Ep #83- Trad Fi-Bursting Your Bubble- (Pepsi vs. MSTY vs. ULTY)

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Season 2, Episode #83. Not Me, But You! Podcast. Follow me/connect  on X: at Waypa Today. 

We continue our series: Trad Fi (traditional finance) stocks compared/contrasted to high yield ETF's that pay much higher dividends. 

We discuss investing investing in Pepsi vs. the true high yield ETF's MSTY and ULTY. Before you invest, determine what game you are playing? Are you playing the "wealth preservation" game or the "wealth accumulation" game? People who invest in a large amount of shares of Pepsi stock are already wealthy. If you are not already a millionaire, or multi millionaire, you will make MORE weekly/monthly cash flow by investing in MSTY and ULTY. 

Are MSTY and ULTY risky? YES! But if you AVOID risk, then you are also AVOIDING HIGH RETURNS! Is Pepsi really a "dividend stock?" Answer: No it's actually a growth stock that pays a very small dividend (dividend yield: 3.89% per YEAR- cost for ONE share: $146).  Compare this to MSTY: yield 166% per year. Cost of one share: $15 to $17. Or compared to ULTY: Yield 135% per year. Cost of one share: $5 to $7. 

At a yield of 3.89% for every share of Pepsi you own, at the end of 12 months: you will get $5.68. Will that extra $5.68 help to make you wealthy?? You don't make MOST of the profit on Pepsi via the dividend. Instead you make profit on shares of Pepsi stock via "share price appreciation" and hopefully future stock splits. 

Simple math: 10,000 shares of Pepsi stock at $146/share will cost you: $1,460,000. Compared to 10,000 shares of MSTY at $16/share will cost you: $160,000. And compared to ULTY 10,000 shares at $6/share will cost you: $60,000. Take HALF of the dividend money from MSTY/ULTY and ROTATE it into LESS RISKY investments. The other half of the dividend payouts I would use to buy MORE shares of MSTY/ULTY for FREE! ZERO COST basis. 

Your 1.5 MILLION dollars invested in Pepsi stock (10,000 shares) will pay you about $60,000 per year. 

What about dividend yields of MSTY/ULTY? If you own 10,000 shares of MSTY you will get paid $10,000 PER MONTH!! It pays a MONTHLY dividend of $1/share. Will that continue? Who knows. 

What about ULTY's dividend yield? It pays $0.10/share per WEEK. That's right, it pays a WEEkLY dividend. So 10,000 shares will pay you $1,000 per WEEK or $4,000 per MONTH!  Do your own research! 

As an investor, understand WHY people do what they do. If Warren Buffett says to invest in a particular stock: that doesn't automatically mean its a great idea for YOU to invest in that stock! Warren Buffett is playing the "wealth preservation" game because he is already wealthy. 

You're NOT a dividend investor if you are investing in Pepsi. You are a GROWTH investor who invests  in something that pays a very SMALL dividend. 

Check out the YouTube channel: Unconventional Wealth Ideas. I only invest in a stock like Pepsi AFTER I have already created $8,000/month to $10,000/month of CASH FLOW! 

Have courage today, to pick one thing, and work on your dreams. We will talk again soon.  

I'm not a financial advisor. This podcast is for education/entertainment purposes only. You will need to do your own research and accept responsibility for the results of any money you choose to invest. I love using Schwab.com to buy/sell stocks/ETF's/closed end funds/options. Schwab has a very user friendly app/website and their customer service is excellent. I can easily get to speak to a human being whenever I have questions.