"Don't Expect Any Guarantees Without a doubt, what attracts investors to the YieldMax AMD Option Income Strategy ETF ( NYSEARCA:AMDY) is its advertised 54.65% annualized distribution rate. Since AMD stock doesn't pay any dividends or cash distributions at all, the AMDY ETF seems like a much better choice. Not only that, but the YieldMax AMD Option Income Strategy ETF pays out cash distributions on a weekly basis. Just imagine how much passive income you could earn through compounding if you reinvested the distributions every week."
"Don't pull the trigger and buy AMDY shares yet, though. For one thing, I need to provide you with a quick overview of how the fund manages to generate a nearly 55% distribution rate. First, the YieldMax AMD Option Income Strategy ETF uses synthetic option strategies to indirectly replicate the effect of holding AMD shares. Also, the AMDY ETF sells covered call options and/o"
Advanced Micro Devices is consistently profitable and has delivered significant shareholder returns, yet the company does not pay dividends. YieldMax offers an AMD-based ETF (AMDY) that promises dividend-like cash distributions with an advertised 54.65% annualized yield and weekly payouts. The fund generates distributions by using synthetic option strategies and by selling covered call options to replicate exposure to AMD stock. The advertised yield reflects option income and may not represent sustainable or guaranteed cash return. The ETF involves complex mechanics, frequent payouts, and potential risks that can affect principal and yield. Careful due diligence is necessary before investing.
Read at 24/7 Wall St.
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