ULTY vs XOM: Dividend Comparison
Dividend data as of
YieldMax Ultra Option Income Strategy ETF (ULTY) from N/A and Exxon Mobil Corp (XOM) from Energy offer different dividend profiles for income-focused portfolios. ULTY offers a significantly higher 137.83% yield compared to XOM's 2.64%, a gap of 135.19%. For dividend growth, XOM leads with a 5-year CAGR of 11.2% versus ULTY's -88.4%. XOM is a Dividend Aristocrat with 42 years of consecutive increases.
Verdict
Yield Analysis
ULTY yields 135.19% more than XOM. In dollar terms, ULTY pays $45.23/share vs XOM's $4.00/share annually.
Dividend Growth
ULTY: Dividend growth has been steady, with a 3-year CAGR of -88.4% and a 5-year CAGR of -88.4% (10-year: -88.4%).
XOM: Dividend growth is slowing — the 3-year CAGR of 4.3% trails the 5-year rate of 11.2% and the 10-year rate of 6.6%.
Dividend Safety
XOM: The payout ratio of 60% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.7x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in ULTY vs XOM today?
At $34.47 per share, $10,000 buys about 290.1 shares of YieldMax Ultra Option Income Strategy ETF (ULTY). Each share pays $45.23 per year in dividends, so the position starts out generating roughly $13,120 per year — about $1,093 a month.
At $148.59 per share, $10,000 buys about 67.3 shares of Exxon Mobil Corp (XOM). Each share pays $4.00 per year in dividends, so the position starts out generating roughly $269 per year — about $22 a month.
ULTY is the larger income stream from day one: $12,851 per year more on the same $10,000 invested.
What could $10,000 of ULTY or XOM income look like in 10 years?
YieldMax Ultra Option Income Strategy ETF (ULTY)'s dividend has shrunk about 88.4% a year over the past five years. If that trend continued, today's $13,783 per year on $10,000 (at the current 137.83% yield) would fall to $0 per year by 2036.
Exxon Mobil Corp (XOM) has raised its dividend about 11.2% a year over the past five years. If that pace held, the $264 per year that $10,000 generates today at the current 2.64% yield would reach $760 per year by 2036 — a 7.6% yield on the original cost.
On those trailing rates, XOM pays more in 2036: $760 versus $0 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would XOM's dividend growth overtake ULTY's higher yield?
Exxon Mobil Corp (XOM) yields less today (2.64% vs 137.83%) but has grown its dividend faster — 11.2% vs -88.4% a year over the past five years. If both trends continued, a $10,000 position in XOM would start out-earning the same position in ULTY around 2028 (roughly 2 years from now), paying about $326 per year at the crossover. Before that point, ULTY pays more each year; after it, the gap compounds in XOM's favor.
Why is there no payout ratio for ULTY?
REWD has neither an earnings-per-share figure nor a payout ratio for YieldMax Ultra Option Income Strategy ETF (ULTY) — typical for ETFs and covered-call funds, whose distributions are funded by the underlying portfolio (stock dividends, option premium, or return of capital) rather than a single company's earnings. For a fund, judge sustainability by the distribution history and the strategy behind it, not a payout ratio.
Exxon Mobil Corp (XOM) earns $6.70 per share against $4.00 paid out in dividends — 1.7x coverage (a 60% payout ratio). That's the usual corporate affordability test — it just doesn't translate to the fund side of this comparison.
Which fits an early-retirement income portfolio better, ULTY or XOM?
For income you need right now, YieldMax Ultra Option Income Strategy ETF (ULTY) leads: $100,000 invested today pays about $11,486 a month at the current 137.83% yield, versus $220 a month from Exxon Mobil Corp (XOM) at 2.64%.
With a decade or more before the income is needed, XOM's faster dividend growth (11.2% vs -88.4% a year) matters more than the starting yield — raises compound into the larger paycheck over time.
On consistency: XOM has raised its dividend 42 consecutive years.
Many income investors simply hold both — the mix pairs current yield with growth and spreads single-name risk. Whichever way you lean, dividends are never guaranteed; recheck the payout each quarter rather than setting and forgetting.
$10,000 with DRIP: projected annual income
If each holding keeps raising its dividend at its real 5-year rate and every payment is reinvested, a $10,000 position pays $0/yr in ULTY vs $986/yr in XOM by year 10.
Assumes dividends are reinvested at the current yield and grow at each holding's trailing 5-year dividend CAGR. A projection, not a prediction — no price appreciation modeled.
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