YieldMax is paying a 40% dividend yield.


(here is what that actually means for your money)
$10,000 invested for 1 year.
Dividends reinvested.
YieldMax: down 43%.
You have $5,700.
Q: up 29%.
You have $12,900.
The yield is based on the current share price.
As NAV drops.
Your payout drops too.
10% of $100 = $10.
10% of $50 = $5.
That is the trap.
The yield looks great because the share price is falling. But don't be tricked... Its a percent of the lower share price... Not your basis.
Sell portfolio secured puts for income. Keep the growth. Best of both worlds.
post-image
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pin