Investors in the YieldMax RDDT Option Income Strategy ETF (RDYY) are due $0.1297 per share on Oct. 30, 26.1% less than the fund’s preceding weekly distribution.
YieldMax announced the amount Wednesday, after setting the previous payment at $0.1754 on Oct. 21. Oct. 29 is both the ex-dividend date and the fund’s record date.
RDYY’s distribution rate stood at 50.42% based on the Oct. 27 close. The figure expresses the latest payout as an annual rate relative to the fund’s latest net asset value; it neither measures total return nor signals future payments. For the period ended Sept. 30, the fund reported a 2.90% 30-day SEC yield, which excludes income from options.
RDYY uses call spreads on Reddit Inc. (RDDT) shares in an effort to generate weekly income. The strategy may limit the fund’s participation in gains if Reddit shares rise, while leaving it exposed to losses if they fall. YieldMax warns that payment amounts may vary widely.
