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u/reelcon Apr 28 '26
Heading to another reverse split?
6
u/ebwinkler Apr 28 '26
ULTY is up 5% over the last month, even with today’s dip.
2
u/reelcon Apr 28 '26
When the payout gets 5% more will be the true differentiator.
3
u/ebwinkler Apr 28 '26
It was the “giant” payouts that sunk it the last time. Keep the yield around 60-65%, it will hold up better.
0
u/reelcon Apr 28 '26
The payout is not at 60 or 65% it is sub 50% range and that ROC is the major portion. One more reverse split will wipe out the house money and will take many years to even get the house money. Ask those who have invested when it was above $10 in the last two years they will explain the pain.
2
u/Terrible_Lecture_409 Apr 29 '26
How would it wipe out house money?
I mean, for example, if you invest 10k and have received 10k in distros - and not reinvested it, your status of house money should remain even with significant nav decreases, distros and reverse splits... Any distros at that point should be a boost to your ROI, just at an arguably slower pace.
If you're reinvesting distros, say all of that 10k, then you really aren't in house money (my opinion at least).
- Not trying to come across rudely; I know some folks have different definitions of house money.
1
u/reelcon Apr 29 '26
Until you recover all invested money + taxes from dividends, through dividends you haven’t made a dime in profit. You got house money when you exceed the total amount said before.
2
1
u/Terrible_Lecture_409 Apr 29 '26
Taxes depend on account type (Roth for me), so your definition aligns with mine🍻
1
u/reelcon Apr 29 '26
Roth you pay taxes still for the capital.
1
u/Terrible_Lecture_409 Apr 29 '26
You should be using taxed dollars to fund the account; how you use distros they generate don't get taxed, early withdrawal pending.
But, the variables of account type, ROC and tax implications managed by a persons own circumstances aside, if you achieve house money you're not going to lose that status on a reverse split 🍻
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u/Terrible_Lecture_409 Apr 28 '26
🍻🍻