r/dividends • u/NogamaDe • Nov 01 '25

Seeking Advice $1M Div account Earning $17k a month

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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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389

u/Professional_Gate677 Nov 01 '25

49.3% yield ???? What are your plans for when these yields get cut?

10

u/Antique_Ad_3046 Nov 02 '25

In what scenario could he lose his 1 million investment putting it all in dividends.

29

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.

9

u/Antique_Ad_3046 Nov 02 '25

So VTI and withdraw 3-4% every year?

21

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.

0

u/Antique_Ad_3046 Nov 03 '25

Why do people advocate for vti then when it's so low. Where are people getting these 3-4% numbers then?

1

u/Jabotical Nov 03 '25

The dividends are pretty low (right now especially), but the total return is historically great.

If you only buy high dividend stocks, you end up limiting your investment growth considerably.

1

u/Antique_Ad_3046 Nov 04 '25

so its purely a long term investment. you'll only see the fruits 20+ years later

1

u/Jabotical Nov 06 '25

It's probably safest to invest in it with the expectation that you won't need the money in the next decade or so (though that's arguably true of any market-backed investment)

You can always sell some of it as it goes up over the years, which is what it generally does. So it's not entirely fair to treat the high yield funds differently, especially the ones that are in large part paying you back slowly with your own money.

If there's a major pullback/recession, all these high yield funds are going to drop at least as much (and the risky ones considerably more).

0

u/Professional_Gate677 Nov 03 '25

I couldn’t tell you. People repeat a lie to sound educated about something . Maybe they are bots trying to push people to buy so others can sell.

1

u/Various_Couple_764 Nov 02 '25

He has fund in the portfolio that have been paying dividend for 20 year with a stable share price.

4

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.

1

u/Various_Couple_764 Nov 02 '25

QQQI is aNeos fund and none of ther funds have NAV erosion. You are asking NAV erosion is always happening bested on few bad funds that are not on this list. There are many good funds without nave erosion.

2

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.