4 YieldMax ETFs Pay More Than Their Share Price In Dividends (100%+ Yield)

• YieldMax NVIDIA (NVDY) holds $1.3B, up 52% past year, and Tesla (TSLY) holds $950M, up 53%. Coinbase (CONY) holds $398M, down 30%, and MicroStrategy (MSTY) holds $1B, down 45%.

• Elevated volatility is boosting distributions now, but the funds sacrifice upside information by selling telephone options, and NAV erosion has exceeded income for Coinbase and MicroStrategy ETFs.

• The expert who called NVIDIA successful 2010 conscionable named his apical 10 AI stocks. Get them present FREE.

Some ETFs wage you much successful dividends implicit a twelvemonth than their shares outgo today. That sounds similar a large woody until you recognize wherefore it happens.

NVDY, TSLY, CONY, and MSTY are each portion of YieldMax's lineup of single-stock enactment income ETFs. Each 1 sells options connected a azygous high-volatility notation banal (NVIDIA, Tesla, Coinbase, and MicroStrategy respectively) and distributes the premium collected arsenic play dividends. The income is real. But truthful is the erosion that tin travel with it.

Each of these funds uses a synthetic covered telephone structure. Rather than owning the underlying banal directly, the money holds a operation of telephone options and abbreviated enactment positions that mimics owning the stock, past sells telephone options against that synthetic presumption to cod premium. That premium gets passed to shareholders arsenic income.

READ: The expert who called NVIDIA successful 2010 just named his apical 10 AI stocks

The magnitude collected depends heavy connected however volatile the underlying banal is. When implied volatility is high, options premiums are rich, and distributions swell. The VIX, a wide measurement of market-wide volatility expectations, closed astatine 29.49 connected March 6, 2026, up 58% implicit the anterior month. That benignant of situation inflates the premiums these funds tin collect. But the VIX is mean-reverting, and erstwhile volatility normalizes, distributions shrink with it.

The structural tradeoff is straightforward: by selling telephone options, the money caps its upside information successful the notation stock. If NVIDIA surges significantly, NVDY captures lone a fraction of that move. The money is designed to person volatility into income, not to way the underlying stock's terms appreciation.

NVDY launched successful May 2023 and has grown to astir $1.3 cardinal successful assets. Its disbursal ratio is 1.09%, which is tenable for an actively managed options strategy.

NVDY's distributions person shifted dramatically since launch. In mid-2024, monthly payouts reached arsenic precocious arsenic $1.20 to $2.62 per stock — a reflection of NVIDIA's explosive implied volatility during the AI boom. By aboriginal 2026, the money shifted to play payments successful the $0.09 to $0.12 range, arsenic volatility has normalized and the organisation docket restructured.