What is MSTY's actual yield?

MSTY's TTM yield has ranged from 40% to over 100% depending on MSTR's volatility and the period measured. High volatility = higher option premiums = higher distributions. Low volatility periods can cut distributions significantly. The yield shown uses trailing twelve months but MSTY's distributions are highly variable — some months pay $4+/share, others $0.50.

Does MSTY lose value over time?

Yes — MSTY has experienced significant NAV (price) erosion since launch. The covered-call strategy sells upside potential in MSTR to generate income. When MSTR rises sharply, MSTY participates less but still erodes. When MSTR falls, MSTY falls similarly but with less recovery. Historical NAV erosion is approximately 25–35% annually on average, though this varies significantly with market conditions.

Is MSTY good for income?

MSTY generates high monthly cash income in absolute dollar terms, but this income is partly funded by returning your own capital (NAV erosion). A $10,000 MSTY position might generate $4,000–$8,000/year in distributions while declining to $7,000–$8,000 in value by year-end, leaving you roughly flat or slightly ahead — before taxes. It is not the equivalent of a 40%+ risk-free yield; total return is the correct metric.

How are MSTY distributions taxed?

MSTY distributions are non-qualified — they are taxed as ordinary income at your marginal federal rate, not the preferential 0/15/20% qualified dividend rate. For someone in the 24% bracket, a $5,000 MSTY distribution triggers $1,200 in federal taxes. This significantly impacts after-tax total return, especially in taxable accounts. MSTY is better suited for tax-advantaged accounts (Roth, Traditional IRA).

DRIPing MSTY partially offsets NAV erosion by using distributions to buy more shares at lower prices. However, in a taxable account, you still owe taxes on distributions before reinvesting — reducing the amount reinvested. In a Roth IRA, full DRIP without tax drag is more effective at slowing erosion. But even with full DRIP, MSTY's long-term trajectory depends entirely on MSTR's performance.

MSTY Dividend Calculator

Calculate MSTY monthly income, model NAV erosion over time, and understand what the 40–100% yield actually means for your total return. YieldMax MSTR covered-call strategy — income comes at a cost.

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Portfolio Mode

Multi-position income calendar

Why use our online MSTY Dividend Calculator?

MSTY distributes 40–100% annually but loses NAV over time. This calculator shows both sides: the income you receive and the capital erosion you absorb — essential context before investing.

How to use MSTY Dividend Calculator

1
See current monthly income
MSTY's current TTM yield and distribution range are pre-loaded. Enter shares to see estimated monthly income — and note the high/low range, which can be $0.50 to $4.50+/share in a single month.
2
Review the variance warning
MSTY distributions vary dramatically month-to-month based on MSTR volatility and option premiums. The warning box shows the 12-month distribution range — budget for the low end, not the high.
3
Model NAV erosion in DRIP mode
Switch to DRIP mode. Set the NAV erosion rate (historical ~28%/year for MSTY). The projection shows how your share price declines while distributions continue.
4
Compare total return
In DRIP mode, compare the no-DRIP scenario (taking cash while NAV drops) vs reinvesting distributions to partially offset erosion. Neither path recovers full principal if NAV erosion is severe.
5
Understand tax treatment
MSTY distributions are non-qualified (return of capital + option income). In a taxable account, select your marginal rate in DRIP mode — tax drag reduces the effective reinvestment amount each year.

The MSTY income math: what you're actually getting

At 60% annualized yield and $10,000 invested, MSTY pays approximately $6,000/year in distributions. But if NAV erodes 28% annually, your $10,000 position is worth ~$7,200 by year-end. Net result: $6,000 received - $2,800 lost = $3,200 real gain (32% on the original $10,000). That's still exceptional, but it's not 60%. The DRIP mode makes this erosion-adjusted math visible across any time horizon.

MSTY in a Roth IRA vs taxable account

The tax treatment gap for MSTY is larger than almost any other ETF. In a taxable account with 24% marginal rate, approximately $1.20 of every $5.00 MSTY distribution goes to taxes — reducing effective yield by nearly a quarter. In a Roth IRA, you keep the full distribution, reinvest the full amount, and pay zero tax on withdrawal. For MSTY specifically, the Roth advantage is substantial and should strongly favor tax-advantaged placement.

Frequently Asked Questions

What is MSTY's actual yield?: MSTY's TTM yield has ranged from 40% to over 100% depending on MSTR's volatility and the period measured. High volatility = higher option premiums = higher distributions. Low volatility periods can cut distributions significantly. The yield shown uses trailing twelve months but MSTY's distributions are highly variable — some months pay $4+/share, others $0.50.
Does MSTY lose value over time?: Yes — MSTY has experienced significant NAV (price) erosion since launch. The covered-call strategy sells upside potential in MSTR to generate income. When MSTR rises sharply, MSTY participates less but still erodes. When MSTR falls, MSTY falls similarly but with less recovery. Historical NAV erosion is approximately 25–35% annually on average, though this varies significantly with market conditions.
Is MSTY good for income?: MSTY generates high monthly cash income in absolute dollar terms, but this income is partly funded by returning your own capital (NAV erosion). A $10,000 MSTY position might generate $4,000–$8,000/year in distributions while declining to $7,000–$8,000 in value by year-end, leaving you roughly flat or slightly ahead — before taxes. It is not the equivalent of a 40%+ risk-free yield; total return is the correct metric.
How are MSTY distributions taxed?: MSTY distributions are non-qualified — they are taxed as ordinary income at your marginal federal rate, not the preferential 0/15/20% qualified dividend rate. For someone in the 24% bracket, a $5,000 MSTY distribution triggers $1,200 in federal taxes. This significantly impacts after-tax total return, especially in taxable accounts. MSTY is better suited for tax-advantaged accounts (Roth, Traditional IRA).
Should I DRIP MSTY?: DRIPing MSTY partially offsets NAV erosion by using distributions to buy more shares at lower prices. However, in a taxable account, you still owe taxes on distributions before reinvesting — reducing the amount reinvested. In a Roth IRA, full DRIP without tax drag is more effective at slowing erosion. But even with full DRIP, MSTY's long-term trajectory depends entirely on MSTR's performance.

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