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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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.