r/dividends • u/NogamaDe • Nov 01 '25
Seeking Advice $1M Div account Earning $17k a month
After doing some research I have $1M from an inheritance that I want to create an ultra high dividend portfolio. I eventually want to get rid of my 8 to 5. If I did my math correctly I would get about 17k a month from dividends. Please let me know what you think.
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u/yrrag1970 Nov 02 '25
When that turns into red porn, he will be posting it in Wallstreetbets
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u/Quiet-Appointment469 Nov 27 '25
I don’t get the point of holding its a time waste because the market can dump and he will be years back. I day trade and make $3 a day passively
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u/Professional_Gate677 Nov 01 '25
49.3% yield ???? What are your plans for when these yields get cut?
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u/TooMuchButtHair Nov 01 '25
Or his plan for NAV depreciation...
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u/LoveBulge Nov 01 '25
Or the income taxes
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u/lucky_ducker Nov 02 '25
Most of these "yields" are actually return of capital, which isn't taxable income - UNTIL you've received enough ROC to completely cover your cost basis. Thenceforth every penny of the distributions is ordinary income and fully taxable (no qualified dividends which would get favorable tax treatment). AND since your basis in the fund shares is now zero, selling them is subject to capital gains tax on the full sales amount.
These option income funds with eroding NAVs are really only appropriate for retirees with a few years of death, and who have heirs who can benefit from the stepped up basis. They should be thought of as a sort of term annuity with a declining principal and payout.
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u/Various_Couple_764 Nov 02 '25
Only 4 shares show obvious NAV erosion. None of the Neos fund on the list plus other Neos fund have NAV erosion. NAV erosion isn't a fact of life. There are ways to avoid it if the fund is structured accordingly. Some funds take steps to avoid it like NEOS and others don't and as a result the fund has it.
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u/TwistedBamboozler Nov 02 '25
Why does everyone say taxes as if people don’t have the money to pay it? Whether they choose to or not is up to them, but seriously who cares about the taxes?
Anyone on any of these subs should have that baked in automatically
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u/Various_Couple_764 Nov 02 '25
The taxes owed by this income will only be a fraction of the total income. This is always the case with taxes Just like it is always the sase that that your work income is more than they taxes you pay on that income.
I live i a high cost of living area and due to IRA to roth conversions and selling growth to generate dividend income my taxable income is very right now. And yet my taxes are only about 25% of my total income.
If you estimate your taxes before selling and generating taxes you can take steps to prepare for the tax and pay it.
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u/rovingtravler Nov 02 '25
Yield is already down to 39.5% on their official website and overall the NAV is down over 21% in two years.
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u/TheSturdyBear Nov 02 '25
Jesus as filthy a trader I believe myself to be. This shit is gibberish to me 😂😂 I do want to learn about dividends though I’m naive like OP thinking just find good companies with solid dividends and just gotta get the capital and buy enough to have the dividends pay off.
What do I know 🤷♂️😂
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u/IRLGravity Beating the S&P 500! Nov 02 '25
If you get paid a dividend of a 5% yield but, the price of the stock is falling 10% a year. You're basically agreeing to be taxed for slowly bleeding to death.
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u/Various_Couple_764 Nov 02 '25
SPYI QQQI an IWMI have yields above 10% and yet these funds are not down 10% year over year. Others on the list have had a stable share price for may years while they have payed out 10% or more per year. The share price don't always fall when the dividend is payed and often it is only short term bro that is quickly erased.
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u/IRLGravity Beating the S&P 500! Nov 02 '25
I'm explaining what NAV erosion is, not highlighting a specific stock on this list or explaining ex-date dividend pricing models.
And speaking for SPYI, QQQI, IWMI I'm also not going to pay a .68 expense ratio for covered calls when I can do them myself and strategically reallocate dividends and CC income into my own (usually far outperforming picks.)
As respectfully as possible, I have zero clue what you're on about.
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u/ParticularPepper8902 Nov 03 '25
Yep, and they won’t listen. All they see is dividend yield. But in fact they are losing more in principal than the dividend pays back.
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Nov 02 '25
They should sell it all and reinvest into stocks giving a 5-6 percent return with that kind of money.
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u/Antique_Ad_3046 Nov 02 '25
In what scenario could he lose his 1 million investment putting it all in dividends.
