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Dividend strategy for beginners

$QQQY I saw yesterday that the dividend for this month will be €0.51, the price then fell by about €0.50 today, I also noticed that there is always a price jump downwards on the 1st of the month with this etf, so this etf is definitely a dividend trap, because you don't generate dividends with it (technically you don't because the etf trades with options and you get the option premiums) you just get your invested money paid out again.... i would definitely advise against it, unless you want to watch your money burn 💰 🤦‍♂️

4 Commenti

Hebel-Horst@DoppelSchlechtMinus

This is the basic principle of distributing ETFs. If you don't want to have your money transferred back to you regularly, use accumulators.

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ThomasHH@ThomasHH

Dividend payments are always deducted from the share price. Logically, the value of the company falls as the dividend is paid out. However, most dividend stocks make up the discount within a few weeks.
When it comes to dividends, I personally only invest in individual shares and not in ETFs. I have no influence on the composition of ETFs.
You can either reinvest the dividends you receive (if they add up to more than 51 cents) or you can use them as additional passive income.
I have already built up several thousand euros a month with the latter. So it pays off in the long term.

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MarTheRadi@marda304

The ETF mentioned is quoted in USD. Your price and your dividend are shown in euros. As the $965275 EURUSD rises by 0.71% today, the value of the ETF falls accordingly. Please never neglect exchange rates!
And of course, the big end is the ex-day today. But this is not a trap, it is simply stock market math.

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Mfan@Diphunter

Not quite correct, based on the fact sheet you can see the daily price-adjusted return which is about 0.35% per day, pa it would be 27% quasi what you get back on the paid-in capital, of course the price always falls but you get 127% of your capital paid out cumulatively by the end of the year, the thing can even drift into the minus because you still get the money on your pieces, but you could then only liquidate the position by adding to it if you want to. At least that's how I understood it. Does anyone have any other facts?

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