AMDY and MSTY - my 2 year experience
Disclaimer - I don't know what I'm talking about and am not a financial advisor. Most of this is probably wrong.
I wrote some code to compare divs vs the underlying using a same day purchase and amount.
AMDY is the YM I have had the best return with as a percentage but compared to buy and hold this tells the story of the capped upside like no other.
I bought a small lot of AMDY Wednesday because the underlying is doing well. I sold it Friday at a small profit and adding the divs out performed AMD in that time span. I did this to test my assertion that div hoping can be successful.
And then there is MSTY. The NAV erosion is real. But so are the divs.
I had a chance to sell this position for a 30k profit but I held instead.
I have had it longer than AMDY so more divs. Each of these funds hit a break even and then the divs feel like real returns on a sunk cost.
This position has well exceeded its costs in total returns and has paid out 2500 in the last 30 days.
I cannot buy a rental house, pay it off in 2 years and get that margin.
FYI I take most divs and buy NVDA at any dip.
Feedback welcome.