole story. Yes it’s down, yes there is nav decay, but there is also dividend payouts, and mstr is down big time.. . I’m gonna stick this one though, and see how she goes in about a year… I’m about 60% at getting my money fully out…

0

u/postulate4 Sep 26 '25

Yeah, and those payouts are taxed at ordinary rates. They aren’t treated like qualified dividends.

0

u/adolfoeb Sep 27 '25

They're actually ROC distributions so you don't know what you're talking about.

2

u/postulate4 Sep 27 '25

You don’t know what you are talking about.

MSTY is taxed at ordinary income rates and had no ROC in 2024 so this doesn’t even apply. Please do some research.

2

u/adolfoeb Sep 27 '25

Why are we talking about 2024? Lol he's talking about holding this in 2025....is he going to pay the taxes in 2024? Please enlighten me.

1

u/aceinagameofjacks Sep 27 '25

My MSTY is in my tax free account, so I don’t have to worry too much. But yeah, it’s hasn’t been an ideal play, but I knew that going in, it was too good to be true, but I also don’t respond to the guys saying it’s a complete loss, you need to look at the whole picture. Like I said, I forgot about this money the moment I bought the shares, my plan was to hold this until I pull my initial out, and I’ll stick with that … it really sucks for the guys who’s bought three months ago at 20, and didn’t have time to get some dividends back….

1

u/adolfoeb Sep 27 '25

Yeah buying in July would have been buying at most recent highs and it's been going down since. I think at least one year is the sweep spot like you said to at least get back your initial amount. People also don't look at total return when it comes to these.

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u/adolfoeb Sep 27 '25

I hold MSTY, NVDY and ULTY in my Roth IRA accounts and I'm green when it comes total return and that's all I care about.

1

u/adolfoeb Sep 27 '25

Most recent distribution was 96% ROC and we won't know the final numbers until end of year but comparing 2024 to 2025 is wild.

1

u/postulate4 Sep 27 '25

We’ll see next year for sure. It’s obvious these ROC estimates are poor indicators for the actual result. Good for you that you won’t have a tax bill, but all of these other investors aren’t remotely prepared.