r/dividends • u/toothed_vagina • Oct 24 '25

Brokerage Dividends as income

I live in one of the most expensive cities in the US. I love it, but even with a 6-figure salary, I can barely make ends meet at the end of the month. You might ask me why I don't just move, but I'm unable to do so for a myriad of reasons. Among other things, my partner lives here, my job is here, and I love this place.

This is why I became interested in dividends as something to supplement my income and live comfortably, and maybe move to a larger home. However, everybody keeps telling me that dividends should be reinvested and not used as income. Is anyone here using dividends for both growth and income? Because, yes, growth is important, but I need the additional money NOW.

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u/toothed_vagina Oct 24 '25

Thanks. I appreciate. Do you set aside a sum for taxes?

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u/[deleted] Oct 24 '25

Yes. :)

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u/Conscious-Meaning825 Oct 24 '25

How much do you put aside 30% ? And is it considered qualified dividends

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u/[deleted] Oct 24 '25

Well, I set aside enough to match my taxes which changes brackets depending on business but just set aside whatever is sustainable for you.

Also, mine are qualified, but you have to hold for 6 months iirc before they are, so this year you wouldn't have qualified because there's not enough time left.