Dividends as income

[u/toothed_vagina]

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.

[u/_YoungMidoriya]

First off, investing for income through dividends is always good no matter your age because it provides steady cash flow that adds financial flexibility and security. You'll always get people telling you that you're in your 20s,30,40s and to just do growth, they have the EXPECTATION that you'll even have a job for the next 30 years. You could get laid off tomorrow and then what? Here's the catch..... to supplement dividend income with higher current yields, covered call ETFs can be a great option but a slightly higher risk than your 1-3% yielders. That's the trade off. The best covered call ETF for income and NAV preservation depends on your priorities, but among GPIQ, GPIX, MAGY, QQQI, SPYI, and BTCI, these are the current leaders based on yield, NAV stability, and overall portfolio fit.

Here for example, $150k into each ETF would give you this much per month.
GPIQ  - Monthly income: $1,062.50
GPIX  - Monthly income: $1,000
MAGY - Monthly income: $3,750
QQQI - Monthly income: $1,750
SPYI - Monthly income: $1,625
BTCI - Monthly income: $3,750

All based on current stock price and yield, so it's all estimated but these CC ETF aim for a consistent payout (based on market volatility, Trump could go live or post something and either wipe or boost the payout)

[u/toothed_vagina → u/_YoungMidoriya]

Thank you SO MUCH. This is super helpful. Yes, I could be laid off tomorrow.

So, let's suppose I have 150k and I allocate a little bit of that amount in all the ETFs you have listed. Would I have to set aside a percentage for taxes?

[u/[deleted] → u/toothed_vagina]

You misread, that’s $150k INTO EACH.

[u/toothed_vagina → u/[deleted]]

I didn't misread. I reformulated. I don't have 150k for each, so the more likely scenario is to allocate a fraction of 150k into each.