Monthly Dividend Paying ETFs

[jimmyk]

Just some food for thought.
https://www.etf.com/sections/features/j ... -call-etfs
Not judging just throwing out some info for consideration. I know these are popular ETFs. Investing is highly individualized as are risk tolerances.

Best of luck.

[Sig]

I read what Benn Eifert said at ETF.COM and this comes to mind:
“What a study concludes depends on who is funding the study.”
Benn seems to be saying that Vanguard VOO is the way to go. But to accomplish what I am doing with 5 Yieldmax ETFs, that are generating a $5,000.00 monthly return with an initial investment of $63,000.00, you would need to buy 9000 shares of VOO at a cost of $5,292,000.00 and it would generate a $14,740.40 quarterly dividend or close to the $15,000.00 three-month payout of the Yieldmax ETFs. I also went to the etf.com ETF Screener and the page that came up displayed 6 Vanguard ETFs out of 10 on the page.

Of course, some of the things he pointed out need to be taken into account and as more option-based ETFs are created, the now high dividends may become watered down and if that happens, we may have to be satisfied with a smaller dividend income or find another vehicle.

[Scarfinger]

I wounder if this is like the Small Cap Value studies. Looking back in history you can find the outperformers. After the study was published the outperformance droped by 50% because of market efficeincy and with more time has been even less effective from what I have researched.

Once the option Dividend yield strategies get more popular... I am guessing their performance will decrease to the mean? or something like that, with market efficincy at work.

[Bubba]

For those still "bi" curious to well yielding dividend ETFs (not necessarily monthly), you can also look here https://www.ishares.com/us/insights/bond-buy-write-etfs and here https://www.paceretfs.com/products/pace ... ier-series.

I don't use any of them because I don't see the value at this point in my life. Perhaps if I had a million to throw around, then I might ascribe to something like that.

Enjoy!

[Sig]

Here is the dividend income ETFS, TSLY, MSTY, MARO, CRSH and CONY generated for the month of August. One thousand shares of each of those ETFs bought in July were about $63,000.00 for all five.

Symbol Name Shares Dividend Date Dividend Pay
CRSH YieldMax Short TSLA Option Income Strategy ETF 1000 0.1949 8-Aug-25 $194.90
TSLY YieldMax TSLA Option Income Strategy ETF 1000 0.3005 8-Aug-25 $300.50
MARO YieldMax MARA Option Income Strategy ETF 1000 1.0043 15-Aug-25 $1,004.30
CONY YieldMax COIN Option Income Strategy ETF 1000 0.3438 21-Aug-25 $343.80
MSTY YieldMax MSTR Option Income Strategy ETF 1000 1.0899 28-Aug-25 $1,089.90

August Total $2,933.40

August total with July Dividends reinvested $3,172.74
Total for July (reinvested) and August Dividends $8,180.74

[Bubba]

Here is the dividend income ETFS, TSLY, MSTY, MARO, CRSH and CONY generated for the month of August. One thousand shares of each of those ETFs bought in July were about $63,000.00 for all five.

Symbol Name Shares Dividend Date Dividend Pay
CRSH YieldMax Short TSLA Option Income Strategy ETF 1000 0.1949 8-Aug-25 $194.90
TSLY YieldMax TSLA Option Income Strategy ETF 1000 0.3005 8-Aug-25 $300.50
MARO YieldMax MARA Option Income Strategy ETF 1000 1.0043 15-Aug-25 $1,004.30
CONY YieldMax COIN Option Income Strategy ETF 1000 0.3438 21-Aug-25 $343.80
MSTY YieldMax MSTR Option Income Strategy ETF 1000 1.0899 28-Aug-25 $1,089.90

August Total $2,933.40

August total with July Dividends reinvested $3,172.74
Total for July (reinvested) and August Dividends $8,180.74

I just played with the total returns from the NVDA and NVDY stock/ETFs. Interesting, but the return is much better from the stock...of course. https://testfol.io/?s=dNAxqeWqogw

[Sig]

