Ep #85 - Trad Fi- Bursting Your Bubble- (Visa vs. MSTY vs. ULTY)

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Season 2, Episode #85. Not Me, But You! Podcast. Follow and connect with me on X at: Waypa Today. 

We continue our series on "Bursting Your Bubble" about Traditional Finance stocks. We discuss Visa today. Many people who claim to be "dividend investors" own Visa stock. Is it a dividend stock? Or is it a growth stock that pays a small dividend? 

Let's run the numbers. Cost of one share: $343/share. Cost of 10,000 shares is $3,400,000. Visa is a great stock for people that are already wealthy that are playing the "wealth preservation" game. Yield for Visa is 0.69% per year. Earn $2.36/share per year. Owning 10,000 shares of Visa will pay you $23,600/year. Dividend schedule: Visa pays quarterly. 

Cost of one share of MSTY is $15 to $17. Let's use $16 as average cost per share. so cost of 10,000 shares of MSTY is $160,000. MSTY pays ONE DOLLAR per share PER MONTH. It's a montly payer. So you would make $10,000 PER MONTH if you owned 10,000 shares. Dividend yield for MSTY: 166%. They use a covered call option strategy with involved risk. MSTY is a single stock risk fund tied to the stock MSTR> 

Cost of share of ULTY is between $5 and $7. Let's use $6 as average cost per share. So 10,000 shares would cost $60,000. ULTY pays WEEKLY, between 9 cents and 10 cents/share PER WEEK. So you would make $900 to $1,000 PER WEEK in dividends if you owned 10,000 shares. Monthly income from ULTY would be $3,600 to $4,000 per month. Yearly income: $43,200 to $48,000 per eyar. Dividend yield: 135%. They use a covered call option strategy which involved risk. ULTY invests in about 30 different companies. 

People often have a romantic day about retirement and they think that magically, things will work out. Do you plan on spending down your principal in retirment? Or living off the interest, the ROI, the dividends? 

Two long term growth stocks that I invest is are: Tesla and MSTR> I belive BOTH of these stocks will reach $2,000/share in next 8 to 10 years. Tesla is MORE than just an electric car comany. It is an AI play. And MSTR holds over 600,000 Bitcoin on their company balance sheet. 

I suggest rotating 1/2 of dividends from MSTY/ULTY and rotate into LESS risky assets like QQQI/SPYI/CLM. And take 1/2 of the dividends and invest back into FREE shares of MSTY/ULTY. That lowers your overall cost basis and brings you more dividends per week/month moving forward. 

Figure out WHY wealthy people invest in the things they invest in. 

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.