Austin Smith
Thu, March 19, 2026 at 9:35 AM EDT 4 min read
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YieldMax DDDD ETF (DDDD), launched March 11, 2026, holds Schwab US Dividend Equity ETF (SCHD) and writes covered call spreads to target roughly double SCHD’s 3.39% yield; major underlying holdings include Verizon (VZ) at 4.49% of SCHD with $19.8B free cash flow in FY2024 and a 20+ year dividend growth streak, and Altria (MO) at 4.14% of SCHD yielding 6.16% with 60 dividend increases in 56 years despite declining volume.
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DDDD’s doubled income comes from selling upside through options overlays, capping appreciation and creating tax inefficiency from short-term gains while the brand-new $2.3M fund carries NAV erosion risk if distributions exceed earnings.
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A recent study identified one single habit that doubled Americans’ retirement savings and moved retirement from dream, to reality. Read more here.
YieldMax DDDD ETF (NYSEARCA:DDDD), launched on March 11, 2026, owns SCHD and writes options on its holdings to double the yield. If you already hold Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD), which currently yields 3.39%, DDDD targets roughly double that yield through an actively managed options overlay, putting the distribution target near double that yield annually. But before chasing that income, understand what is actually generating it.
DDDD's largest equity holding is SCHD itself at 19.04% of net assets, giving it direct exposure to SCHD's top dividend payers. Two of the most meaningful underlying positions are Verizon Communications (NYSE:VZ) at 4.49% of SCHD and Altria Group (NYSE:MO) at 4.14%. Both represent some of the highest-yielding positions in the portfolio.
Verizon has raised its dividend for over 20 consecutive years. Free cash flow came in at $19.8 billion in FY2024, against operating cash flow of $36.9 billion which provides strong dividend coverage. The annualized dividend of $2.735 annualized dividend compares to TTM EPS of $4.06.
Read: Data Shows One Habit Doubles American’s Savings And Boosts Retirement
Most Americans drastically underestimate how much they need to retire and overestimate how prepared they are. But data shows that people with one habit have more than double the savings of those who don’t.
The risk is the balance sheet. Total debt stands at approximately $144 billion, with shareholders equity of $100.575 billion. This is a telecom reality, not an anomaly, but it limits flexibility. Verizon's 2025 guidance calls for free cash flow of $17.5 billion to $18.5 billion, still comfortably above the dividend obligation.
