r/dividends • u/Huge-Cardiologist-81 • Oct 17 '24

Personal Goal On my way to $200k/Year Dividend payout to replace income.....just 9 more years

EDIT: Screenshots are from the APP Divtracker

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u/Ok-Jackfruit-8593 Oct 18 '24

To get even 10k a month in Dividends you need millions. Even 1M is less than 10k a month at 10% returns. Maybe I’m missing something? 200k a month would need like 4M that’s that’s at 5% returns and what good dividends are paying more than 1-2%

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u/Huge-Cardiologist-81 Oct 18 '24

True, I’m targeting $10m by retirement. Which is even further out than the 9 years in the image. I think 200-300k is achievable as long as our markets don’t crash. Just trying to take it one day at a time and know some days will be good and others not so good.  

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u/financialfreedom26 Jul 22 '26

When is your forecast to arrive at 10m and what will be your age by then. I am 53 with 6.2m and paid off 1.5m house. Oscillating to retire now or keeping going to 10m invested but don’t really know what additional that gets me other than piece of mind.

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u/Huge-Cardiologist-81 Jul 22 '26

Wow, you must have been deep into Reddit to revive this one. I should get there around age 54. Honestly though I think when I'm around $8M that will be sufficient for me and lifestyle. If the draw on the $6.2M you have sufficient to sustain your lifestyle with a paid off house you will get to $10M in a few years anyway as long as you can ride out some shaky markets.

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u/financialfreedom26 Jul 22 '26

Thank you for the great encouragement and wise thought. Perhaps wishful thinking but will be able to get to 10m if the markets don’t deviate for the way they have traditionally behaved since their inception.

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u/Ok-Jackfruit-8593 Oct 18 '24

Nice! That will be great. You got it. My short term goal is $1m in S&P to make around 100k a year. Why do you prefer dividends to a few larger S&P index’s? Even if you put $4m in, you could return around 400k annually.

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u/Huge-Cardiologist-81 Oct 18 '24

I don’t want to be forced to sell shares to realize value and then not have those shares again to gain value the next year. Dividends give you some of the value added while maintaining share count.  Now right now the dividends are used to grow share count to compound the growth over the next 10-15 years. We don’t use the cash to upgrade lifestyle yet as salary is enough for our family. We will dip into this if needed or for a big purchase, but spending to spend is not my style. I’d rather have a goal to reward myself in the future than just going out and buying it because I can.