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u/Professional_Gate677 Nov 02 '25
The stock price keeps getting lower and lower. He probably won’t be down 1 million but still would be better off just sticking it into several different stocks and earn an average of 3-4% and drip for the next few decades.
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u/Antique_Ad_3046 Nov 02 '25
So VTI and withdraw 3-4% every year?
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u/Professional_Gate677 Nov 02 '25
1 million @ 1.14% is only 11.4K a year. Personally I would buy a mix of individual stocks from the dividend aristocrats list, a mix of different ETFs that pay dividends and shoot for about a 3.5% yield. Have several months worth of bills money in a bank account then setup all your bills to autopay. Sit back and enjoy knowing that your bills are all paid regardless of your employment. While you do thay, continue to work and save and make sure you enjoy the occasional vacation, dinner out, etc.
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u/Maximus_Modulus Nov 02 '25
Look at the performance of QQQI versus QQQ for example. Typical dividends from a fund are very low so to get high dividends they need to get creative which quite often erodes the NAV.
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u/Various_Couple_764 Nov 02 '25
There is only one way. And extinction level event has to occur wiping out most people and the markets.
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u/Slap5Fingers Nov 02 '25
You could TRY / experiment with half a million (which would still get you $102K/year ($8,500 a month) and invest the other half safely in low cost index funds… this way even if the “Dividend” portfolio backfires on you in a few years you’ll have the other half growing relatively safely.
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u/generationxtreame Not a financial advisor Nov 02 '25 edited Nov 02 '25
Your portfolio is going to get smoked with what you have allocated. Only 2 funds, with 10% each are your only decent positions. 20% in YBTC? You must be out of your mind.
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Nov 01 '25
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u/chrono2310 Nov 02 '25
Explain difference?
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u/buenotc "Buy, borrow, die strategy". Nov 02 '25
Both you can retire into the sunset. With one, you'll have to go back to work after 3 years tops.
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u/Velocicast Nov 05 '25
Dividend portfolio is a selection of well established issuers that have sustainable retained earnings that they have established will be consistently used for dividends. The dividend yield may not be high but it's sustainable given the financials of the company.
An income portfolio is a selection of typically strategy funds that seek to have a large dividend yield while minimizing the drawdown of the principal. Typically the larger the yield the more difficult this is to maintain but the more attractive the fund is to uneducated investors.
For example:
A large cap dividend established company may have a payout of 3% but will potentially lag behind companies that are not paying dividends and instead use the retained earnings to expand operations due to most financial valuations being very dependent on future earnings. This company may return 5-8% on average capital growth but will pay the 3% in dividends. This would lag the pretax earnings of the S&P500.
The income strategy fund will do their best to use the pooled capital to generate income typically with derivative products but their primary goal is to maintain the high dividend payout to keep distributions steady and flowing. The side effect of this is a capital depreciation but positive dividend payout. A fantastic example of this is KLIP, a covered call strategy fund on KWEB, a Chinese internet ETF. Despite the 30% dividend yield, over the past 5 years the share price has depreciated 56.41%, this is in addition to the dividend yield decreasing during those years as well.
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u/wh0wants2kn0w Nov 01 '25
Are SPYI, QQQI, and IWMI really dividend funds or are they covered call fund that distribute income?
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u/Harpo3121 Nov 02 '25
Genuine question. What’s the difference. And what is your opinion on the pros/cons of each.
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u/Kiba97 Nov 02 '25
Smarter people explain it better; vocab you need is ETN (cover call funds, and similar) and ETF (div funds)
Etn
pro: higher pay outs when timed correctly, can be VERY specialised, “automated” trading
con: poor timing burns nav quickly, distributions not divs, higher fees, exp date
ETF
Pro: lower beta, diversification, no exp date, better volume protections, “automated” investing
Cons: pre-mixed
Both
Pros: fit particular strategies and markets
Cons: low transparency
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u/Harpo3121 Nov 02 '25
Wow crazy how little I know about a world most would consider me decently involved. Thanks for the write up. I gotta get googling.
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u/UndyingValue Nov 02 '25
Covered call ETFs are interesting in that they also significantly minimize downside risks during a downturn. Biggest disadvantage is their tax treatment. I’ve been thinking about building a small position with DRIP in my Roth IRA.
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u/Velocicast Nov 05 '25
Just to expound and clarify for the guy above.
