Desperate Investor With $50K Seeks 'The Highest Possible Dollar Amount Of A Dividend Payment' – 'What Fund Would You Buy?' Reddit Erupts - Tidal Trust II YieldMax MSTR Option Income Strategy ETF (ARCA:MSTY)

For many investors, dividend stocks are a great way to generate passive income while maintaining the possibility of capital growth. Dividend-focused stocks, ETFs, and funds yield periodic payouts, making them a favorite to those seeking regular cash flow, whether for retirement, extra income, or reinvestment.

Funds, in particular, are a prominent option for investors because they offer diversification, reducing the risk linked to individual stocks. One Reddit user has shared on the online discussion board that he’s faced with a dilemma regarding his investments: what fund should he buy to generate the highest possible dollar amount of a dividend payment next month?

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If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it?

The poster has $50,000 to invest and has little concern for long-term growth or stability. He wants a simple solution and is wondering if the Reddit community can point out a fund that meets his goal.

The community has provided insights for the investor, as well as mentions of possible solutions, so let’s dive deep into the comment section to see what the Redditors said.

Investor Wants His $50,000 in a Fund Generating the Highest Possible Dividend Amount by Next Month–Redditors Debate Best Options

YieldMax Funds Can be a Good Pick

Some users suggested YieldMax funds, which use covered call strategies on volatile stocks to yield massive monthly payouts, sometimes 90% to 120%.

“If you want degenerate, go all in on [YieldMax MSTR Option Income Strategy ETF MSTY]. Anywhere from 90%-120% distribution is paid out monthly, and the fund manager YieldMax basically just does synthetic covered calls on [MicroStrategy MSTR] to generate the massive premium, holding U.S. Treasuries as collateral,” a comment reads.

"If all you care about is getting the highest possible dividend payment next month, you would go all-in on a YieldMax fund. Probably MSTY or [YieldMax NVDA Option Income Strategy ETF NVDY] or something like that. Mind you, that’s a horrible way to ‘invest' as it’s really just gambling. There’s no telling what a single stock will end up doing over the course of a month. The dividend payment might not even make up for the price depreciation, so you could end up negative for the month in total returns," this Redditor suggested.

This commenter also recommended YieldMax funds, mentioning three options he considers are good picks for the poster’s target.

“If it's just gambling on the next month’s highest yield, I'd easily go with YieldMax, something like [YieldMax PLTR Option Income Strategy ETF PLTY], NVDY or MSTY or a mix of the three. Check which fund you believe more in and which yields are the highest and decide, but I think these three are among them,” he said.

Go for More Balanced But Still High-Yield Alternatives

Many users recommended the poster invest in covered call ETFs like JPMorgan Equity Premium Income ETF JEPI, NEOS S&P 500 High Income ETF SPYI or NEOS Nasdaq-100 High Income ETF QQQI, which offer high yields with less extreme risk when compared to YieldMax funds.

“‘Safest’ I’d go with [0DTE S&P 500 Covered Call Strategy ETF XDTE], the covered call fund based on the S&P that pays around 25% weekly and has remained pretty surprisingly [net asset value] stable and in line with [SPDR S&P 500 ETF Trust SPY] on total returns,” a commenter wrote.

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A Redditor replied to the comment above, saying, “Still, I’d do JEPI, SPYI, or [Amplify CWP Enhanced Dividend Income ETF DIVO] before XDTE.”

“Safer but still high? [JPMorgan Nasdaq Equity Premium Income ETF JEPQ]/JEPI/SPYI/QQQI/[WisdomTree PutWrite Strategy Fund PUTW]. Smart? [Schwab U.S. Dividend Equity ETF SCHD],” a user said.

A commenter suggested an entirely different ETF, mentioning that while he’s also invested in high-yield assets, he keeps these allocations to a minimum.

“[REX FANG & Innovation Equity Premium Income ETF FEPI] for that 30% yield, or SPYI, or QQQI. I only keep 1%-3% of my portfolio in yield traps just for the dividend boost to my portfolio. Overall, I’m happy with that,” he wrote.

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