Re: CHECKING OUT NYMT...! GAIN - board AMZA
I would reword your statement: The reason AMZA can pay out is because they are ABLE UNDER CURRENT MARKET CONDITIONS to issue millions of shares due to a cooperative. But adding more shares adds more dividend liabilities which creates the need to add more shares etc etc. It's really a form of a ponzi scheme masquerading as an ETF. As the share price drops, they will have to issue more and more shares to raise enough money to make up for the amount that they overpay the dividend. Eventually it crashes.
For investors, it's like a roach motel because your ownership interest is continually diluted as they issue more shares without a commensurate increase in assets (at least with REITs, when they do an spo, they buy assets that then generate more income and increase book value -- in case anyone was thinking of comparing AMZA to the REIT model)