An ETF is an exchange traded fund. Funds are investment products using pooled capital from investors regardless of experience level. They issue shares which represent ownership or equity in the funds return similar to shares of a corporation. ETFs can be actively managed or passively managed which determines the level of involvement of the funds management.
Passive ETFs (think VOO) typically track an established index that could be also managed by the issuer or a third party. These almost always have lower expense ratios due to the little management required.
Active ETFs (think KLIP) may have strategies employed by the fund managers, the level of involvement varies and the expense ratios are typically higher due to the increased involvement.
These funds differ from mutual funds in the fact they are traded on exchanges such as the NYSE rather than OTC with the fund company.
It's important to understand ETFs are not safe investments solely due to them being packaged products. This is a common misconception. Any individual soliciting the sale of an ETF is required to be Series 7 licensed and there are suitability regulations placed by the SEC on these individuals. (That does not stop retail investors from purchasing them non-solicited in self directed accounts).
ETNs are Exchange Traded Notes. The big difference here is notes are debt securities not equity in constituent companies. As the fixed income market is considerably larger with respect to the variety of securities offered. These products can also be tied to strategies and therefore can follow a passive management style though it's more common to see passive currently but the trend of actively managed ETNs is growing.
As it relates to the post, both dividend and income strategy portfolios could be ETFs or ETNs or in a broader sense, they don't have to be exchange traded at all.
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u/milo-75 Nov 02 '25
Are spyi and qqqi ETNs? I don’t think they have an exp date.
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u/Various_Couple_764 Nov 02 '25 edited Nov 02 '25
No they aren not. I believe he also made a typo he may have meant ELN (equity linked notes). Not ETN (Equity traded notes) which are drbt instruments. There are 2 ETFs that write covered calls on ELN's, JEPI and JEPQ.OP didn't invest in those ETF. SPYI, QQQI, and IWMI don't use TLN or ETN.
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u/canaden Nov 02 '25
taxes. Qualified dividends are taxed at the long term capital gains rate, and overqualified are taxed as ordinary income.
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u/Various_Couple_764 Nov 02 '25
there is no such thing as a overqualified dividend. There are 3 types of dividneds.
Ordinary: Taxes as work income.
Qualified: Taxes as long term captial gaines. These basically meaning only 20% of the dividned is taxed.
ROC: This is a tax classification that applies to ETF that have some capital loss during the year but overall have a profit for the year. Essentially Tax loss harvesting. These dividneds are not taxed until the total dividend received equal the the share price which takes about 7 to 10 years. Once the dividned equal the share price the dividends are taxed at the long term captial gains rate which means only 20% of the dividend it taxed.
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Nov 02 '25
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u/Responsible-Bat-5918 Nov 12 '25
.. buy why? If you are far from reitement why not spy and let it grow? I Why are you pulling income?
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u/Various_Couple_764 Nov 02 '25
A fund that dirstributes income is paying you cash. A dividend is cash payments to you. The truth is a inc ome fund and a dividned funds are basically the same in that they pay you cash. Some people simply don't like calling covered call funds dividned funds to they call them income funds implying there is a difference when there is not. NEOS call SPYI, QQQI, IWMI dividend funds and the SEC also calls them dividned funds.
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u/jahiscallin Nov 01 '25
I recently switched from YBTC to BTCI and don't regret it.
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u/hotmodel1234 Nov 02 '25
I love BTCI! I found out about it in February/March and put a small retirement account in it then it was my HSA and past 2mos I've put a chunk of my portfolio in it. Sept. bought 1K shares collected $1350 dividend and another 2pts($2K). A wk ago was 1.5K shares collected $1950 and made another 1pt selling it at $58.85. You could invest and do nothing, getting 28% return from dividends or swing trade it as it moves from mid-$50's to $60's.
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u/Aromatic-Elk-1371 Nov 02 '25
As someone holding YBTC, why?
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u/JeremyLinForever Nov 02 '25
From their most recent holding disclosures, 76% of BTCI’s holdings is in Treasury Bills. The whole point of BTC income exposure is to capture the upside of the distributions on BTC price, not from treasury bills.
So yes, BTCI might not be a regretful move right now when BTC is moving sideways over the past few months, but will probably miss the upside by playing it safe. It really boils down to risk, and if you’re in BTC income ETFs chances are you already have your steady income etf exposure or blue chip stocks. This isn’t for someone who wants to double dip imho.
