What was paid was not a dividend. It was an annual capital gains distribution which many ETFs close out the year with. Despite it being a capital gains distribution, it's taxed similarly to a dividend which explains why It's often misidentified. Capital gains distributions occur when an exchange-traded fund (ETF) sells securities in its portfolio at a profit. A dividend comes from a company’s profits and is paid to shareholders as a reward for owning shares. As noted above, the capital gains distribution is identified by the IRS as ordinary income and is not subject to short or long-term capital gains taxation. It is a one-time distribution that normally occurs at the very end of December to close out the year. You can expect to see another one in December 2025. Like a dividend, the amount of the distribution, in this particular case, was reduced from the closing price of MSTX on Dec 30. Despite the actual payout occurring on January 3rd, for taxation purposes, our capital gains for 2024 will increase by that distribution amount because the IRS considers the reporting date as the official date of the distribution, not January 3rd.
Thanks for the info. I held the stock stock last year and was paid a distribution. How long do I have to hold the stock this year to receive another capital gains distribution?
@@SystemsProjectEngineer You only have to own it as of 8:00 p.m. on the date of the announcement or press release. You could go the entire year without having a position in MSTX but as long as you own shares by 8:00 p.m. on the day they announce the distribution, you're in.
@@SystemsProjectEngineer to receive a capital gains distribution, you only need to own shares of mstx as of 8:00 p.m the night before the reporting date, which is also the ex-dividend date. Technically you could go all year without owning shares and then buy in late December to capture the distribution.
Dividends always reduce the share price by at least the div per share ($14.42 in this case). It may just be a special div since it only was born last august. An annual dividend would be like preferred stock. A quarterly dividend would be like common stock. Just stay alert and nimble.
I was paid huge dividends too yesterday. I was shocked. I thought it was a mistake at first. I am down as well and I have 182 shares. It was paid in cash. I was not given the option for automatic reinvest the dividend for mstx.
I couldn’t figure out what was going on with my account when they paid the dividend. I’ve never heard of such a large dividend and I also thought it was a mistake!!! I’m still down on MSTX, but since I always choose to reinvest dividends it bought in at $39.84. This dividend likely saved me from the huge losses that I thought I’d never recover in the near term.
Yea I woke up to what I thought was a mistake in my account and did a little looking around and saw I got a dividend. Just don’t know if it is a one time thing or? Any info would be great.
Can't find anything. I've been looking and all I got so far is these funds can only take in so much profit and so they distributed back the excess as a dividend.
I dont know why either but I think its because these fund managers need to distribute at least 90% of their taxable income by the end of the year otherwise they get into trouble tax wise if they dont. A couple of my funds had larger than usual dividends/distributions at the end of the year. You averaged down at the right time, I averaged down too late after ex dividend date.
No way it is monthly. There isn't any info out there but another comment mentioned that this is likely excess profit re-distributed. So likely not something to count on
Thanks for the info. I was shocked too. I received 4.2 k and was still down!
What was paid was not a dividend. It was an annual capital gains distribution which many ETFs close out the year with. Despite it being a capital gains distribution, it's taxed similarly to a dividend which explains why It's often misidentified.
Capital gains distributions occur when an exchange-traded fund (ETF) sells securities in its portfolio at a profit. A dividend comes from a company’s profits and is paid to shareholders as a reward for owning shares.
As noted above, the capital gains distribution is identified by the IRS as ordinary income and is not subject to short or long-term capital gains taxation.
It is a one-time distribution that normally occurs at the very end of December to close out the year. You can expect to see another one in December 2025.
Like a dividend, the amount of the distribution, in this particular case, was reduced from the closing price of MSTX on Dec 30. Despite the actual payout occurring on January 3rd, for taxation purposes, our capital gains for 2024 will increase by that distribution amount because the IRS considers the reporting date as the official date of the distribution, not January 3rd.
Thank you so much for this! 🙏🏼
Thanks for the info. I held the stock stock last year and was paid a distribution. How long do I have to hold the stock this year to receive another capital gains distribution?
Thanks for sharing.
@@SystemsProjectEngineer You only have to own it as of 8:00 p.m. on the date of the announcement or press release. You could go the entire year without having a position in MSTX but as long as you own shares by 8:00 p.m. on the day they announce the distribution, you're in.
@@SystemsProjectEngineer to receive a capital gains distribution, you only need to own shares of mstx as of 8:00 p.m the night before the reporting date, which is also the ex-dividend date. Technically you could go all year without owning shares and then buy in late December to capture the distribution.
Dividends always reduce the share price by at least the div per share ($14.42 in this case).
It may just be a special div since it only was born last august. An annual dividend would be like preferred stock. A quarterly dividend would be like common stock. Just stay alert and nimble.
Pleasant surprise this morning. Does anyone know if it’s a recurring dividend or just one time dividend payout ?
Same thing happen with nvdx… invida leverage
dividend was announced ago 16th
I was paid huge dividends too yesterday. I was shocked. I thought it was a mistake at first. I am down as well and I have 182 shares. It was paid in cash. I was not given the option for automatic reinvest the dividend for mstx.
yes, we have lost 30% of that amount already
I couldn’t figure out what was going on with my account when they paid the dividend. I’ve never heard of such a large dividend and I also thought it was a mistake!!!
I’m still down on MSTX, but since I always choose to reinvest dividends it bought in at $39.84. This dividend likely saved me from the huge losses that I thought I’d never recover in the near term.
I'm right there with you. Really hoping for another sun run. This time I will take some profit when up😉 -- ( probably not, I never take profit!! 😂🤣)
Yea I woke up to what I thought was a mistake in my account and did a little looking around and saw I got a dividend. Just don’t know if it is a one time thing or? Any info would be great.
Can't find anything. I've been looking and all I got so far is these funds can only take in so much profit and so they distributed back the excess as a dividend.
I dont know why either but I think its because these fund managers need to distribute at least 90% of their taxable income by the end of the year otherwise they get into trouble tax wise if they dont. A couple of my funds had larger than usual dividends/distributions at the end of the year. You averaged down at the right time, I averaged down too late after ex dividend date.
That would make a lot of sense. Thanks 👍🏼
is it gonna be a monthly dividends ? Reinvested automatically 30% ? Guys i've been looking for some useful informations on that without any luck !!
No way it is monthly. There isn't any info out there but another comment mentioned that this is likely excess profit re-distributed. So likely not something to count on
I sold a put option on this stock for $48 expired on 01/03 and the option is in the money but I did not get the share :(
Option stopped trading
It was declared 12/31. I don't know when you had to own it by because there is little information on this.
Put it into msty
Thanks for mentioning this. Just looked it up. Very interesting
I lost 30% due to the withholding tax
Stupid ETF going to sell and move to MSTU
Withholding tax? Did they automatically do that?
yes, many of us lost 30%, not many of us are lucky enough to have that Dividend back on 3-Jan
Yeah, that sucks. Sorry to hear it.
OMG I got 26000 Yesterday what's goingn on OMG
Fantastic