Originally Posted by Hog's Gone Fishin:
I show MSTY on my spreadsheet on 5/3/24 at 29.49 it's paid dividends of 2.52, 3.03, 2.33 since for a total of 7.88 which is a 26.7% return on investment in 3 months meaning in 12 months all your initial investment is returned and everything after that is free money, Doesn't matter if the share price has gone up or down. It's all free money after that. That's the way dividend investors look at these.
The current stock price is 25.26, for a "loss" of 14.3% on the capital. At some point if the capital gets eaten up, they'll do a reverse split like TSLY has already had to do and when you lose shares, you lose dividend income paired with loss in capital.
You are still taking on inherent downside risk while limiting the upside you could be getting on a major move up like NVDA has shown. It just makes little sense.
Using the "dividend" as free money argument is so misleading when capital (share price) continues to decline with downside moves.
I think if you time an entry well you could do well for 6-12 months, but then I would move on. If you had picked TSLY last year, you'd have been fucked. [Reply]
Originally Posted by lewdog:
SPYI QQQY FEPI are ones you should maybe consider. Not one specifically for NVDA as the underlying and such.
Nope, I've run those, Yes they are considered safe but they will take forever to build anything.
What people can't understand and it IS difficult to see with simple calculation is that when you throw a moderate sum of money at the right ones you have to realize that every time you reinvest dividends you're now getting dividends off of dividends and the next month you're getting dividends off your original investment and dividends off your last months dividends and then dividend off your current dividends. It creates a snowball that becomes massive quickly.
I've run all the numbers through spreadsheets to see how it develops. I took a set of funds that pay week 1 and reinvested those into funds that pay week two , then week two into week 3 , then week 3 into week 4 and then week 4 into week one and it gave me this:
In June of 2024 monthly dividend starting with I believe it was a $17,000 investment was a $1,300 pay out, by december it was a $1638 monthly pay out
December of 2025 $3200
December of 2026 $5500
December of 2027 $9650
December of 2030 $54,000
December of 2032 $174,000
December of 2034 $546,000
December of 2035 $975,000
Taxes were not figured in accordingly so take that into consideration, it's just to illustrate the snowball created by dividend reinvestment.
People can't see that . There are people in the High Yield community achieving close to 1 Million a month right now. That's why I want to really kick my snowball into high gear here real soon. [Reply]
At this point I feel like I'm holding TSLA just because doing taxes on stock sales is really fucking annoying to me even though it's simple (even though the auto filler literally never works).
I even find myself laughing at hardcore TSLA holders when stupid shit happens with Elon/Tesla updates even though I'm a holder myself. What a situation I find myself in. [Reply]