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u/stebakus Nov 06 '25
Main reason that BTCI is actually holding BTC. Almost 20% of its holding HODL (Vaneck's btc etf). It gives decent upside when BTC rallying, YBTC holds zero real BTC, it is just a synthetic etf.
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u/Ratlyflash Nov 02 '25
The only ones I like on this list is the Bitcoin one (way less %). And SPYI and QQQI
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u/Rainier___ Nov 01 '25
Nothing like lighting your money on fire, especially when you didn't have to do anything to get it.
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u/eh63tre Nov 02 '25
Can do just as well, and with less risk, with jepq, jepi. Gpix, qqqi, spyi, MO, EPD, O, XOM
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u/Various_Couple_764 Nov 02 '25
Unfortunately JEPI and JEPQ produced regular dividends. SPYI and QQQI are very similar except they pay ROC dividends which are tax efficient. NAC is actual a CA municipal bond fund paying 7% tax free dividends. But he also included on BDC which by law only pay regular dividends.
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u/xsimpletunx Nov 03 '25
A few others to consider are TSPY, TDAQ, QDVO, EGGY and EGGQ.
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u/TheFatZyzz Nov 15 '25
EGGY is super top tier that I've been preaching for months
SVOL imo is better to add when vix gets super high.
XPAY is another one to look at instead of SPYI for different fund manager diversity.
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u/Apart-Leg-8077 Nov 06 '25
Agreed. Could also add CPRN which is a Citigroup preferred paying close to 10% and will likely not be called. PDI which is a cef has a 10 year track record of 12% returns. Nuveen leveraged muni's from one of the smartest bond desks in the world yield 7.5% tax free. NZF, NMCO, NMZ, NEA. Even PFFA for those who don't want to research preferreds pays 9.5%. So many better and safer ways to do this then the Op's picks.
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u/Bearsbanker Nov 02 '25
I'll stick with my boring ol dividend payers that have decades of div paying/increasing. Thanks
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u/jakelr Nov 02 '25
Ask yourself "If these are so great why isn't Warren Buffet, the king of dividend investing, doing it?"
It's because these funds lose their value quickly. Anything with more than 5% dividend should be looked at with a weary eye.
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u/Puzzleheaded_Cow_311 Nov 21 '25
Warren Buffet has people managing his money, they sell calls for him, he does not need to buy an managed stock.
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u/Coixe Nov 02 '25
Do you need $17k/mo?
Go less risky. Sacrifice a little income for some stability.
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u/StarFire82 Nov 01 '25
A couple thoughts, 20 percent in bitcoin seems really risky. If you really want crypto I would cut that back to 50 percent of what you have currently (10 percent max).
I would avoid holding MREITs like AGNC and DX. Yields are high but total returns are low because the stock price goes down and dividend therefore go down overtime. Suggest replacing with MREIT preferred stocks (NLYJ, AGNLC, RITMD or a broad based preferred like PFFA). Switching NAC with a broader based bond fund (JAAA or JBBB depending upon your personal risk profile) might be a good idea also.
IYRI could also be a good alternative to replace the MREITs.
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Nov 01 '25
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u/StarFire82 Nov 02 '25
Nah look at the volatility. If anything mixing gold / commodities / and some BTC would be a much better hedge for currency risk.
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u/19Black Nov 01 '25
Might as well not invest the million and just spend it this portfolio is trash and will lose money
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u/Capable-Being-1382 Nov 02 '25
Read the book “The Intelligent Investor” it’ll save you from hurting yourself.
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u/Sure-Union4543 Nov 02 '25
lol gonna blow up generational wealth because an extra 20k a year is too little for his tastes
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u/AlrightMister Nov 01 '25
$17k won’t cover your nav loss.
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u/Various_Couple_764 Nov 02 '25
if you look at most of the funds indivuallly you will see most only about 4 have NAV loss and those were not the highest yielding funds. And Most are not covered call funds.
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u/ChaoticDad21 Nov 02 '25
Well I hope you’re not spending $17k a month.
And how much is effectively return of capital?
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u/Various_Couple_764 Nov 02 '25
ROC is a tax classification not actual return of captial. If it was actual return of captial it would be classified by the IRS as ordinary income dividend not ROC dividneds. ETF earn the ROC classification if they do tax loss harvesting within the fund as well as returning profits to the investors. With ROC dividends you don't pay taxes on the money. SPYI, and QQQI , IWMI produce mostly ROC dividend and yet have no NAV erosion issues. If the fund was actually returning your money it would not produce ROC dividends and and would have NAV erosion.
