August paid $4,918.01 in combined dividend and covered call income, the best month I’ve reported.
Admittedly, covered call income made up nearly half of this total.
Dividends came in at $2,600.45, up 20% from July’s $2,167.88.
Now the biggest downfall to this update…
My Yieldly Dashboard now projects $36,941 in dividend income over the next twelve months. So I gave up somewhere around ~$7,000 a year of projected payouts in one month. HOWEVER, this is temporary — I’ll dive into those details.
The reason I have been selling the high yield ETFs is to fuel growth positions, which has worked out so far. The latest example of this would be my position in Robinhood HOOD 0.00%↑.
I bought Robinhood at an average of $83.38 a share back in May. The position is worth $15,592 today against a $10,423.83 cost basis, or a 49.58% gain. By my own math, the same $10,424 parked in a fund paying 10% would have produced about $1,042 a year, so HOOD handed me close to five years of high-yield income in a single summer.
That's the loop I'm running now, and it's the same one I described when I first wrote up the dividend wheel. Growth names compound, I write covered calls against the ones with rich premiums, and when a position gets well ahead of itself I take the gain and convert it into income.
👉 Here’s what this report covers:
Every position that paid me in August, with July next to it so you can see exactly what moved.
The three covered call contracts that produced $2,317.56 and the one still open.
Why the annual projection fell to $36,941, the four positions I sold, and how much capital that freed up.
Where every dollar went, position by position, straight from my brokerage export.
Sell Alert: 4 Positions Out
I sold four positions in August:
YieldMax S&P 500 0DTE Covered Call Strategy ETF SDTY 0.00%↑
Kroger KR 0.00%↑
YieldMax Universe Fund of Option Income ETFs YMAX 0.00%↑
Bloom Energy BE 0.00%↑.
The three income names had one problem in common. SDTY paid 22% on my cost and the shares were only up 3.35%.
KR paid 2.62% and grows it slowly.
YMAX paid me $3,075 a year on $11,042 invested, and I sold the shares for $4,264, a 61% loss (not including all dividends paid).
BE is the opposite case. I alerted it in December, put in $6,711.75, and sold at $14,999.55 for an $8,287.80 gain, up 123%. The gain by itself is bigger than the whole SDTY position or the whole KR position, and it covers the YMAX loss with room to spare, so I took the profit and moved it into growth names that haven’t run yet.
At some point in the next few years that same capital gets sold again and goes into a fund paying 8% to 10%, and the income it produces at that point will be a multiple of anything SDTY or KR could ever have paid on the original dollars.
With that being said, I plan to eventually rotate more capital into traditional dividend growth companies! Stay tuned for those released!
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