YieldMax Sets BABO Weekly Distribution at $0.0405 for Nov. 6 Payment

YieldMax set a $0.0405-per-share weekly distribution for its BABA Option Income Strategy ETF (BABO), up about 0.75% from the prior payment, with payment scheduled for Nov. 6.

The fund announced the distribution Nov. 4 and set Nov. 5 as both the ex-dividend date and the record date. The new amount is $0.0003 above the previous $0.0402 distribution, scheduled for payment Oct. 30. BABO’s previous weekly distribution was also set on a weekly schedule.

BABO’s distribution rate was 32.69% as of the Nov. 3 market close. The rate annualizes the latest distribution against the fund’s latest net asset value and does not represent total return. The fund’s 30-day SEC yield was 4.61% for the period ended Oct. 31; that measure excludes option income.

BABO seeks weekly income by selling call spreads tied to Alibaba Group Holding Ltd. (BABA). The strategy can limit gains if BABA rises while leaving the fund exposed to losses if the stock falls. YieldMax cautioned, “Distributions are not guaranteed.”