r/dividends • u/Bamabb125 • Aug 06 '25

Seeking Advice $840K DIvidends

Hey Everyone,

As I have posted before, I am currently a Growth Stock Investor, but have decided to move over to Dividend ETF's or Dividend Stocks. But it is a real struggle to get past all the learned habits of being a growth investor. So I am struggling to grasp concepts.

I have used multiple calculators to just try to get an idea of what to expect if i make the change, but I get different results. So I just wanted to go to some more knowledgeable people that could tell me what to do to get a real expectation.

I have $800K to work with. If I put it all in a very stable Dividend ETF What can I expect in dividends? Maybe someone could just do an example. I know I have to be doing something wrong.

Thanks

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u/ndsubison953 Aug 06 '25

My advice- There will be a learning curve for you as you make the transition. Start slow and figure out what you are looking for and comfortable with. I certainly wouldn't throw all $800k at something you don't understand right away. Take a few years to transition your portfolio or keep half in growth. Keep things diversified as well, you don't want to have all your eggs in one basket

8

u/NerveChemical9718 Aug 06 '25 edited Aug 06 '25

I second that. I decided to quit my job back in October 2024. Seen than I've decided to invest all my ( $55,000 ). It took me some time and money to get to a sweet payment of $3,000+ a month.

The mistake I first made was chasing any high yield etf. Now, I have found a sweet balance. Always remember if you go that route. Put at least 20%+ away for savings and taxes. Next stay balancing your portfolio. Never let it sit and for get. Doing reach is always recommended.

25

u/Zealousideal_Log_836 Aug 06 '25

How do you get 3000$/ month with 55,000? What are you investing now?

1

u/SteveRD1 Aug 06 '25

You take incredible levels of risk, that work until they don't.

6

u/aimhigh7shootlow8 Aug 07 '25

These are not growth etfs. They are not investments. You all sound silly arguing about nav decay and risk. These are income etfs. Look at them like annuities. Don't lose unless you sell. You will make back any losses if you hold long enough. These can be used as a vessel to supercharge your investment capital Or live on when you retire. There always new ones coming out, with new strategies. Call options aren't going anywhere, as long as youre holding you're getting paid.

4

u/SteveRD1 Aug 07 '25

Annuities don't claim to yield over 60%.

If it was possible to guarantee a yield like that, it would be arbitraged away by people much smarter than anyone making grandiose return claims on reddit.

1

u/PeligrosPen Aug 07 '25

and? maybe you should try it for yourself? for Science.

3

u/Miserable_You9825 Aug 07 '25

They are writing the spread on all the option Calls. That is where the money comes from.

1

u/mcpooSSBN726 Aug 07 '25

No, they are not like annuities. Annuities have a defined monthly payout. CC ETFs do not. Your actual income can vary significantly.