Is This 89% Dividend Too Good to Be True? Let’s Break It Down

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Is This 89% Dividend Too Good to Be True? Let’s Break It Down

It’s a trap I see investors fall into all the time: pouncing on yields that are so high as to be, frankly, absurd. Case in point: the 89% (not a typo!) yielder we’re going to talk about today.

I get where the temptation of a payout like that comes from. Inflation is sticking around. The job market? Precarious, to say the least, with AI replacing humans at an accelerating pace. Another disappointing jobs report, released on Friday, sure doesn’t help here, either.

At a time like this, an 89% annualized payout sounds like a dream, especially if you’re looking to get to (and hopefully stay in!)… Read more

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Yes, This 85% Dividend Is as Ridiculous as It Sounds

Every so often here at Contrarian Outlook, 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.

Before I go further, I should say that 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.”… Read more

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