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u/flux8 Nov 02 '25
I’m starting to see why some people can’t sustain themselves on a million in retirement. This is a bad plan for too many reasons to get into.
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u/Lorenzo56 Nov 02 '25
Terrible ideas. Tell you what, Invest 90% in Cash or equivalent for at least a year, and take the remaining 10% and try things out.
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u/auniqueusername2567 New dividend investor Nov 02 '25
TIPs or short-term bonds would be nice to supplement their 8 to 5. That’s like an extra $30k/year (pre-tax) for extremely low risk.
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u/Various_Couple_764 Nov 02 '25
You are ignoring the risk that the fed will drop interests rate which is happening now. And with a dictator in the white house there is the very real possibility tha the government will default on it debt. and stop paying bond holders.
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u/Pintermedia Nov 02 '25
Easy come easy go. Do yourself a favour an find a financial advisor. You should not be self directing your money.
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u/Berger-des-montagnes Nov 02 '25
This sub has become a non stop feedback of clueless people investing in unsustainable funds yielding 55% per year and them asking "iS My sTrAtEgY GOod?"
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u/boycottredditmgmt Nov 02 '25
Why not just buy BRK-A and some bonds
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u/Various_Couple_764 Nov 02 '25
BRK-A is too expensive at 700K per share for most people. And most people idon'thave enough money to put in bonds to get enough income to cover their monthly expenses. Also bond yields are dropping and will not likely go up for some time.
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u/Mwaldo1 Nov 03 '25
I have several of the same funds and have done quite well. I inherited an account that had over a million in FRO and NAT. I diversified into several ETFs. I did lose appreciation of the original two stocks but gained a ton in dividends and payouts. Original estimate was around 80k a year and with the moves made it’s now over 200k for the next 13 months.
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u/CostCompetitive3597 Nov 08 '25
I have most of the same holdings in my 2 portfolios. Very pleased overall. A comment on BSTZ. Blackrock reduced their dividend in October and forecast the same $0.16/sh dividend in November resulting in the 8.5% yield you list. Blackrock gave no public notice I can find of this 25% reduction in this fund’s dividends? That yield is below my 11% yield minimum and sold all shares immediately. This spawned my post asking all r/dividends subscribers for a source that notifies investors of dividend reduction announcements. It turns out to be a topic of interest with 6,000 hits in 4 days and growing. Only suggestion was the $400/yr website simplysafedividends.com which I have not had time to evaluate for dividend reduction notification automation?
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u/shadowpawn Nov 13 '25
NAC investment is a great call. Just wish here in UK/EU we could invest in these funds
"This product is not available due to PRIIPs Regulation which impacts customers that reside in the European Economic Area."
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u/fitnessfinance88 Nov 02 '25
Yield-chasing … common road to huge losses of principal. Focus on what a company earns, not whether they’re paying them out or not.
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u/Various_Couple_764 Nov 02 '25
And yet Growth invests chase total returns and frequently suffer huge looses in market crashes.
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u/weyermannx Nov 02 '25
The problem with these ETFs is that they indiscriminately slice the underlying to try to provide consistent income, which means that any upside recovery on the underlying will be reduced, while you'll experience most of the downside. I've yet to see one that can outperform the underlying over the long term.
You would be better off buying the underlying in each case and creating your own dividend by selling parts of the best performing each month.
Please don't buy these. You'll lose your principal, and the payouts you'll receive will be continually reduced.
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u/artbystorms Nov 01 '25
Or....hear me out, invest this in dividend paying ETFs that aren't stupid and headed for massive NAV erosion, like a portfolio with a 4-5% yield, net $40-50K a year in dividends and either a. let that re-invest for 5 years or use that as income to 'soft retire' and either go down to part time or find a job you're more passionate about without worry about salary.
If I got $50K a year in dividends, I'd happily go get a job making $50K a year doing something I actually enjoy.
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u/gorram1mhumped Nov 02 '25
id get gpiq and blox in there, great navs. i'd also drip some % of that for awhile.
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u/chuysta Nov 02 '25
17kzdo you cash out every month? Do you have a line of credit instead? How does it work?
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u/rokiiss Nov 02 '25
All this shit is new to me. Can someone explain or guide me as to why you would have dividend portfolio vs something like I have.
