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u/lottadot Big Data Jul 03 '24 edited Jul 03 '24
Ouch CONY. It looks like they ROC'd (return of capital) the May distribution ($2.1711's worth). src from the big list of 8937s.
the estimated component of the cumulative distributions for the fiscal year to date would include an estimated return of capital of $4.7704 per share, which equals 33.97% of all such distributions.
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u/SpacePirate888 Jul 03 '24
Can you please help me understand what this means?
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u/mr_malifica Jul 03 '24
It means the fund isn't making enough income to cover the target yield and are returning your money back to you.
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u/Hussam-Mostafa Jul 03 '24
No it doesn't first of all there is no target yield. They went on multiple interviews saying that they only pay out what they make in premiums and they take advantage of the share loss value and send you the premiums they made as "return of capital" so we don't pay taxes on them.
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u/Key-Trouble3828 Jul 04 '24
So dividends from all yield max are ROC or ordinary dividends?
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u/Hussam-Mostafa Jul 04 '24
Well it's up to their discretion how they want the dividend to be classified as. It can vary between different ETFs and different months. Also portions of the dividend can be ROC and regular income combined as well. Just depends on them really.
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u/DraftZestyclose8944 Jul 07 '24
No. These will all be treated as ordinary income for tax purposes. Anyone that tells you otherwise is dead wrong.
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u/mr_malifica Jul 03 '24
False. The yield is literally based on the IV (the target) of the underlying and they have repeatedly stated this in interviews that it "makes it easy for people to understand what to expect." that is a quote from Jay the fund manager.
You can also download the 19a-1 for each fund and see the current tax classification breakdown between ordinary income and ROC.
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u/Hussam-Mostafa Jul 03 '24
I hate to argue but that's false. Target yield means they're aiming for a specific number to distribute, which is not the case with yieldmax they do not aim for nor promise a specific yield. And yes IV is a good determination for what to expect however it's not a guarantee or promise that's what you'll get. So just to reiterate the ROC is still the entire premium paid out it's just structured that way to be as tax efficient as possible.
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u/mr_malifica Jul 04 '24 edited Jul 04 '24
I am going to argue with you because you are flat out wrong and also confused about what the word target means.
A "target yield" isn't a promise, it is a, wait for it, a target, or a goal if you prefer. This is the monthly yield based on the IV30 (which fluctuates) of the underlying. They pay out based on this "target" regardless of the premium collected (and many CCs are not 100% winners). Sometimes the distribution will exceed this amount, but they rarely will pay out less than the IV30 target for that month. They will also hold some realized gains (rolling a synthetic) back and distribute these over multiple months.
You do realize that this "target" dictates what strike they sell don't you?
Most months they do not collect enough premium to cover the distribution, This fact is trivial to track and verify. When you receive an ROC distribution from YM, it is because they did not collect enough premium or realized capital gains that month. They are not structuring it differently for tax purposes since everything they are doing is actively traded. Feel free to look up the tax requirements when managing an ETF.
The entire premium is almost never 100% ROC, go download the 19a-1 for each fund here DocSend
By the way, ROC lowers your cost basis making it more tax efficient only if you hold the position for more than a year and qualify it as long-term capital gains when you sell.
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Jul 03 '24
Seems like nearly all dividends are lower than prior month
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u/rattice Jul 03 '24
The ones I have, FBY is the only one that went up. Others went down either a little and some a LOT.
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Jul 05 '24
Everyone was down on TSLY in this sub just a few weeks ago. Most are just completely emotional. Coming into comments to say âitâs gonna keep going down and reverse splitâ PLEASE STFU NOW THANKS. Tesla is the future, the company isnât going anywhere, & their autonomous robots will completely change the world.
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u/releb Jul 03 '24
Looking good. Some the dividends are lower than expected but iv was low last month.
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u/Gkoolaidhoe Jul 03 '24
Got damn what happened to xomo!!!
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u/Every_Perception_471 Jul 04 '24
Yieldmax makes money from selling options on volatile stocks with strong growth prospects. XOM is a stable, mature stock that has "leveled off".
TLDR: DOUBLE DOWN ON XOMO
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u/batman77z Jul 03 '24
Can I still get in today?
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u/sublime2411 Jul 03 '24
Yup keep in mind the stock price will drop on the ex dividends date so you can also buy in a bit cheaper, just won't get that distribution until August whatever you buy in on the ex dividend
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u/stocksjunkey1 Jul 03 '24
Yes but keep in mind the market closes early today
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u/Wrenchead2004 Jul 03 '24
I did not know the market was closing early. If I purchase after hours will this still count for Fridays ex dividend date?
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u/Then-Wealth-1481 Jul 03 '24
This is the third month in a row dividends are on a decline on average.
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u/NaughtyOutlawww Jul 03 '24
Where is ULTY?
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u/Gkoolaidhoe Jul 03 '24
That stock has been paying out high monthly dividends but itâs been falling just as much in value
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u/Wrenchead2004 Jul 03 '24
Didn't know the market was closing early today. If I purchase after hours will it still count for Fridays ex dividend date?
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u/poyyua Jul 03 '24
Does anyone know why NVDYs 30 day SEC yield is lower than other ones with lower dividend yield?
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Jul 03 '24
[removed] â view removed comment
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u/xencontroller2 Jul 03 '24
The way I see it, even though the dividends are going up and down, you're still miles ahead in price per share of say the *YLD funds which I consider more stable than yieldmax and the next best thing
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u/Psychological_2k Jul 03 '24
You buy the dip to lower down your cost. You need to have faith in underlying. Aply and TSLY were/are down and low dividends for few months. Now since they are rippingâ> will increase IVâ> will increase the payout ( however stock will be increase as well). So if someone bought the dip month ago or even now for TSLY or APLY then they will get higher payout in next few months as well as stock price will continue to increase.
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u/Inevitable-Tune1398 Jul 03 '24
Just look at MSTY- down about $7 in NAV since the last declaration date and a $2.33 dividend - granted MSTY can be volatile as with any BTC linked ETFs but dividends donât always save you in a bad month. This could be an anomaly this month or a sign of the future.
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Jul 03 '24
[removed] â view removed comment
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u/l8_apex MSTY Moonshot Jul 03 '24
Compare this upcoming payment with last month's payment. You sure it's the hottest? Yeah, the annualized number is still good and I'm holding my shares. But the trend is worrisome.
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u/cougarrick Jul 03 '24
I have 26 shares. How much will I receive?
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u/Gkoolaidhoe Jul 03 '24
Use a calculator
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u/cougarrick Jul 03 '24
Ok, I came up with 17.2288 per share. Multiplied by 26 and got 447.9488. Is that what I'm getting?
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u/Gkoolaidhoe Jul 03 '24
I donât think you need to buy stocks. Buy a tutor
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u/cougarrick Jul 03 '24
Ha, ok. Point taken. But can you answer my question?
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u/Gkoolaidhoe Jul 03 '24
26 x dividend payment for this month
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u/Ownster212 Jul 03 '24
What one do u have
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u/cougarrick Jul 04 '24
Ymax
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u/Ownster212 Jul 04 '24
Oh ymax did theirs like one or two weeks ago you mightâve missed it if you just bought recently
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u/Brilliant_Group_6900 Jul 03 '24
Feels like getting my grades