Buying MSTY Before Dividends Worked Most of the Time

Core Insights - MSTY has gained significant popularity among retail investors, particularly on the YieldMaxETFs subreddit, as a top choice for dividend yield [1][2] - A Redditor conducted a data-driven analysis revealing that buying MSTY before the ex-dividend date often yields better returns than waiting [3][5] Investment Analysis - The analysis tracked MSTY's pre-dividend price, dividend amount, ex-dividend drop, and subsequent trading over six months [4][8] - Results showed that in four out of six months, purchasing MSTY before the dividend payout resulted in positive returns, with March yielding a notable 12.77% total return despite a 7% dividend yield [9] - April was the only month with a negative return, showing a total return of -0.30% despite a solid dividend yield [9] Market Behavior - MSTY is characterized as an options-income fund that performs well in volatile markets, offering substantial distributions in the 6-10% range [10] - The "buy the dip for income" mentality is prevalent among income-focused investors, who seek lower entry points to maximize dividend payouts [11] Future Considerations - Diversification is emphasized as a key strategy to mitigate risk, suggesting that no single investment should dominate a portfolio [13] - It is recommended to reinvest high distributions from MSTY into stocks with better growth potential, rather than solely accumulating more MSTY shares [14] - Regular reassessment of investment strategies is advised to adapt to changing market conditions [15]