TSLY Dividend Calculator 2026
Calculate your potential income from YieldMax TSLA Option Income ETF (TSLY). See monthly and annual dividend projections.
Calculate TSLY Income
Table of Contents
How to Calculate TSLY Dividend Income
Follow these steps to estimate your TSLY dividend income:
- Enter investment amount - How much you want to invest in TSLY.
- Verify the share price - The calculator uses current price of $32.09.
- Check the yield - TSLY currently yields 19.82% annually.
- View your projected income - See annual, monthly, and quarterly estimates.
About YieldMax TSLA Option Income ETF (TSLY)
TSLY is a YieldMax single-stock ETF that converts Tesla's high stock volatility into monthly income by selling options contracts. The fund does not own Tesla shares directly but uses a synthetic strategy to capture premium from Tesla's notoriously volatile price swings. TSLY's yield can exceed 50% annualized during periods of peak volatility, though distributions are variable and NAV erosion is a real risk during sustained stock declines. The ETF appeals to investors who are bullish or neutral on Tesla and want to monetize its volatility rather than bet purely on price appreciation.
TSLY Key Facts
- Dividend Yield: 19.82% annually
- Payment Frequency: Monthly
- Sector: ETF
- Expense Ratio: 0.99%
Why Invest in TSLY for Dividends?
YieldMax TSLA Option Income Strategy ETF (TSLY) generates monthly income by selling covered call options on Tesla (TSLA) stock. Tesla's notoriously high volatility makes its options premiums some of the richest in the market, enabling TSLY to deliver annualized yields that frequently exceed 40%. The fund uses synthetic options positions rather than holding Tesla shares directly, allowing it to collect premiums while maintaining exposure to Tesla's price movements up to the call strike price. TSLY appeals to investors who are bullish on Tesla but want to extract income from the position rather than relying solely on capital appreciation. However, the strategy sacrifices upside during Tesla rallies and the fund's NAV has historically eroded over time as distributions exceed total returns.
TSLY Dividend Track Record
TSLY's monthly distributions have been substantial since its November 2022 launch, though they vary considerably based on Tesla's implied volatility and the premiums available in the options market. In months with high Tesla volatility around earnings reports or major product announcements, distributions tend to spike. During calmer periods, distributions decline. Like other YieldMax single-stock ETFs, a significant portion of TSLY's distributions may be classified as return of capital, meaning the fund is partly returning investors' own money. The trailing 12-month yield has fluctuated dramatically, and investors should evaluate total return (distributions plus NAV change) rather than yield alone.
Key Risk Factors for TSLY Investors
- Tesla stock is among the most volatile large-cap equities in the market, and TSLY inherits this volatility while also limiting upside through its covered call strategy, creating an asymmetric risk profile where losses are fully captured but gains are capped.
- TSLY's NAV has experienced persistent decline since launch as distributions have exceeded the fund's net investment returns, meaning investors are effectively receiving their own capital back disguised as high-yield income.
- Single-stock ETFs concentrate all risk in one company, and Tesla faces unique risks including CEO distraction, increasing EV competition, potential regulatory changes to EV subsidies, and margin compression from price cuts.
TSLY Dividend FAQ
Is TSLY a good dividend investment?
TSLY offers a 19.82% yield with monthly payments. This is a high-yield investment that significantly exceeds the S&P 500 average of ~1.3%. High yields can indicate higher risk, so evaluate whether the payout is sustainable relative to earnings and cash flow before investing a large position.
How often does TSLY pay dividends?
TSLY pays dividends monthly, distributing 12 payments per year. Monthly payers are popular with retirees who use dividends to cover living expenses, since the payments match up with monthly bills. Each payment is approximately $0.5299 per share at the current annual rate.
How much income does $10,000 in TSLY generate?
A $10,000 investment in TSLY at the current price of $32.09 buys approximately 311 shares, generating about $1982 per year ($165/month) in dividend income before taxes. At the qualified dividend tax rate of 15%, after-tax annual income would be approximately $1685. Reinvesting these dividends through DRIP would compound your income over time.
What is TSLY's expense ratio?
TSLY charges an expense ratio of 0.99%, meaning you pay $99 annually per $10,000 invested. This is higher than passive index ETFs, but active options strategies require more management and trading, which justifies the premium for income-focused investors.
How do I buy TSLY for dividends?
You can buy TSLY through any brokerage account (Fidelity, Schwab, Vanguard, etc.) by searching for the ticker symbol "TSLY". Most brokers offer commission-free trading and automatic dividend reinvestment (DRIP). For tax-efficient dividend income, consider holding TSLY in a Roth IRA where dividends grow and are withdrawn tax-free in retirement.
Is TSLY's dividend safe?
TSLY is an ETF, so its distributions depend on the dividends and option premiums generated by its underlying holdings. ETF distributions can vary month to month based on market conditions, but the fund cannot "cut" its dividend in the way an individual company can.
Does TSLY actually hold Tesla stock?
No, TSLY does not directly own Tesla shares. Instead, it uses synthetic options positions, typically buying deep-in-the-money call options and selling near-the-money call options, to replicate Tesla exposure while generating income. This synthetic approach is more capital-efficient and allows the fund to precisely manage its options strategy. The result is similar economic exposure to owning Tesla shares with a covered call overlay, but the actual portfolio consists entirely of options contracts and Treasury securities used as collateral.
Why has TSLY's share price declined while paying high distributions?
TSLY's share price decline reflects NAV erosion, which occurs when the fund distributes more cash than it earns from its options strategy and Tesla price appreciation combined. In a covered call strategy, gains are capped at the strike price while losses are fully absorbed. When Tesla rallies strongly, TSLY misses the upside above the strike but still distributes cash. When Tesla drops, the NAV declines. Over time, this asymmetry plus high distributions leads to a declining share price, even as total distributions may offset some of the NAV loss.
Investing in TSLY for Dividend Income
YieldMax TSLA Option Income ETF (TSLY) offers investors a high-yield income opportunity with its current 19.82% dividend yield. As an ETF with a 0.99% expense ratio, TSLY provides diversified exposure to dividend-paying stocks with professional management.
Monthly dividend payers like TSLY are particularly attractive for retirees and income investors who prefer regular cash flow. The more frequent payment schedule can help with budgeting and reduces the time money sits idle between payments.
Use this calculator to project your potential dividend income from TSLY, model different investment scenarios, and plan your path toward financial goals. For comprehensive analysis, combine these projections with our tax calculator for after-tax returns and DRIP calculator for long-term compounding effects.
Sources
This calculator is based on the following authoritative sources:
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Investopedia - Dividend Yield Definition
Comprehensive guide to dividend yield calculation and evaluation methodology.
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Yahoo Finance - Stock Data
Real-time stock prices, dividend information, and financial data.
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SEC EDGAR - Company Filings
Official SEC filings with dividend announcements and financial reports.
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YieldMax - TSLY ETF Overview
Official YieldMax page with TSLY prospectus, distribution history, holdings, and options strategy methodology.