Stop Reinvesting dividends! Do this instead.

If you auto drip your dividends you are missing out on massive upside.

Being more hands on will lead to much higher gains. Here’s why. 🧵👇 High yield funds that yield 50-100% are all going to decay over time.

While total returns will still be great you’re missing out on a ton of upside.

The cheat code is moving half of your dividends to growth & lower yield funds.

They told you all high yield funds have NAV erosion.

They are wrong.

Here’s the 5 of the best set and forget high yield funds. 🧵👇 1) $BTCI

The NEOS Bitcoin High Income ETF.

• 28% Dividend Yield

• 27% NAV gain since inception

The high yield portfolio blueprint: 🔵

How to build a sustainable high yield portfolio. 🧵👇 1. Single stock funds

These will typically be your highest yield.

1️⃣ Underlying is crucial. Worry about the best companies not the highest yield.
2️⃣ Entry is everything especially on single stock tickers
3️⃣ Never have one single stock ticker heavily above 10% of your portfolio

So Your Interested in High Yield?

Debunking All Misconceptions 🧵👇

NAV Erosion:

Always the critics first complaint but rarely truly understood. As you’ve probably noticed not all high yield funds but many have a down trending chart. The income is generated through capping the upside while you still have full downside. This creates the downtrend. But what isn’t understood is that true NAV Erosion is when total return is negative.

Here’s an example of two funds with what is claimed to be “NAV Erosion”. This is why I say you need to view these through a total return chart.
ROC: “But your just getting returned your own capital”

ROC is traditionally seen as a red flag because it means a companies dividend is your own money being returned to you. With high yield funds that is not the case. This ROC is actually structural not destructive.

Yield Max does what they can to avoid conditions that cause options premiums to be considered income and taxed. This makes ROC a huge advantage. 100% ROC? Guess what you’re most likely not paying any taxes until your initial investment is house money.