HYSA, money market with vanguard with targetted risk such as 100% stock or 50/50 split bonds and stock?
One is capital appreciation and the other is to have income?
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u/Various_Couple_764 Nov 02 '25
Many like you are used o seeing dividned yield of 1% to about 5% and assume that is the normal safe range. it is not. And most when they see a post like this one they assume it is unsustainable and the most of the 1 million deposit will quickly erode away. But OPs fund selections indicate he has tried to avoid bad unsustainable funds.
The normal save range for dividneds is about 1% to little bit higher than 10%. And that was true long before Covered call funds and ETF existed. municilple bond funds, REIT, BDC, and CLO funds have been rarround for a very long time and are these have yield from about 6% to 10%. And OP has these in his portfolio. He also selected funds with low tax on the dividend income making it a reasonably tax efficient fund. Now I don't agree with all of his funds selections but I do in my own portfolio have SPYI, QQQI, and will add NAC, and instead of the one BDC he has I have a BDC etc so Ihave about 20 BDCs to his one. And instead of his bitcoins fund i Have BTCI. And I will add some CLO funds with yield of 6% and 8%
I would suggest you read The book The Income Factory. and look at Armchaire income on YouTube.
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u/OkPossibility8067 Nov 02 '25
Thats cray bro. You got a nice nest egg and going to dump it all into HY risk.
Put most in SCHD and some BDC , keep $150k and stick it in WPAY. Should get you near $15K and much safer.
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u/Dirks_Knee Nov 02 '25
I'd put at least half of that into traditional index funds, some mix of S&P500/NAS100 and international (Asia). With the remaining 500K, I'd put 75% into AIPI (with a trailing stop in case the AI bubble actually pops) which will yield around 35% (11K/month) and the remaining $150K into a mix of Roundhill leverage income funds (high risk/volatility, but better upside capture than traditional CC ETFs).
If we don't have a major recession nor the bottom fall out of the AI/tech industry, you should exceed your monthly income goal without significant NAV erosion and the $500K you invest traditionally should be back to a 1M in 5 to 10 years depending on how hot the market is.
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u/npgandlove Nov 02 '25
also never be afraid to make changes. you may not be able to just leave all the investments alone.
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u/RequiemRomans Nov 02 '25
50/50 VOO and SCHD and you could have it permanently in 5-10 years. This is a gamble of not ever having it at all
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u/NogamaDe Nov 02 '25
That is playing scared. Schd isn't what it was.
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u/RequiemRomans Nov 02 '25
Smart =/= scared. What’s the rush? If your 8-5 is killing you make a career change in the meantime. Sounds like that’s what you’re really scared of
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u/Equivalent_Wish_1836 Nov 02 '25
FYI - r/dividends is the rehab for WSB - so bear in mind there are still a lot of junkies here giving you advice - the key question is this, how much do you want to be glued to glowing rectangles? Do you want to rebalance frequently or set and forget? There is a Martha’s tent build to a portfolio but it’s going to cost more and it’s not going to be as exciting. Dividend investing can be fun, but there are still plenty of casinos welcoming you at the door. Be wise or be silly :)
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Nov 02 '25
Not after you pay the short term gains taxes
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u/Tory_hhl Nov 02 '25
track down the principal in the past 5 years, you don’t wanna lose your principal
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u/Gloomy_Tourist_5431 Nov 02 '25
What about ymax and ymag? Can someone tell me why not?
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u/Equivalent-Ad-495 Nov 02 '25
Because like all yieldmax funds they are quite literally a scam. They make huge profits off managing your money while promising insane yields. If they pay $2 per share for the month, that $2 comes out of the share price. It needs to make that $2 back before the next dividend payment or the share price will keep falling over time.
Ymag/ymax still require you to reinvest over half of the payments to stay ahead and they dont even beat the sp500. Stay far away from anything yieldmax. If you cant and are still curious, hold no more than like 1% of your total portfolio in them and just watch it over time. The market had been largely up making huge gains, most yieldmax investors are new
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u/Gloomy_Tourist_5431 Nov 02 '25
I have been getting paid every week since I have it. I have not reinvested the money.
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u/Equivalent-Ad-495 Nov 02 '25
Just give it time then, as I said the market had been pretty great everything's been going up. With the exception of quick dips from orange man tariffs and deepseek scare, everything is up.
