YMET: The Undervalued Dividend Play in the AI Gold Rush

Here's a play that's flying under the radar in the tech sector: the META Yield Shares Purpose ETF (YMET). While its Amazon-focused counterpart YAMZ is getting all the headlines with its 10.83% dividend yield, YMET's paltry CAD 0.16/month payout is a screaming buy—if you're willing to think like a contrarian. Let me explain why this ETF's “low yield” is actually a goldmine.

The Contrarian Play: Why Less Can Mean More

At first glance, YMET's CAD 0.16 monthly dividend looks pitiful compared to YAMZ's CAD 0.40. But here's the key: dividend yields aren't just about the payout—they're about price. YAMZ is trading at CAD 43.34, while YMET is at CAD 139.17. Do the math: YAMZ's yield is (CAD 0.40 × 12) / 43.34 ≈ 11%. YMET's? (CAD 0.16 × 12) / 139.17 ≈ 1.37%.

On paper, YAMZ is the obvious winner. But here's where contrarians strike: YMET's low yield reflects its undervalued price relative to Meta's true potential. Meta's stock (underlying YMET) has been pummeled by AI fears and competition, but its AI tools like Llama and its $10 billion investment in generative models are now starting to deliver. This ETF is priced like a dead horse—but the horse is coming back to life.

Why the Dividend Discount?

YMET's “discount” isn't because Meta's cash flow is drying up—it's because the market has written off Meta's growth. But here's the catch: YMET isn't just a dividend ETF—it's a covered call strategy that locks in income while maintaining exposure to Meta's stock. That means if Meta's stock soars, YMET investors get the upside too.

The market's underestimating Meta's AI pivot. Competitors like Google and Amazon might dominate headlines, but Meta's open-source approach to Llama and its massive user base give it a secret weapon. This ETF is a two-fer: you get monthly income at a steal of a price, and you're positioned to profit if Meta's stock rebounds.

The Catalyst: Meta's AI Surge

Meta's Q2 results (due shortly) could be the breakout moment. Its AI-powered ad tools are already boosting revenue, and its new “AI Everywhere” strategy aims to integrate generative models into every product—Messenger, Instagram, even its hardware. This isn't just about ads; it's about dominating the next phase of the internet.

YMET's June 3 payable date (for the May dividend) has passed, but here's the setup: the next dividend on July 3 will pay CAD 0.24—up from CAD 0.16 in May. That's a 50% yield boost in six months, signaling that Purpose Investments sees Meta's cash flow improving. This isn't a typo; check the data:

This ETF is quietly raising its payout, and the market hasn't noticed yet.

The Technicals: A Setup for a Rally

YMET's price of CAD 139.17 is near its 52-week low—but its fundamentals are stronger than its price suggests. The ETF's covered call strategy has been consistent, and with Meta's stock stabilizing, there's no reason YMET can't retrace to its 2022 highs near CAD 145+.

Plus, the CAD 0.24 dividend (due July) gives a 12-month yield of ~2.1%, which isn't huge—but when paired with Meta's growth, it's a steal. This is a buy-and-hold setup, especially if you can get in before the next ex-dividend date (June 26).

Risks? Sure—But They're Overblown

Critics will say tech is volatile, and covered calls limit upside. True—but Meta's undervaluation more than offsets that. If you're worried about downside, remember: YMET's dividend is paid in cash, so even if Meta's stock dips, you're still getting paid.

Final Recommendation: Buy YMET Now—Settle for Less Yield for More Upside

This is a buy at CAD 139.17, targeting CAD 150 by year-end. The July 3 dividend is a no-brainer—and if Meta's AI plays pay off, this ETF could double.

Action Alert: Don't let the low yield fool you. YMET is the contrarian's dream: a dirt-cheap entry into Meta's AI future, with a dividend that's quietly rising. Buy now—before the crowd catches on.

Remember: In investing, the best opportunities are the ones everyone's ignoring. YMET is that play right now.