TSLA
Tesla
-- 454.130 NVDA
NVIDIA
-- 139.930 RGTI
Rigetti Computing
-- 15.4400 LAES
SEALSQ Corp
-- 8.760 PLTR
Palantir
-- 82.140 
Is the dividend yield very high? Is it worth investing?
$TIDAL TRUST II YIELDMAX ULTRA OPTION INCM STRATEGY ETF (ULTY.US)$ Hilarious, only after buying will you realize you know nothing about the stock market. I quickly crammed some knowledge about dividend yield of this stock. Summarizing the key points:
The essence of making money from this thing is to "outer perform". Only when it outperforms those stocks, you earn more than with the stocks. As for how much it outperforms, I will use a lazy method to compare below, which is not precise. We will look at the price on Google because it doesn't care about things like price adjustments due to dividends.
Take the companies in the S&P 500 index as an example, $YIELDMAX MRNA OPTION INCOME STRATEGY ETF (MRNY.US)$As an example, his price on October 27, 2023 was 18.33, while on moomoo, it showed a closing price of 10.88 for that day. This is because after the dividend was executed, they adjusted the historical stock prices accordingly.
Then we compare the actual stock with the prices provided by Google. $Moderna (MRNA.US)$ (ps: the price provided by Google shows a decrease after execution)
Here, you can see that the closing price on October 17, 2023 was 86.33, while the current price is 57.46, compared to mrny which went from 18.33 to 7.55. Assuming you bought on that day and held until now, factoring in dividend income, you would have 7.55 + 9.1782 = 16.7282. Compared to a loss of
Stocks -33.4%
ETF -8.7%
And comparing with the highest point obtained, it is not shown here, but in any case, for
Stocks 57.46/166.61 (loss of 65.5%)
etf 10.20 (after deducting dividends) / 22.06 (loss of 53.8%).
From here, if you hold mrny for a long time, you won't lose as much in the underlying stocks.
But, we take $YieldMax NVDA Option Income Strategy ETF (NVDY.US)$ for comparison $NVIDIA (NVDA.US)$ to see, it's another situation.
Here, comparing buying the underlying stocks and etf on May 12, 2023.
Underlying stocks 28.323 to 135.720 = 379% return.
etf 19.83 to 25.070 (including dividends of 0.7463, 0.9574, 0.8136, 0.9297, 0.6771, 0.415, 0.5071, 0.626, 1.5304, 2.6219, 2.6083, 1.1988, 2.563, 2.4707, 1.2512, 1.3548, 1.0999) = 47.4412 = 139% return.
From this comparison, it can be seen that the profit of this stock is actually not as high as the profit of the underlying stock.
The strategy to make money in this stock is to use "Reinvestment" to snowball. Let's do some math. Assuming you can consistently catch the midpoint to buy nvdy, with an average monthly dividend yield as high as 4.8%. After experiencing 17 dividend payments, your profit will be 1.048^17 = 2.219 (121.8% return), taking into account stock fluctuations, then 2.219*2.139 ≈ 4.746 (374.6% return). Of course, the actual situation depends on specific circumstances. At first glance, the return may seem smaller than owning the actual stock, but the advantage is that the risk is reduced. And if you are bullish on a stock in the long term, just hold on to it tightly, treating it as a monthly bonus. The downside is that it's challenging to play, somewhat risky, not suitable for beginners like me.
The above is my current understanding of yieldmax. If there are any errors, please help correct them. Thank you.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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三枚筹码足以 OP : Actually, there is one benefit, which is if you are not good at reading indicators, you don't need to rely on selling to wash away costs, just buy more on dips using dividends to supplement the position, it can be considered automatic washing, anyway, it is quite resistant to declines (the probability of underperforming the main stock is still high).
Southgate : My bias towards etfs is that regardless of which etf, they are all promoted by a few star stocks mixed with a bunch of garbage. It's not until you lose money and look back to see what those junk stocks really are inside. But the advantage of etfs is low volatility, suitable for beginners to hold for dividends.
72919752 : Still don't quite understand. Can't I just buy dividend stocks without buying the underlying stocks? Twelve dividend payments a year, that's a good deal.
三枚筹码足以 OP 72919752 : Yieldmax actually only caters to local residents in the usa. Residents from other countries will definitely lose money/run behind the underlying stocks by 100%, because the dividen will be deducted by 30%. Moreover, according to many bloggers' analysis, yieldmax often lags behind the underlying stocks. Those who advise you to buy yieldmax are definitely novices, they haven't bought it themselves.
股民威 : The original poster's analysis is very good. Not like a newbie! Haha. Keep it up.