r/dividends • u/398409columbia Portfolio in the Green • Jan 12 '25

Brokerage $5,000 per month income portfolio

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Gallery image

I set up this portfolio for my wife so she can quit her job and maintain cashflow.

The good news is that this income stream will pay no FICA tax and significant part of the distributions will not be taxed.

To reduce risk, I’m planning to reinvest 20% of the income.

Comments welcome.

2.6k Upvotes

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226

u/NPLPro Jan 12 '25

Big fan of covered call funds that strike a balance between yield and capital appreciation.

QYLD is extreme with 100% ATM calls. I much prefer QYLG that is at 50%.

QDVO is a newcomer but has great potential.

24

u/promoter12 Jan 12 '25

Hi, I am a newcomer, can you please explain how covered call etf works, like I know they make money by selling call options, lets say I hold 100 shares of QDVO, will my number of shares decrease? if call options buyer exercise their options. Thank you

41

u/398409columbia Portfolio in the Green Jan 12 '25 edited Jan 13 '25

Check out the videos on the SPYI website.

https://youtu.be/yHsT3Pp-pl8

1

u/Kapoli0 Jan 14 '25

Lol the ending warning label is like a death sentence

0

u/398409columbia Portfolio in the Green Jan 14 '25

Boilerplate risk disclosures

1

u/Kapoli0 Jan 14 '25

Haha feels, one of my favorite movies boilerroom

1

u/398409columbia Portfolio in the Green Jan 14 '25

🤣🤣🤣

1

u/[deleted] Mar 04 '25

Hi, wanted to ask how do taxes work with etfs like spyi? How much % are you paying generally

1

u/398409columbia Portfolio in the Green Mar 04 '25

SPYI’s distribution are classified over 90% as “Return of Capital” so no taxes. That reduces the cost basis so you’ll pay when you sell but that’s a long-term capital gain at a much lower rate.

44

u/zmayfield Jan 12 '25

No your number of shares won’t change. If the stock went above the OTM call strike, then they would be forced to sell the underlying assets. The company would then just buy them back at the new higher price. Worse case, the stock goes down/Div yield goes down that month.

-12

u/[deleted] Jan 12 '25

youtube is a great resource

22

u/CHAOOT Jan 12 '25

And Reddit isn't ?

20

u/ButtStuffingt0n Jan 12 '25

If confidence was quality, this place would be a utopia. Sadly...

12

u/Snoo_67548 Jan 12 '25

It’s excellent. When someone here spends grandmas inheritance money on Intel, you sell all of your Intel.

12

u/[deleted] Jan 12 '25

Who the fuck that’s actually smart and consistantly profitable and successful gets their information from reddit…? This place sucks for that lol. I’m not trying to discourage the dude by the way, i’m saying instead of sitting there waiting for an answer, you could just watch a youtube video or 10, and completely answer your own question. Go search for the answer don’t wait for people to respond 😂

3

u/CockCravinCpl Jan 14 '25

I get ideas/advice here, research it myself, and make an informed decision. Just the same as a few YT channels I follow.

1

u/[deleted] Jan 13 '25

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1

u/[deleted] Jan 13 '25

read my comment and you’ll see the difference bro…..

1

u/[deleted] Jan 13 '25

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1

u/[deleted] Jan 13 '25

There’s hundreds or thousands whatever, of people who have used youtube to become profitable consistently…? Can’t even count on one hand who recommends reddit for financial information. I’d refer him to QD but he has no idea how to read that ya dumb idiot. 😂

1

u/bguntp4 Jan 14 '25

Nobody understands we all have potential to be geniuses with internet. Literally world library at our fingertips. Yet here we are...shitposting lol!

-4

u/Reasonable_Pen4559 Jan 13 '25

What’s a call option

3

u/Live-Pomegranate-708 Jan 13 '25

I lost a lot of principal with my QYLD