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Alias Born 08/01/2022

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Saturday, 08/20/2022 8:50:46 PM

Saturday, August 20, 2022 8:50:46 PM

Post# of 47076
Hi Ray,

I'm new to AIM investing, but I will give you my opinion, for what its worth. But I'm not sure that QYLD would be a great choice for AIMing. I'm fresh blood here, so maybe I'm not your best choice. My opinion is that it might not be the best because those dividend ETFs, especially the ones that sell at the money calls like QYLD, tend to have an overall capital depreciation over time with regard to their share price. They do throw off a lot of dividends, but the share price over time is going to erode because selling at the money calls doesn't give the stock any room to appreciate before it gets called away.

I think it's a fine ETF if you're looking for dividends only, or possibly income. However, I think that because the share price tends to drift lower over time, You would end up consistently buying shares and end up depleting your cash reserve with no hope of further appreciation in the share price (Strength) which to sell against. Also, the ETF is only been around a few years, maybe since 2015 or 2016. Not sure if that's enough data to feel good about AIMing it or not. The chart on that thing shows a consistent drift lower. I have absolutely nothing against QYLD as a dividend machine, I just feel like within a few years you'd be fully invested with all of your capital...... without hope of selling the shares at a profit. This wouldn't allow you later deploy that profit to repurchase future shares at a discount.

Just my opinion, does that make sense?

Dan

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