Ep #86- Trad Fi- Bursting Your Bubble- (Caterpillar vs. MSTY vs. ULTY)

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Season 2, Episode #86. Not Me, But You! Podcast. You can follow me and connect with me on X: at Waypa Today. 

Today we review Caterpillar stock compared to the ETF's MSTY and ULTY. Cost of one share of Ceterpillar is about $425. Cost of one share of MSTY is between $15 to $17 per share. Cost of one share of ULTY is about $6. 

Yearly dividend yield on Caterpillar is 1.43%.  The dividend yield per year on MSTY is 166% and the yearly dividend yield on ULTY is 135%. MSTY pays a MONTHLY dividend. ULTY pays a WEEKLY dividend. Caterpillar pays a quarterly dividend. 

If you invested 4.2 MILLION dollars in Caterpillar then you would receive a yearly dividend of about $60,400 per year. 

However if you invested $160,000 into MSTY you would recieve $10,000 per MONTH in dividends. Why? Because MSTY pays $1/share per month. 

Or if you invested $60,000 into ULTY, then you would receive about $1,000 per WEEK in dividends and that works out to be about $4,000 per month in dividends! 

What this really boils down to is: are you playing the "wealth preservation game" or are you playing the "wealth accumulation game."  People who invest in very PASSIVE stocks like Caterpillar, are trying to avoid risk but by doing that, they are also avoiding high returns! People who are already wealthy (like millionaires and multi milliionaires) are trying NOT to lose money! That's why they select investments like Caterpillar, which is not a bad company at all. I just don't recommend it UNLESS you already havea FULL TIME income in dividends every month. 

You will work your entire life for "cash flow." So why not CREATE some of your own cash flow by buying/holding assets that pay you a true high yield dividend? 

On this podcast, we always talk about ROTATING 1/2 of your dividend money into LESS RISKY investments, like: QQQI, SPYI, and CLM. 

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.