Yeah the way I look at it, if I lose 50% of capital to maintain high yield, then its all good. It is almost expected to be sustainable. It hasn't worked out like that however, as according to my spreadsheet, if you bought msty at launch your position would be: Start date 22-Feb-2024 10-Jun-2025 Price 21.19 Investment $100,000 Shares 4,719 Unrealized gains/loss $94.38 Dividends received $181,069.37 Yield 181.07% NAV $281,164 Monthly income $12,071.29 (No drip) Even if you bought at the highs: Start date 28-Mar-2024 10-Jun-2025 Price 42.99 Investment $100,000 Shares 2,326 Unrealized gains/loss -$50,662.94 Dividends received $89,250.06 Yield 89.25% NAV $138,587 Monthly income $5,950.00 (No drip) However if you bought at the recent highs Start date 20-Nov-2024 10-Jun-2025 Price 44.40 Investment $100,000 Shares 2,252 Unrealized gains/loss -$52,229.73 Dividends received $41,354.50 Yield 41.35% NAV $89,125 Monthly income $5,169.31 (No drip) So as usual, timing is everything.
How about some preferred stocks? The best performing kind Some mstr bulls are treating STRK and STRF as guaranteed risk-free alternative to US Treasuries with 8% and 10% yields Unfortunately the fixed income investors, are starting to figure it out, some mstr bulls are saying these things will eventually yield less than US 30yr Tresuries They are up 20-30% the past few months, trading above par and still going up, the preferred shares price go up, the effective yields go down As an aside, they were designed using AI new one that's about to come out is STRD, the "junk" bond version of the mstr preferred stocks, due to non-guaranteed dividends
Projected 1-Year P&L — $100K Investment (BTC @ $250K by Nov) | Asset | Entry Price | Projected Price | Shares | Capital Gain | Dividends | Net P&L | Total Return | |---------|-------------|-----------------|------------|-----------------|----------------|----------------|---------------| | MSTY | $21.00 | $50.00 | 4,761.90 | $138,095.24 | $97,050.00 | $235,145.24 | +235.15% | | MSTR | $370.00 | $1,350.00 | 270.27 | $264,323.29 | $0.00 | $264,323.29 | +264.32% | | IBIT | $59.00 | $120.00 | 1,694.92 | $103,000.00 | $0.00 | $103,000.00 | +103.00% | Projected 1-Year P&L — $100K Investment (BTC @ $250K by Nov, with MSTY DRIP) | Asset | Entry Price | Projected Price | Shares | Capital Gain | Dividends Reinvested | Net P&L | Total Return | |---------|-------------|-----------------|------------|-----------------|-----------------------|----------------|---------------| | MSTY | $21.00 | $50.00 | ~8,800 | $255,000.00 | DRIP (all reinvested) | $255,000.00 | +255.00% | | MSTR | $370.00 | $1,350.00 | 270.27 | $264,323.29 | $0.00 | $264,323.29 | +264.32% | | IBIT | $59.00 | $120.00 | 1,694.92 | $103,000.00 | $0.00 | $103,000.00 | +103.00% |
Following MSTR, MSTY is going up days before the July 3 dividend. For me it's a fairly significant gain and I'm thinking... Why not sell my holding after the dividend drops and get back in within 30 days when the share price drops back a bit. What's your thought?
Right, but I will buy back the stock before the August dividend. The stock gain is close to the dividend amount.
Are you saying you're going to sell right after the dividend? Or are you saying you're going to sell now to collect your capital gains before the dividend adjustment?
Timing a dividend stock is not so easy, and it's not always on the day of ex dividend July 2 is the last day to purchase msty, but you do not get the dividend until July 4, and if you are selling on July 3 because of the drop when market opens, I've seen msty perform well during the day after announcement due to mstr share price going up, from my memory more than 50% of the dividend amount is recovered If you want to time msty, it may happen a week 2 weeks, after the dividend, what you are really timing is mstr, as it follows the price action of mstr shares One last mention on msty, I read somewhere that there will be 2 distribution announcements in July so if you come back in August, you might miss the one at the end of July If you are concerned about capital preservation but still want dividends, then might want to check out my thread on the Fixed income section for mstr preferred shares strk and strf are the best performing preferred shares since issuance and strk has outperformed s&p, mstr and bitcoin since issuance It seems investors are waking up that it's an undervalued risk-adjusted asset https://www.elitetrader.com/et/thre...ed-shares-fixed-income-near-risk-free.385352/