On the day the CONY dividend was distributed (Friday), it was a 7.4% monthly payout - very happy with that. Today they announced the MSTY dividend and it is 8.4% of the pre-opening price. I am expecting a very good dividend in January based on the recent (last 7 days) price movement of COIN and MSTR (bitcoin price).
Gene, what do you think about these dividends?
Also, I have increased my position in MSTY because of the many news announcements regarding the US govt and some US states saying they will hold bitcoin in a strategic reserve. I don’t pretend to know what the price of bitcoin is going to do, but there are more news articles saying that bitcoin will be over $150k by the end of the 2025 year. Who knows? Not me but it is an educated investment guess (lol).
Gene, what do you think? I’m bullish bitcoin. Also buying small amounts in my bitcoin wallet…doc
That’s like being a little bit pregnant.
You might not be invested in Bitcoin but your investment is tied directly to it. I know you know this Gene but look at this chart. Especially 2020. That is when Bitcoin was clobbered. But like Doc I do expect bitcoin to go up this year and I did mention 200,000. I think Tom Lee is at $250000. We will see.
The price moves are sympathetic but I am receiving thousands of dollars of cash once a month.
While the small amount of capital is tied up, my risk of total loss is less since I have already added some cash to other positions like HD, CAT, BMY and others, left some as portfolio cash and I topped-off our 3 year expense cash cushion.
This is what I was expecting with the swoon in bitcoin.
I don’t know when their cut-off is. I suspect it might be Friday to give them time to close their period, do their internal checks and have their meeting to declare the dividend payments.
I am curious to see if the options prices get tighter as more people see these funds and maybe some copycat funds appear, if they haven’t already.
As the options become more “popular”, the profits will narrow.
Actually, the success of the funds themselves can cause this. More shares of the ETF’s sold means more option contracts must be made. More traffic, higher visibility. Etc …
I did more digging on the payment schedule. I was not understanding the 52 payments per year for YMAX, YMAG, etc vs the component ETF’s paying monthly.
I finally figured-out that the Monthly payers don’t pay monthly, they pay every 4 weeks. The “A”, “B”, “C” & “D” basically make 13 payments per year, not 12.
I recently added small positions in DIPS, PLTY and LFGY.
One thing about these funds is the “Thursday Morning Shock” when they open ex-div and there is a big red number on the screen.
This is a chart comparing how much MSTY has generated (NAV plus dividends) compared to owning MSTR and MSTR NAV. Owning MSTR is returning a better yield. The dividend ETF isn’t doing so badly however with a 145% total return since it’s inception. FYI…doc
In one SEP I reinvest. In the other SEP I have taken the dividends and bought MSTY. In the cash account I have spent some, paid taxes and reinvested some in MSTY…doc
edit: I have CONY in both SEP’s to clarify and the dividends are going to CONY or MSTY.
Yes, breakeven total invested (so far) with around 300% increase in shares. The dividend was 8% this month. Not using the actual share count but if i got 8 shares last March and my first dividend was April, I now have 25 shares with automatic reinvestment set up. So if I bought 8 shares for 175 dollars, i now have 25 shares worth around 175 at this mornings price of 7.50 . Its in a sep ira so no taxes and I havent had to start RMD yet. Just gonna let it grow for another 2 years and see what i end up with. I also bought MSTY on this dip. We will see what happens with bitcoin, COIN and MSTR over the next 12 months. I’m hoping that bitcoin will become some sort of reserve currency for states and nations. That and adding in that 19 million of the bitcoin have been mined leaving only some approximately 2 million left gives me some hope but what if its a big hoax and when the last bitcoin is mined and it all goes poof. There will be a lot of peeps saying I told you so…doc
Gene,
two ETF’s that are doing pretty good include QYLD and QYLG. Let me know what you think about these two. Monthly dividends and one paying over 10% and the other in the 30% annual range. I’m thinking about QYLG for my CONY/MSTY dividends - kind of a house (not the house note lol) money investment type of thing. Thanks…doc
Of the 2, QYLG would be my pick since it has a lower turn-over and it includes the growth side. I would guess it to be more “stable” over time.
This is similar to what I have been doing.
While I have flowed some cash to our expense cash cushion, most of the rest goes to other stock in our portfolio. When I get down to the the last of the cash, I put it into 1 or more shares of the YMAX funds we hold.
Lately, I have been favoring SDTY for the left-over cash.
I was looking over QYLG because I liked the higher return. The unusual thing is that QYLG had over $5 dividend once in December driving the total annual dividend up from something much lower to the almost 30% range. It does not bear up under closer scrutiny. I have held QYLD in the past and it was a reliable 10+% per year dividend ETF. FYI…doc
Hi Gene,
what I meant by unusual was that in other years they paid a very small dividend in December and dropped that annual dividend from a very attractive upper 20% range down to a much less attractive annual dividend ie they don’t do it every year…doc