When I found the monthly dividend ETFs I realized that I could generate a monthly income with a fairly small investment. NVDA was mentioned. For 1000 shares of NVDA you would need $179,000.00. 1000 shares of NVDY would be $16,333.00. In the past 12 months 1000 shares of NVDY monthly dividends have averaged $1200.00. So, in just a little over a year NVDY has paid for itself in dividends.
Here is the dividend income ETFS, TSLY, MSTY, MARO, CRSH and CONY generated for the month of September. One thousand shares of each of those ETFs bought in July were about $63,000.00 for all five. I have broken down 1000 share dividend returns and reinvested dividend returns.
Symbol Name Shares Dividend Ex-Date Dividend Pay
Sept Group A
TSLY YieldMax TSLA Option Income Strategy ETF 1000 0.3926 4-Sep-25 $392.60
CRSH YieldMax Short TSLA Option Income Strategy ETF 1000 0.1624 4-Sep-25 $162.40
Group B
MARO YieldMax MARA Option Income Strategy ETF 1000 0.9376 11-Sep-25 $937.60
Group C
CONY YieldMax COIN Option Income Strategy ETF 1000 0.4522 18-Sep-25 $452.20
Group D
MSTY YieldMax MSTR Option Income Strategy ETF 1000 1.0899 25-Sep-25 $1,089.90

Sept Total $3,034.70

Total July Thru Sept Dividends $10,976.10

Dividend Reinvested
Symbol Name Shares Dividend Ex-Date Dividend Pay
Sept Group A
TSLY YieldMax TSLA Option Income Strategy ETF 1101.10 0.3926 4-Sep-25 $432.29
CRSH YieldMax Short TSLA Option Income Strategy ETF 1094.00 0.1624 4-Sep-25 $177.67
Group B
MARO YieldMax MARA Option Income Strategy ETF 1099.00 0.9376 11-Sep-25 $1,030.42
Group C
CONY YieldMax COIN Option Income Strategy ETF 1139.00 0.4522 18-Sep-25 $515.06
Group D
MSTY YieldMax MSTR Option Income Strategy ETF 1147.25 1.0899 25-Sep-25 $1,250.39

Sept Total $3,405.82

Total July Thru Sept Dividends $11,586.57

[sprakass]

Thank you for sharing.

[Sig]

Here is the dividend income ETFS, TSLY, MSTY, MARO, CRSH and CONY generated for the month of October. One thousand shares of each of those ETFs bought in July were about $63,000.00 for all five.
YIELDMAX converted all ETFs as of October 16th to weekly dividends.

Dividend totals for 1000 shares of each of the above ETFs.
October Total $5,736.40
July Thru October Total $16,712.50

Totals for all dividends reinvested.
October Dividend Reinvested Total $6,936.91
July Thru October Reinvested Total $18,523.48

[Bubba]

So, again, playing with the returns, I found that the single stocks that they replicate do much better:

https://etfdb.com/etfs/issuers/yieldmax ... esc&page=1

If you check any of them, you get a better return and if you hold it for a year, less taxes. The only question I have is what advantage do these ETFs hold other than gaining income for someone? I mean, i could hold the stocks and do even better.

Just curious.

Thanks!

[Sig]

Bubba, you are right, the underlying stocks for these ETFs can increase in value much more than the ETFs. Let’s look at the underlying stocks for TSLY, MARO, CONY and MSTY. CRSH is a short ETF for TSLA and was included in the batch as a TSLA hedge. The stocks are TSLA, MARA, COIN, and MSTR. I started this topic July 9th and 1000 shares of each of the ETFs total cost was about $63,000.00. 1000 shares of each of the stocks if bought at an average price on July 9 would cost $1,082,500.00. On October 30 those stocks were worth $1,099,900.00 for an increase in value of $17,400.00. The ETF dividend income for the same period was $16,712.50 and when reinvested it was $18,523.48.

You are correct that if in a regular brokerage account, you were using these ETFs to generate a passive income then yes you would have to pay taxes on what you make. If you are still young and retirement is 20 years or more away, then, these ETFs in an IRA with the dividends reinvested could mean a sizable increase even if you never added to the IRA. And reinvesting the dividends will cost average the ETFs over that period of time. The value of the IRA starting with the $63,000.00 initial investment and reinvesting the dividends could generate $500,000.00 or more over a 20-year period. If you had done the same in a Roth IRA, at 59 ½ you stop reinvesting, and you could be making $40,000.00 a month in dividends.