Eligible shareholders in the YieldMax MSTR Performance & Distribution Target 25 ETF (MSST) are due $0.1345 per share on Oct. 21, below the previous week's $0.1501 distribution.
Under the Oct. 19 announcement, shares went ex-dividend on Oct. 20, when the fund also determined its shareholders of record. YieldMax scheduled the payment for Oct. 21.
YieldMax's preliminary breakdown classifies 99.45% of the distribution as return of capital and 0.55% as income. The firm says those estimates may change for tax reporting. It warns that returning investors’ capital can reduce the fund’s net asset value and trading price over time.
YieldMax says MSST obtains exposure to Strategy Inc. through options rather than owning the company’s shares directly. The fund targets a 25% annualized distribution rate, but YieldMax says that target is not guaranteed and does not represent total return. The firm also warns that the options strategy can limit some gains while leaving investors exposed to losses if Strategy shares fall.