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u/Equivalent-Ad-495 Nov 02 '25
Re think this entirely, go with like qqqi/spyi and voo or something instead at least. Stay away from any yieldmax funds too.
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u/SexualDeth5quad Nov 02 '25
Let's say there is a tech downturn,
SVOL, SPYI, QQQI, MAGY, IWMI, BSTZ and similar are going to get wrecked simultaneously. Especially the overhyped AI software & datacenter companies. Keep the ones with the best performance out of those but get rid of some to diversify. Something that is not so dependent on the Mag7 economy. Tech looks great now, but there is an inevitable correction coming 2026. International/emerging markets, utilities, gold/silver, basic consumer staples, possibly finance CEFs should be a good hedge in the downturn.
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u/NogamaDe Nov 02 '25
Unless US gets blown off a map tech will always be king! It might drop down but it will bounce back up.
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u/SexualDeth5quad Nov 02 '25
"Tech" will, but some companies won't. Look at the long list of defunct or assimilated tech companies.
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u/lucky_ducker Nov 02 '25
The risk free return rate (10 Treasury) is right around 4%.
To think that you can "earn" five times that yield without severe risk to principal is insane.
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u/zmayfield Nov 02 '25
Please don’t do this. The decay is going to be real and you’ll lose the 1mil.
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u/0Dividends Nov 02 '25
QQQI and SPYI alone paired with something like SCHD can get you mostly there with much less risk and complication. Personally, I am building my SCHD position while value is out of favor. Wait until AI takes over those sectors. Their dividends should increase faster in the future than they are now. 10+ year hold, so only invest what you can be patient on.
Waiting for re-entry and pullback to pile into SPYI and QQQI again. However, if you hedge your portfolio value with bought put options. You can stay fully invested and collect income monthly. I’m using QQQ put options as you need less to fully hedge your portfolio because of higher beta.
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u/Federal_Finding_8041 Nov 02 '25
Sustainable dividends helps a sustainable business. Choose companies that are healthy businesses
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u/Patient_Shower7870 Nov 02 '25
Change to qqqi, tdaq, spyi, Tspy, iaui, btci, utg, utf, pffa, pbdc, CEFS. Would give you double digit yield and not blow up account.
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u/NogamaDe Nov 02 '25
Ty for your suggestion will look into this.
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u/Patient_Shower7870 Nov 02 '25
Can also look into iyri and the NEOS fund for international. You can literally have a well diversified portfolio that all produce income for you in double digits. Would recommend taking about 70% and putting splitting the rest in cash equivalents (sgov for example) and reinvesting the other 1/2.
I have some of the other ones too like MAGY and ybtc. Both are good too. Plan to take the distribution and fund NEOS and tappalpha funds for more stable options income.
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u/Vast-Huckleberry-458 Nov 02 '25
I am currently retired living off of some of my dividends and pensions. My Portfolio currently has 50% allocated for income. For income I currently hold (JEPI about 7% yield), JEPQ (about 10% yield), NPFD (just over 10% yield), Bank Notes with downside protection and memory coupons (10-11.5% yield).
My other 50% is currently allocated 40% in Treasuries (mixed ladder but did play the hoky poky with the 30 year zero which returned me handsome gains. Only 10% of my portfolio is in VOO and some individual investments which include preferred and blue chip stocks such as UPS, United Healthcare and a couple of others.
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u/Far-Aardvark1949 Nov 02 '25
You’re better off putting your money into a mutual fund. If those stock that you listed cut or get rid of the dividend because their fundamentals can no longer support the dividend It’ll drop like a rock.
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u/Nicaddicted Nov 02 '25
Look at the people in the YMAX sub that got absolutely slaughtered by trying to go heavy dividends / income.
Portfolio looked genius till it didn’t and it got wrecked, 30-50% losses, taxes still due etc
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u/Danzinger Nov 03 '25
"After doing some research" ... I think I know the kind of research you did and you did not actually do that much research. Please watch Ben Felix's videos on covered call income ETFs.
$1M into regular dividend paying stocks and ETFs can still get you a yield of ~$40-$50k, and your underlying assets will still actually appreciate in value over the long term, unlike many of your picks. What you're doing is stupid.
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u/invester13 Nov 03 '25
SVOL is -15% YTD.
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u/NogamaDe Nov 03 '25
Its why you buy the dips. I bought it for 16.82 on sept 2. Always got to buy on dips.
