Add as a preferred source on GoogleYieldMax Sets RDYY Weekly Distribution at $0.1297, Down 26%
Oct. 29 is both the ex-dividend and record date, and RDYY’s distribution rate was 50.42% as of the Oct. 27 close.
YieldMax set a $0.1297-per-share weekly distribution for the YieldMax RDDT Option Income Strategy ETF (RDYY), 26.1% below its previous distribution, with payment scheduled for Oct. 30.
YieldMax announced the amount Wednesday at 6:55 a.m. ET (10:55 UTC). The previous distribution was $0.1754, announced Oct. 21.
RDYY’s distribution rate was 50.42% as of the Oct. 27 close. The rate annualizes the latest distribution against the fund’s most recent net asset value; it does not represent total return or indicate future distributions. The fund’s 30-day SEC yield was 2.90% for the period ended Sept. 30 and excludes option income.
The actively managed ETF sells call spreads on Reddit Inc. (RDDT) shares to seek weekly income. The strategy may capture only part of RDDT’s gains and may leave the fund exposed to losses if the stock falls. YieldMax said, “Distributions are likely to vary greatly in amount.”
The fund set Oct. 29 as both the ex-dividend date and the record date. Payment is scheduled for Oct. 30.
Enna Lee
ReporterEnna Lee reports on investing and digital-asset markets for TokenPost. Send corrections or tips to info@tokenpost.com.