Every so often, we get questions from readers about investments sporting yields that are, frankly, ridiculous.
Case in point: The 85% forward yield (as of this writing) on a fund called the YieldMax Ultra Income Strategy ETF (ULTY): Eighty. Five. Percent.
Think about that for a second: With a 85% yield, you’re getting your entire upfront investment back in about a year. Pretty sweet deal, right? Well, not so fast.
When it comes to dividends, one thing we demand at my Contrarian Income Report advisory is that a stock or fund at least “returns its yield.” When I say “return its yield,” I mean that we want—at a minimum—the price to remain steady as we collect our high dividends.
ULTY? Well, what its dividend giveth, its share price taketh away—and then some! Check this out.
This post originally appeared at Contrarian Outlook.