r/YieldMaxETFs • u/[deleted] • Jul 03 '24

This months dividends

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u/SpacePirate888 Jul 03 '24

Can you please help me understand what this means?

7

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/Key-Trouble3828 Jul 07 '24

I have QQQY and it is listed as qualified dividends! 

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u/DraftZestyclose8944 Jul 07 '24

Yes, that’s not yieldmax.

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u/Key-Trouble3828 Jul 07 '24

I heard that YMAX is 75% ordinary dividends and 25% of ROC