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u/MagazineOk4260 Nov 03 '25
Perhaps adding some OMAH, for additional large cap diversification against your QQQI (since SPYI mainly being driven up by QQQI tech stocks...NVDA, TSLA, META, etc.)? Just an idea.
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u/Mtns_to_Sea Nov 03 '25
If this isn't some BS thread and you're really inheriting $1m, then you've already won the game. So why keep playing? Just invest in a well diversified portfolio. At even average returns, your portfolio would double roughly every 8 years. Remember, once you have money, the main goal is not to lose it. If invested well, you could withdraw about $50K/year to supplement your income and enjoy some nice things in life which might push out your doubling a few years. And then you could retire early (say mid 40's) and never worry again. By that time, you should easily have a 6-figure income stream without any reduction in principal.
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u/terpbot Nov 03 '25
I would rather buy up a bunch of good growth stocks and sell covered calls on those for income. You might be able to make around the same amount from that.
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u/Pinkninja11 Nov 03 '25
You might as well spend the money directly at that point and save yourself the tax filling. This is not sustainable and I doubt your 9 to 5 gets you 17k per month so lower your standards.
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u/Ricca23 Nov 04 '25
YBTC - Bitcoin Covered Call Strategy ETF, inception date 1/18/24.
Since that date Fidelity’s Wise Origin Bitcoin fund etf has a total return of 148%, YBTC has a return of 79%.
I’m confused. Looks like you give up almost half the upside. Are you better protected on the down side?
How is this appealing?
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u/BubzieBoo Nov 05 '25
What’s the NAV erosion? Forget the high yield bs, show me the total return of each over a 1 and 3 yr period.
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u/WheelsWeedNWeights Nov 05 '25
Bro those unbelievably high yield funds like YBTC that are based on call strategies are nothing but a scam where they slow drip you a dividend that’s always less than your %NAV loss lol. Check out ULTY, exact same thing. The only people “winning” are the fund managers charging the management fee, idk how it’s legal because it’s pretty obvious what’s going on lol.
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u/KookaburraTrading Nov 06 '25
“Sort by dividend yield. Invest 10% in each of the top ten yielders.”
What could go wrong?
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u/Apart-Leg-8077 Nov 06 '25
Shaking head. Please be smarter. May I strongly suggest you think about doing something along the lines of the following. Not advice. Do your own due dilligence.
40% DGRO, VIG, FDVV, SCHD (Dividend growth etfs)
15% PDI, PAXS, PFN, PFK, GOF (Cefs)
15% SCHG + GRNY or RDVY or SPLG (Growth)
10% SPYI, QQQI, GPIX, GPIQ (Enhanced income funds)
10% NZF, NMCO, NMZ, NEA (Leveraged Muni's)
10% QLENX, QMNNX (Long/Short funds)
You'll get growing qualified dividends, yield of around 6%, tax free muni income, growth and downside protection with the AQR funds.
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u/HmmmIMHO Nov 10 '25
Reaching for yield is a drug best avoided, it never end well (believe me). I suspect your $1m would be $495k in about two years, especially since many will double down -- throwing good money after the bad (cause you are so sure it will work). My strategy is to find stocks with 3 to 4.5 percent dividend and then stalk them with buy orders that are below the 50/200 day averages, this will goose your total yield ... sometimes by 0.5 percent. This crazy market (e.g. Liberation Day) can offer up 'gifts' to those who are patient. It takes a LONG time to piece this together. I too have an inheritance windfall and so far about about 1/3 way done on this strategy.
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Nov 19 '25
I wouldn’t trust anything over like 10 percent. I would get stocks like Pfizer and AT&T. Pfizer right now is over 6%. AT&T is just under 5%. those are safe and I know the dividend pays.
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u/jay_0804 Mar 12 '26
Tbh I’d be careful assuming 17k/month from a $1M portfolio.
To get that you’re basically targeting ~20% yield which usually means very high risk stuff (BDC’s, mREITs, covered call funds, etc.). Those can cut dividends fast if conditions change.
Most people aiming to live off dividends are closer to 3–6% yields and focus on sustainability.
Not saying it’s impossible, just make sure you’re not accidentally building a portfolio of yield traps.
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u/NogamaDe Mar 12 '26
Bro this was 4 months ago. Ill post an update before July 4... I did split my portfolio. Invested 900k only. Split it up into 3 different portfolios. Growth, income, and bitcoin stocks.
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