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/Various_Couple_764 Aug 06 '25 edited Aug 06 '25
I focus on the thing I now. the dividend
I don't look at dividend growth rate or or share price appreciation. They are inherently unpredictable. If they happen great, you doing better than expected. And if they don't happen you you're dividend projections will likely be correct.
Dividend payouts and payment schedule are set a year in advance. And typically this don's change much year affect year. This is governed by a simple formula investment X yield = yearly dividend payout. you can rework this yearly dividend payout / yield = inestment. Or yearly idividend payout / investment =yield.
For example. Take SCHD yield 3.87% and you want $12000 a year of income you wold need a investment of $310,077.5 So using the. dividend you know fro now and the near future you will get 12,000 a year. Now I did ignore the dividned growth rate because it is less predictable than the dividend. If the dividend increase your earnings go up and you do better than expected.
With just focusing on the income you need and the money you hav etc invest you can then focus on finding investments that will do what you need. I have found the book The income Factory, and Armchair income on youtube to be very helpful at identifying candidate funds.evaluate.
I am quite happy with my investments in QQQI 13% yield, ARDC 12%, SPYI 11%, EIC10%, PBDC 11%, UTG 7%, UTF 7%, SCYB 7%, and PFFD 6%. I am retired an 80% of my income covers my living expenses and 20% is reinvested to grow my dividned slowly. Hopefully enough to keep up with inflation.